How does Hawaii’s tax code compare? Hawaii has a graduated state individual income tax, with rates ranging from 1.40 percent to 11.00 percent. Hawaii has a graduated corporate income tax, with rates ranging from 4.4 percent to 6.4 percent. Hawaii also has a 4.00 percent state sales tax rate and an average combined state and local sales tax rate of 4.50 percent. Hawaii has a 0.32 percent effective property tax rate on owner-occupied housing value.
Hawaii has an estate tax. Hawaii has an 18.5 cents per gallon gas tax rate and a $3.20 cigarette excise tax rate (per pack of 20 cigarettes). The State of Hawaii collects $9,503 in state and local tax collections per capita. Hawaii has $14,138 in state and local debt per capita and a 63 percent funded ratio of public pension plans. Hawaii’s tax system ranks 41st overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Hawaii is no exception. The first step toward understanding Hawaii’s tax code is knowing the basics. How does Hawaii collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2025: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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