02-16-2017, 05:47 AM
According to Turbotax, Hawaii has the seventh highest average state income tax rate at 8.25%. That is averaged across 12 brackets, the largest number for any state. As someone who has volunteered to assist seniors and low income folks with their taxes in three different states, I can tell you that Hawaii charges income tax at lower income levels than either of the other two where I have done this. It is quite common for families here to owe no Federal tax (or even get an Earned Income Credit subsidy payment) and still owe the state. While it is usually not much, anything at some of these income levels seems like a lot.
Our real estate taxes are among the lowest, however, and as noted on other threads, Hawaii is in the middle of the pack in terms of overall state and local taxation. Our unique system of complete state funding of public schools skews the real estate tax downward and the income tax upward.
Of course, our taxes would be significantly higher without the impact of tourist paid state revenue.
Our real estate taxes are among the lowest, however, and as noted on other threads, Hawaii is in the middle of the pack in terms of overall state and local taxation. Our unique system of complete state funding of public schools skews the real estate tax downward and the income tax upward.
Of course, our taxes would be significantly higher without the impact of tourist paid state revenue.