State Tax in Hawaii

Hawaii is a beautiful state that is visited often by couples, individuals, and even companies. After visiting the beautiful islands it is easy to be tempted into making a permanent move to the area. Before making any serious decisions it is important to find out more about the state taxation laws in Hawaii. Just because the state is lovely does not mean it is without downsides.

Estate Taxes in Hawaii

Over recent years states have begun reducing the amount of taxes taken on inheritance or stopping the practice all together. While recent Hawaii laws have ceased the practice of taking inheritance taxes, there is still a tax levied against an estate. This means if you pass away in Hawaii your heirs can expect to pay a tax on an estate. Even though the state has taken steps to limit the amount taken any loss of an estate can be detrimental to heirs. Especially those heirs who did not expect the tax or who heavily depended on receiving the entire amount of their estate.

Income Tax Laws in Hawaii

Unlike some states that are popular retirement or travel areas there is a state tax Hawaii on incomes. The tax range rate is between 1.4 per cent and 8.25 per cent with the lowest income bracket being $2,400 and the highest being $48,000. Individuals are allowed personal exemptions with additional exemptions available to anyone who is disabled or over the age of 65.

However, the state tax in Hawaii on incomes does exclude certain individuals. All social security income is exempt which means if you are older or disabled and receiving social security you do not have to worry about paying taxes on it. There are also income exemptions available for any government worker. Government workers receiving a pension for military, federal, or local government work do not have to worry about their saved money being taxed. Also, the military living in Hawaii also do not have to worry about being taxed.

Paying Property Taxes

There are certain property taxes that must be paid in Hawaii. The state of Hawaii charges taxes on all real property including homes and land. These taxes are managed by the four separate Hawaii counties with a homestead exemption of $12,000 in all counties except Honolulu where the taxes are $40,000. Individuals who are between 60 and 69 can claim twice the exemption amount and individuals who are over 70 can claim two and one-half the exemption amount. No personal property such as boats or cars can be assessed a property tax in the state of Hawaii.

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