Hawaii Tax
Individual Income Tax Forms
Form N-11 Individual Income Tax Return Resident
Form N-13 Individual Income Tax Return Resident
Form N-15 Individual Income Tax Return Non Resident
Corporate Income Tax Forms
Form N-30 Corporation Income Tax Return
Sales Tax Forms
Form G45 General Excise - Use Tax Return
Property Tax Forms
Form N-288 Withholding Tax Return for Disposition by Non Resident
There are a number of taxes applicable to the state of Hawaii, which includes a state sales tax, income tax, and other taxes.
Hawaii state sales tax – Hawaii does not have a sales tax at the point of sale, but rather has an excise tax, paid by sellers, which are passed on to consumers in the price of goods. This tax applies to almost all transactions, including rent, medical services, and food.
Hawaii personal income tax
Hawaii uses a graduated tax system, where income which is as follows:
Income range between $0 and $2,400 1.4%.
Income range between $2,401 and $4,800 3.2%.
Income range between $4,801 and $9,600 5.5%.
Income range between $9,601 and $14,400 6.4%.
Income range between $14,401 and $19,200 6.8%.
Income range between $19,201 and $24,000 7.2%.
Income range between $24,001 and $36,000 7.6%.
Income range between $36,001 and $48,000 7.9%.
Income range $48,001 and over 8.25%.
Hawaii property taxes
- Fund local governments but approved by state
- Property tax rates vary depending on the island the property is on and the type of property.
- The rate can range anywhere between 3.42% for residential property to 12.40% for commercial and hotel properties.
Hawaii special excise taxes
Taxes assessed on vehicles, alcohol, tobacco, gasoline and are in addition to federal excise taxes.
- Funds health programs and other related activities
- $3.00 tax on every pack of cigarettes
- $5.98 tax per gallon of liquor
Hawaii inheritance tax
Hawaii has just instituted a new inheritance tax, which went into effect on April 30, 2010. The inheritance tax only affects estates with a value of over $3.6 Million. Any amounts over $3.6 Million are taxed at a graduated rate, which begins at .8% and can be as high as 16% for estates over $10.1 Million.
Hawaii payroll taxes
State Disability Insurance – .50% withheld with a maximum of $4.42
State Unemployment Insurance – 1.22% - 5.42%
Exemptions
Certain exemptions for
- Military personnel and veterans
- Persons age 65 and older
- Low income tax credits
- Qualified child tax credits
Taxable income
Gross income is defined as all income from whatever source derived, including but not limited to:
- Wages
- Salaries
- Commissions
- Stock Gains
- Dividends
- Royalties income
- Rental income
- Business income
- Inheritance
- Pensions
- Annuities
- Partnership/shareholder income
- Gain from sale of property
Corporate income tax
Hawaii has different levels of corporate income tax rates ranging from 4.4% to 6.4%.
Misc
Hawaii has the highest income tax rates in the nation, with the highest pay rates paying 11% for income over $200,000.
Hawaii is one of the very few states that does not have a point of sale tax, but instead has a gross receipts tax, which taxes everything before reaching the consumer. Many claim that this form of taxation makes for a much higher actual tax rate, as items may be taxed multiple times through the stream of commerce. All items may be subject to the gross receipt tax, even necessities such as medical services and housing.
In relation to Hawaii state taxes, one may be surprised to learn that this state does not actually impose anything referenced as a sales tax. In Hawaii, what seems to be overriding their legislature is something called a "general excise tax." In contrast to a sales tax, a general excise tax i placed only upon the business as opposed to the consumer or customer.
In such a case, businesses no longer maintain the role as the collector on behalf of the state, but rather, must now have their own income and profits taxed. The general excise tax, then, becomes an addition to the other bills the company or retailer must be prepared for, if they wish to set up shop there, as well as adhere to Hawaii state taxes.
This tax does not discriminate against any business transactions either as it encompasses "wholesale, retail, contracting, commissions, services, interest, lease/rental, etc." Accompanying the variety of areas by which taxation may occur is that of equally differing rates of taxation. Hawaii state taxes set forth such taxes upon businesses, which only lead them to add on fees to the products they sell to their customers.
For instance, a customer may be thrown off by seeing an addition to the price of whatever they may be purchasing, but this may easily be explain as the retailer having you contribute the excise tax they are responsible for according to Hawaii state tax law. Though they are not legally required to pass such a tax onto the consumers, they may do so of their own volition.
Hawaii state tax law also sets forth a fuel tax that applies to all motorists in within the state. Its fuel tax is placed upon the fuel companies who disseminate it to others. It is imposed upon each gallon of "liquid fuel," which include gasoline and benzol, for instance. Hawaii state tax on fuel is divided into 3 sections, that of the "state component," "county component," and the "environmental response tax."
The state component specifies 1 cent per gallon for taxation of "aviation fuel and "off-highway diesel oil," and 11 cents for "on-highway." The county component depends upon each municipality, ranging from 8.8 to 16.5 cents per gallon. The environmental response tax is set at a price per barrel of 5 cents, that which is to be sold to distributors for retail.
This tax may also be passed to the consumer, but is originally meant for the distributor alone. Qualifications for a distributor include the following: parties who "refine, manufacture, or produce" fuel for sale, those who import fuel, and individuals who attain fuel from unlicensed distributors meant for eventual sale. According to Hawaii state tax law concerning fuel, all distributors must be both registered and licensed with the state. They are required to fill out a number of forms as well as attain proper certification for such retail rights to fuel within the state. Despite payment of fuel tax, one is still expected to pay environmental response taxes as well.
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