![]() You may claim itemized deductions if the total of your itemized deductions you claim is larger than the Hawaii standard deduction. Savings Bonds) and benefits from, or premiums paid to, legal services plans.Īfter determining your state AGI, you can calculate Hawaii taxable income by subtracting any applicable deductions. ![]() Other subtractions include interest from federal obligations (like U.S. Payments made to an individual housing account (intended for a down payment on a first home) can also be subtracted up to $5,000 (single filers) and $10,000 (joint filers) per year and $25,000 total. Many types of pensions are exempt, as are all Social Security benefits. Several types of income that are taxable federally are not taxable in Hawaii and must be subtracted to calculate Hawaii AGI. This is similar to the federal AGI that appears on your IRS form 1040, with some key differences. The rates above apply to Hawaii taxable income, which is based on Hawaii adjusted gross income (AGI). Income earners living on the Hawaiian Islands pay tax rates between 1.40% and 11%, depending on their income level. The most significant tax in the state is the personal income tax. If you’re thinking about a move to the Aloha State, you’ll want to know how the state’s tax system affects your finances. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. The excise tax is 4%, with some areas charging an additional 0.5%.Ī financial advisor can help you understand how taxes fit into your overall financial goals. This tax is usually passed on to consumers. While Hawaii doesn’t technically have a state sales tax, there is a general excise tax that businesses pay on all business activities. That's the lowest effective property tax rate in the U.S. Gas tax: 16 cents per gallon of regular gasoline and dieselĪlthough Hawaii's top income tax rate of 11% is quite high on a national scale, property taxes average just 0.29% of property values annually. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |