Hawaii State Taxes: What You’ll Owe in the 2026 Tax Season

How is property taxed?

The average property tax rate is 0.29 percent of a home’s assessed value. Actual rates vary by county, with the lowest being 0.22 percent in Maui County and the highest being 0.35 percent in Hawai‘i County. The lowest median property taxes paid was $1,459 in Hawai‘i County, while the highest was $2,553 in Honolulu County.

What about sales and other taxes?

• Sales tax: Hawai‘i has a general excise tax that works like a sales tax on purchases from businesses. The combined state and local average is 4.5 percent. That includes the statewide 4 percent general excise tax and the average local tax of 0.5 percent. Exemptions include medications, prosthetic devices and purchases with food stamps.
• Gas and diesel: The state taxes gas and diesel fuel at 16 cents per gallon, but each island county adds its own gas or diesel tax that ranges from 16.5 to 24 cents per gallon. That puts the total state and local tax rates in a range from 32.5 to 40 cents, depending on the island. The breakdown for each island county is on page 2 of this document.
• Vehicle tax: Hawai‘i has annual vehicle registration fees that can be calculated here. Vehicles brought into Hawai‘i are subject to a use tax calculated based on the “landed value” of the vehicle, which includes the cost of the vehicle, the shipping and handling cost, import duties and insurance. It does not include any taxes paid to other states for the vehicle. Sales tax paid to another state can be claimed as a credit but is capped at the Hawai’i use tax amount. The combined state general excise tax and county surcharge is 4.712 percent on each island.
• Alcohol: Consumers pay the general excise tax on spirits, wine and beer.
• Lottery: Hawai‘i doesn’t have a state lottery, but winnings residents receive from out-of-state lotteries is taxed as ordinary income subject to the state’s income tax rates.

Will my heirs or estate have to pay inheritance and estate tax?

Hawai‘i doesn’t have an inheritance tax, but it does have an estate tax. Estates valued at $5,490,000 or less are exempt. However, the estate of someone who left a surviving spouse must file a return, even if no tax is due, to retain the unused tax benefit for the spouse. The brackets are below:

Are there any tax breaks for older residents?

Each island county in Hawai‘i has its own property tax exemptions, with some offering them specifically for older residents:

• Honolulu: People age 65 and older receive a $160,000 exemption from the assessed value of their home. This is above the standard exemption of $120,000.
• Hawai‘i: The island has a basic exemption of $50,000 from the assessed value of a home for homeowners younger than 60. For homeowners 60 to 64 years old, the exemption is $85,000, while for homeowners 65 to 69 years old it’s $90,000. Homeowners 70 to 74 years old can apply for a $105,000 exemption, while those 75 to 79 may apply for a $110,000 exemption, and homeowners 80 or older may receive a $125,000 exemption. The age is calculated as of Jan. 1, at the date of the assessment. For any exemption, the property must be the homeowner’s primary residence. All taxpayers approved for a home exemption get an additional exemption of 20 percent of the assessed value of the property, but it must not exceed $100,000.
• Kauai: Homeowners younger than 69 are eligible for an exemption of $220,000. Those who are ages 60 to 70 are eligible for a $240,000 exemption from their home’s assessed value. Taxpayers 70 and older are eligible for an exemption of $260,000.
• Maui: Offers a $300,000 exemption from a homeowner’s assessed property value, but age is not a qualifying factor.

Are military retirement pensions taxed?

No. The state does not tax military pensions.

What is the deadline for filing taxes in 2026?

The deadline for filing 2025 state taxes was April 20, 2026, while the federal deadline was April 15. The state offers an extension until Oct. 20, but taxes due must have been paid by the April deadline.

More AARP Financial Resources

• AARP Retirement Calculator Determine if you are saving enough to retire when — and how — you want.
• AARP Social Security Calculator Figure out when to claim and how to maximize your Social Security benefits.
• AARP Tax Tools Explore resources to help you calculate and prepare taxes.