State Tax Laws - Hawaii

Considered one of the highest tax states, at least for individuals, Hawaii's tax rates range from 1.4% to 11%. Personal exemptions are $1144 per person, and the standard deduction is $2,200 single, $3212 for head of household, and $4,400 for married couples. Hawaii also has some very interesting credits including many energy credits, a low income housing credit, and even a credit for costs of taking care of certain types of native tree species in your yard. Film credits are refundable credits in Hawaii, making Hawaii 5-0 extra profitable for it's producers.

Estate taxes in Hawaii are especially thorny with the state taxing non-residents who own property here after the first $60,000! Non-resident estate tax rates run from 1.6%-8.4%. Residents have it a bit easier exemption wise, tax rates phase in between 3.5 million and 16 million, but the top rate is a whopping 16%. Definitely a state where estate planning is needed if you own much, especially as a non-resident.

Hawaii's corporate tax rates range from 4.5% to 6.4%, quite a bargain when compared to the individual income tax rates. Sales taxes are a reasonable 4%, up to 0.5% more in some localities. Filing corporations in Hawaii is cheap and easy- $50 fee and an online portal that walks you through the process. The annual report filing fee is also a bargain, coming in at a bank-breaking $15. Only thing is then you own a corporation in Hawaii, not exactly a state where it is easy to get business or legal processes done in general. Hawaii business registration can be found at: http://cca.hawaii.gov/breg/ The department of taxation is at: http://tax.hawaii.gov/


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