Taxation in Hawaii

Updated on Wednesday 25th July 2018

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Hawaii is an American state where you can start and grow your business in a fast and reliable manner. It is the proper place for foreigners willing to explore the opportunities in the archipelago and to benefit from a favorable tax structure. We invite you to address your inquiries to our team of company formation agents in USA and find out information about how to start a business in USA and about the taxes companies need to pay.

What is the corporate income tax in Hawaii?

A series of marginal tax rates varying from 4.4% and 6.4% is applicable for corporations in Hawaii, as seen in the table below:
Taxable Income Tax Rate
Up to $25,000  4.4%
Between $25,000 and $100,000 5.4%
More than $100,000  6.4%

We mention that companies or business persons who do not have properties in Hawaii, but have sales activities in this state need to consider the alternative tax of 0.5%  which is calculated on the gross sale. Also, you can read the general guide to company incorporation in Hawaii if you would like to know more about how you can register a company in this state.

What is the sales tax in Hawaii?

Hawaii imposes a general sales tax of 4% and the good news is that cities do not enforce their own sales tax. The exception of the sales tax structure is the Island of Oahu where an additional 0.5% rate is applicable to sustain the transportation system. The sales tax in Hawaii is imposed on all goods and services sold in this state. Let us remind you that if you are interested in USA company formation, including in Hawaii, our team of consultants are at your disposal.

Other tax facts about Hawaii

There is no property tax imposed on personal assets like boats or cars. As for the real estate properties in Hawaii, including lands owned by foreigners, these are burdened at the fair market value. It is good to know that in Hawaii there is no inheritance tax, just like in most American states. The Department of Taxation in Hawaii is at the disposal of domestic and foreign entrepreneurs who want to pay the taxes and need to submit specific forms.

Also, you may get in touch with our team of company incorporation specialists in USA for details and guidance in matters of taxation in Hawaii or company formation in USA in any state.