How taxes work in Hawaii
Sales tax. Hawaii charges a 4% statewide sales tax, and counties, cities and special districts add their own on top — which is why the average combined rate of about 4.44% is the number that matters at the till. Hawaii's general excise tax (GET) applies to almost everything, including groceries — it is a tax on businesses that is usually passed to shoppers.
Property tax. At an average effective rate of about 0.32%, a $350,000 home in Hawaii carries roughly $1,120 a year in property tax before exemptions. Hawaii is a low-property-tax state, which quietly lowers the true cost of owning there. Local assessors set actual bills, so verify with the county for any specific property.
Income tax. Progressive, top rate 11% — among the highest in the US. If you are self-employed in Hawaii, you still owe federal self-employment tax plus quarterly state estimates where applicable.
Sales tax · average combined
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
How Hawaii compares with similar states
The states closest to Hawaii on average combined sales tax. Property tax is the average effective rate; income tax shows the structure, not a single rate.
| State | Combined sales tax | Property tax | Income tax |
|---|---|---|---|
| Hawaii (this page) | 4.44% | 0.32% | Progressive |
| Virginia | 5.77% | 0.8% | Progressive |
| Wisconsin | 5.7% | 1.53% | Progressive |
| Maine | 5.5% | 1.09% | Progressive |
| Wyoming | 5.44% | 0.61% | None |
| All-state average (51 entries) | 6.61% | 1.04% | — |
What this means for your money in Hawaii
Property tax is light in Hawaii: an average effective rate of 0.32% ranks 51 of 51, well below the all-state average of 1.04%. A $400,000 home carries about $1,280 a year. Low property tax lowers the fixed cost of owning, which partly offsets whatever the state's income and sales taxes take.
Read together: Hawaii combines an average combined sales tax of 4.44% (rank 46 of 51), an average effective property tax of 0.32% (rank 51 of 51) and progressive income tax brackets. A household comparing states should compare all three against its own pattern — a high earner who rents weighs the income tax most; a homeowner on a fixed income weighs the property tax most.
Major cities in Hawaii
Honolulu, Pearl City, Hilo, Kailua, Waipahu. Combined sales-tax rates differ between these cities — sometimes by more than a full percentage point inside the same state — because county and city layers stack on the state base. The Hawaii sales tax guide breaks down the calculation and links the calculator where you can enter your exact local rate.
Calculators for Hawaii residents
- Hawaii Sales Tax Guide & Examples — what you actually pay, with worked amounts.
- Sales Tax & VAT Calculator — add or extract tax at any rate, including your exact Hawaii local rate.
- Mortgage Calculator — include Hawaii property tax in the monthly payment.
- Property Tax Calculator — estimate a specific property's bill.
- Self-Employment Tax Calculator — federal SE tax for Hawaii freelancers.