Hawaii tax burden — broken down.
Hawaii’s combined tax burden (income + property + sales) lands at 15.32% on our composite — ranking #8 of 51 jurisdictions. The top marginal individual income tax rate is 11.00%.
Hawaii burden, broken into 3 components
| Component | Hawaii rate | National median |
|---|---|---|
| Top marginal income | 11.00% | ~5.30% |
| Effective property | 0.32% | ~1.07% |
| State sales tax | 4.00% | ~5.50% |
| Combined composite | 15.32% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in Hawaii
Hawaii does NOT tax most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are NOT taxed by Hawaii. Federal taxation of these income sources is unchanged regardless of state.
How Hawaii compares
Of all 51 US jurisdictions ranked by combined burden composite, Hawaii sits at #8. That puts Hawaii in the top 10 highest-burden states — relocation candidates often look at the bottom-10 list (WY, SD, TN, AK, NH). For the live cross-state heat map, see the interactive tax burden map.
Hawaii metros — local tax overlay
State rates are uniform across Hawaii— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
More Hawaii metros coming as we expand city coverage.
Hawaii tax — common questions
What is the Hawaii top marginal income tax rate in 2025?
Hawaii's top marginal individual income tax rate is 11.00% on the highest bracket.
What is the Hawaii effective property tax rate?
Hawaii's statewide effective property tax rate is 0.32% of home value (annual). On a $400,000 home that's roughly $1,280/yr. Local variation can be ±0.5pp.
Does Hawaii tax retirement income or Social Security?
Hawaii does NOT tax most retirement income, and does NOT tax Social Security benefits.
Are there any Hawaii-specific tax quirks I should know about?
Hawaii top marginal rate 11% (2nd highest after CA); General Excise Tax 4% (vs traditional sales tax) applies to nearly all transactions including services, B2B, and rent — effectively pyramiding through the economy.
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.