{"id":32501,"date":"2016-03-31T19:23:15","date_gmt":"2016-04-01T00:23:15","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/hawaii-s-tax-climate.html"},"modified":"2016-08-04T15:48:12","modified_gmt":"2016-08-04T20:48:12","slug":"hawaii-s-tax-climate","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/finance\/hawaii-s-tax-climate.html","title":{"rendered":"Hawaii&#8217;s Tax Climate"},"content":{"rendered":"<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    <p><em>This article was edited and reviewed by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\" rel=\"noopener\">FindLaw Attorney Writers<\/a><\/em><\/p>\n\n                | Last reviewed\n        <time>\n                            June 05, 2026\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\" rel=\"noopener\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\" rel=\"noopener\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\" rel=\"noopener\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n\n<p>Hawaii has a balanced, broad-based tax system. With business tax changes recently enacted, Hawaii tax laws can make business more profitable. Some favorable aspects:<\/p>\n<ul>\n<li>No personal property tax. One of the few states no longer using tax on inventories, furniture, equipment, machinery, etc.<\/li>\n<li>A credit against taxes paid on purchase of capital goods&#8211;machinery, equipment.<\/li>\n<li>Corporate income <a title=\"Tax\" href=\"https:\/\/corporate.findlaw.com\/finance\/tax.html\" target=\"_blank\">tax rates<\/a> lowered.<\/li>\n<li>No State tax on goods manufactured for sale out of state.<\/li>\n<li>No stock transfer tax.<\/li>\n<li>No unincorporated business tax.<\/li>\n<\/ul>\n<p><b>TAXES LEVIED IN HAWAII<\/b><\/p>\n<ul>\n<li><b>Individual Income Tax.<\/b> Individual tax rates vary from 2% for the first $1,500 up to a maximum 10% for taxable income over $20,500. Capital gains are taxed at a maximum 7.25%.<\/li>\n<li><b>Corporate Income Tax.<\/b> Net income of corporations, 4.4% if taxable income not over $25,000; 5.4% if over $25,000 but not over $100,000; and 6.4% on all over $100,000. The tax imposed on capital gains is 4%. Deductions, in general, conform to the Internal Revenue Code: <a title=\"Federal Tax\" href=\"https:\/\/corporate.findlaw.com\/finance\/tax\/federal-tax.html\" target=\"_blank\">federal taxes<\/a> are not deductible.<\/li>\n<li><b>General Excise (Gross Income) Tax (GET).<\/b> On gross income, gross receipts or gross proceeds of all business activities: 0.5% on wholesaling, intermediary services, manufacturing, producing, canning, and blind, deaf, or totally disabled persons; 0.15% on insurance solicitors; 4% on retail sales of goods, services, and other activities. Exemptions for goods manufactured for export and certain services; refundable tax credit for GET paid on depreciable tangible personal property.<\/li>\n<li><b>Use Tax.<\/b> On tangible personal property imported or purchased without payment of the GET. Rates are 0.5% on goods imported for resale at retail; 4% on all other imports. Refundable income tax credit for use tax paid on depreciable tangible personal property.<\/li>\n<li><b>Banks and Other Financial Corporations Tax.<\/b> Unless otherwise exempt, 7.92% of net income on banks, building and loan associations, financial services loan companies, and other financial corporations. Federal income taxes upon income from sources in the state are deductible.<\/li>\n<li><b>Rental Motor Vehicle and Tour Vehicle Surcharge Tax.<\/b> Effective January 1, 1992, surcharge tax of $2 a day that <a title=\"Renting a Car\" href=\"https:\/\/corporate.findlaw.com\/litigation-disputes\/renting-a-car.html\" target=\"_blank\">a rental motor vehicle<\/a> is rented or leased. Tax levied on lessor. Tour vehicle surcharge tax is $85 per month for each vehicle categorized by PUC as an 18 or over passenger carrier vehicle. Tax levied on tour vehicle operator. One-time $20 registration fee. Beginning January 1, 1993, tour vehicle surcharge tax is $65 per month for each vehicle in the 25 passenger seat and over category and $15 per month for each vehicle in the 8 to 25 passenger seat category.<\/li>\n<li><b>Conveyance Tax.<\/b> On actual and full <a title=\"Contracts Law\" href=\"https:\/\/corporate.findlaw.com\/business-operations\/contracts-law.html\" target=\"_blank\">consideration paid<\/a> for transfer of realty, including leases and subleases, tax of 5 cents per $100 of sales value. Minimum tax on each transaction is $1. Certain exemptions allowed.<\/li>\n<li><b>Property Tax.<\/b> On real property, land and improvements. Assessments at 100% of &quot;fair market value&quot;. Maximum exemption for owner-occupied homes if $40,000, with multiple exemptions allowed for those over 55. Various rates for land, improvements, and classes of property. Fiscal year 1992 commercial rates per $1,000 net assessed value are: Oahu, $8.51; Hawaii, $8.50 (building), $10.00 (land); Kauai, $7.59 (building), $7.99 (land); Maui, $6.50.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Hawaii has a balanced, broad-based tax system. With business tax changes recently enacted, Hawaii tax laws can make business more profitable. Some favorable aspects: ** No personal property tax. One of the few states no longer using tax on &#8230;<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_categories":[6479,6485,6483],"class_list":["post-32501","corporate","type-corporate","status-publish","hentry","corporate_categories-finance","corporate_categories-finance__tax__state-tax","corporate_categories-finance__tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate\/32501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=32501"}],"wp:term":[{"taxonomy":"corporate_categories","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_categories?post=32501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}