Hawaii Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for Hawaii in 2026, with political context.
No
No Income Tax
11.0% (top)
Income Tax Rate
#5
Tax Burden Rank (1=highest)
#1
Property Tax Rank (1=highest)
Tax Policy Overview
Hawaii has the lowest property tax rate in the nation but high income taxes and a unique General Excise Tax (GET) that taxes business revenue at every level of the supply chain, effectively acting as a cascading sales tax. The overall tax burden is among the highest nationally.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 11.0% (top) |
| No Income Tax | No |
| Sales Tax | 4.0% (GET — general excise tax, different from sales tax) |
| No Sales Tax | No |
| Corporate Tax | 4.4-6.4% |
| Property Tax Rank | #1 nationally (1=highest) |
| Overall Tax Burden Rank | #5 nationally (1=highest) |
Political Context
Hawaii tax policy is shaped by its island economy and high cost of living. The GET (General Excise Tax) is unique — it taxes businesses at every level, with the cost ultimately passed to consumers. Property tax is kept low deliberately to protect homeowners, but other taxes are high.