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Below is a snapshot of key features of Hawaii's tax system. (Scroll Down)
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State & Local Revenue (FY08)
- General Revenue, Own-Source (GROS): $9.4 billion
- General Revenue as a Share of Income: 17.6%
- Tax Revenue: $6.7 billion
- Tax Revenue as Share of income: 12.7%
- Personal Income Tax (Share of Tax Revenue): 22.9% (30 out of 51)
- Corporate Income Tax (Share of Tax Revenue): 1.3% (47 out of 51)
- Sales & Excise Tax (Share of Tax Revenue): 51.5% (6 out of 51)
- Property Tax (Share of Tax Revenue): 18.6% (44 out of 51)
- Other Taxes (Share of Tax Revenue): 1.9% (35 out of 51)
Personal Income Tax Features (2011)
- Range of Tax Rates: 1.4% - 11%
- Standard Deduction: $2,000 ($4,000 for Married Couples)
- Personal Exemption: $1,040
- Dependent Exemption: $1,040
- Earned Income Tax Credit (EITC): None
- Top rate will decline to 8.25% when top 3 brackets expire in 2016
- Standard deduction, personal exemption, and dependent exemption will decline in 2016
- Notable capital gains preference
Corporate Income Tax Features (2011)
- Range of Tax Rates: 4.40% - 6.40%
- Income Level at Which Top Rate Applies: $100,000
- Combined Reporting: Yes
- Apportionment Factor (Payroll): 33%
- Apportionment Factor (Property): 33%
- Apportionment Factor (Sales): 33%
Sales Tax Features (2011)
- State Sales Tax Rate: 4.00%
- Average Local Sales Tax Rate: 0.40%
- Average Combined State & Local Sales Tax Rate: 4.40%
- State Sales Tax Treatment of Groceries: Taxed at regular rate, but offsetting credit/rebate is available
- Local Sales Tax Treatment of Groceries: Taxed
- Number of Services Taxed: 160 out of 168 surveyed
- Streamlined Sales Tax Membership: No
- Sales tax is actually a Gross Receipts Tax (GRT)
- State sales tax applies to gasoline
Property Tax Features (2011)
- Provides a large homestead exemption.
Other Tax & Revenue Features (2011)
- Gasoline Tax Rate (per gallon): $0.494
- Diesel Tax Rate (per gallon): $0.50
- Cigarette Tax Rate (per pack): $3.20
- Estate or Inheritance Tax: Yes
- Net Lottery Sales Per Capita: N/A
Tax Policy Oversight
- Tax Expenditure Report: Yes, but excludes at least one major tax
- Tax Incidence Analysis Capability: None
Last Updated August 25, 2011
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