Retirement Tax Breakdown for Hawaii Residents

Complete Hawaii retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #14 of 51.

State Income Tax
11% top rate

12 bracket(s)

Capital Gains Rate
11%

Treated as ordinary income

Property Tax Rate
0.27%

#49 (Highest)

Sales Tax Rate
4.5%

State 4% + local avg 4.5%

Tax-Friendly State

Hawaii exempts Social Security and has the lowest property taxes in the US. However, high income tax rates on pensions and capital gains offset some benefits.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Taxable

Retirement Exemption

None

Tax Comparison Summary

State income tax11% top
Capital gains11%
Property tax0.27% effective
Sales tax4.5% combined
Overall retiree rank#14 of 51

Hawaii Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
1.4%$0$2,400
3.2%$2,400$4,800
5.5%$4,800$9,600
6.4%$9,600$14,400
6.8%$14,400$19,200
7.2%$19,200$24,000
7.6%$24,000$36,000
7.9%$36,000$48,000
8.25%$48,000$150,000
9%$150,000$175,000
10%$175,000$200,000
11%$200,000No limit

Tax drag can cut your retirement runway by years.

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