In lieu of net income tax and general excise tax. Imposed on net income, as defined, at 7.92% on banks, building and loan associations, industrial loan companies and other financial corporations. Federal income taxes upon income from sources in the state are deductible.
This tax is structured as a franchise tax, and is payable in arrears. Franchise tax for year x, which is generally calculated from net income from year x-1, is payable, if elected, in 12 installments throughout year x.
Distribution: State general fund.
SOURCE: Compiled by the Tax Foundation of Hawaii from the Hawaii Revised Statutes, as amended through the 2021 legislative session, and Revised Ordinances for various counties. Consult the statute, ordinance, rules, or regulations for specific cases or circumstances.
Last Revised: August 20, 2021