List Of State Of Hawaii Tax References

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The State of Hawaii Tax: Understanding Your Obligations

Introduction

If you're a resident or business owner in the beautiful State of Hawaii, you're likely aware of the various taxes you're required to pay. From income tax to property tax, it can be challenging to keep up with your obligations. In this article, we'll provide an overview of the state of Hawaii tax system and the different taxes you need to pay.

Hawaii Income Tax

Hawaii has a progressive income tax system, which means that the more you earn, the higher your tax rate. For the 2023 tax year, the tax rates range from 1.4% to 11%. If you're a resident of Hawaii, you'll need to file a Hawaii state tax return if you earned more than $1,000 in income during the year.

Hawaii Property Tax

In Hawaii, property taxes are calculated based on the assessed value of your property. The tax rate varies depending on the county you live in. For example, in Honolulu County, the tax rate for residential properties is $3.50 per $1,000 of assessed value. If you own a business property, the tax rate is higher at $12.40 per $1,000 of assessed value.

Hawaii Sales Tax

Hawaii does not have a state sales tax. However, each county has the option to impose a sales tax. Currently, only the county of Hawaii (also known as the Big Island) has a General Excise Tax (GET) of 0.25%.

Hawaii Excise Tax

The Hawaii General Excise Tax (GET) is a tax on business activity. The tax rate is currently 4%, and businesses are required to register with the Department of Taxation and obtain a GET license. The GET is levied on the gross income of the business, which means that it's calculated before any expenses or deductions.

Hawaii Transient Accommodation Tax

If you own a vacation rental or bed and breakfast, you're required to pay the Hawaii Transient Accommodation Tax (TAT). The tax rate is currently 10.25%, and it applies to the gross rental income received from transient accommodations.

Hawaii Vehicle Registration Tax

If you own a vehicle in Hawaii, you're required to pay a vehicle registration tax. The tax rate varies depending on the weight of the vehicle and ranges from $27.50 to $437.50 per year.

Hawaii Estate Tax

If you're a resident of Hawaii and your estate is worth more than $5.49 million, your heirs may be required to pay an estate tax. The tax rate ranges from 10% to 20%. However, it's important to note that the federal estate tax exemption is currently $11.7 million, which means that most people won't be subject to the Hawaii estate tax.

Conclusion

In conclusion, the State of Hawaii tax system can be complex, and it's important to understand your obligations as a resident or business owner. By familiarizing yourself with the different taxes you need to pay, you can avoid penalties and ensure that you're in compliance with the law. If you're ever unsure about your tax obligations, don't hesitate to consult with a tax professional.

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