Most mainland tax firms treat Hawaii like any other state. It isn't. We've been filing Hawaii returns since 2009 — these aren't surprises to us.
Have a Hawaii tax question? We've been answering them since 2009.
Call 808-946-7297 →Hawaii's General Excise Tax applies to ALL gross business income — services, rentals, wholesale transactions, even tips. The rate is 4% statewide and 4.5% on Oahu. It's a tax on the privilege of doing business in Hawaii, not just on retail sales. Most new business owners get this completely wrong in year one.
GET must be filed regularly — monthly, quarterly, or annually depending on your revenue — regardless of whether you collected it from customers.
Hawaii's individual income tax deadline is April 20 — five days after the federal deadline. Business returns (Form N-30 for corporations, N-20 for partnerships) have their own schedules. Don't assume the federal deadline applies to everything.
Extensions are available but don't extend your time to pay. If you owe taxes, interest begins April 20 regardless of whether an extension was filed.
Hawaii has 12 income tax brackets and a top marginal rate of 11% — the highest in the nation. Combined with federal rates, high earners in Hawaii can face effective rates above 40%. Strategic deduction planning and entity structuring isn't optional at this level — it's essential.
For every $10,000 you can legally shift or defer, the combined Hawaii + federal savings can exceed $4,000. Year-round planning matters here more than anywhere else.
Hawaii offers a 35% state tax credit for solar energy systems on residential property — one of the most generous in the country. Combined with the federal 30% Investment Tax Credit, homeowners can offset up to 65% of installation costs through tax credits alone.
This is a credit, not a deduction — it reduces your tax bill dollar-for-dollar. We make sure you claim it correctly and capture every dollar available.
Hawaii does not fully conform to federal bonus depreciation rules. Your federal and state depreciation deductions can be significantly different — a fact that trips up many real estate investors.
If you have income from properties or business activity on multiple islands, your GET and income tax filings need to reflect the correct county surcharge rates. Oahu charges 0.5% more than other islands.
Oahu and other counties have specific STR permitting requirements that affect your tax treatment. Operating without proper permits creates both legal and tax exposure. We help you stay on the right side of both.
Short-term rentals (less than 180 days) are subject to Hawaii's TAT in addition to the GET. The current rate is 10.25%. Many vacation rental owners aren't aware they owe both.
Unlike federal, Hawaii taxes long-term capital gains at ordinary income rates — up to 7.25%. The federal preferential rate of 0%, 15%, or 20% doesn't apply at the state level.
Hawaii has its own estate tax separate from federal, with an exemption of $5.49 million. Estates above that threshold owe Hawaii estate tax even if federal estate tax doesn't apply.
15+ years of Hawaii returns. We've seen every situation. Call us.