9/9/2023 0 Comments Hawaii income tax tables 2020While Hawaii’s GET is lower than the sales tax of most states, the tax applies to far more products and services than do sales taxes in most other states. The County of Kauai also imposes an additional 0.50%, while the County of Hawaii charges an extra 0.25%. Honolulu County, which is coterminous with the island of Oahu, imposes an extra 0.50% to support the county transportation system. Additionally, one locality has an additional excise tax. So in effect, Hawaiians statewide pay an extra 4% for services and goods. They are allowed to (and often do) pass this tax on to customers. However, the state does have a general excise tax that businesses are required to pay. Hawaii doesn’t technically have a sales tax. Short-term capital gains are taxed at the full income tax rates listed above. You will pay either 0%, 15% or 20% in tax on long-term capital gains (which are gains that are realized from the sale of investment you held for at least one year). In Hawaii, the taxes you pay on long-term capital gains will depend on your taxable income and filing status. Credit for Child Passenger Restraint System: a refundable credit of $25 for taxpayers who purchased a child safety seat.Credit for Child and Dependent Care Expenses: a refundable credit for some child care expenses.Credit for Low-Income Household Renters: a refundable credit for renters with a Hawaii AGI of less than $30,000.Refundable Food/Excise Tax Credit: taxpayers with an AGI of less than $50,000 per year ($30,000 for single filers) may qualify for this credit based on food sales taxes.In some cases, if your tax liability is zero, these credits can actually return money to you (these are called refundable credits). Once you have calculated your tax liability, there are tax credits you can claim in Hawaii to reduce the amount you have to pay. This stands at $2,200 for single filers and married persons filing separately and $4,400 for joint filers. 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 interview your advisor matches at no cost to decide which one 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 0.27% of property values annually.Property tax: 0.27% average effective rate.
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