Hawaii Wage and Payroll Tax Facts

February 02, 2024

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Hawaii.

The Aloha State has a moderately higher minimum wage rate than the one required by the federal government in the Fair Labor Standards Act (FLSA). The biggest difference in rates is the state's tipped minimum wage rate, which is over quadruple its federal counterpart. 
 
When it comes to processing payroll, Hawaii-based organizations must handle the following taxes in addition to those required by the federal government:

The below information was last updated January 30, 2024. It is not intended as legal or tax advice.


Hawaii Minimum Wage Rates

Wage Type

Hawaii Rates

Federal Rates

Minimum Wage

$14.00

$7.25

Tipped Minimum Wage

$12.75

$2.13

Actual Tip Credit

$1.25*

$5.12

*If the combined amount the employee receives in wages and tips is at least $7 more than the applicable minimum wage.


Hawaii State Income Tax (SIT) Rates

Hawaii's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax:

Filing Status Income Tax Bracket
[Over X] - [But not over Y]
2024 Income Tax Rate
Single / Married (filed separately) $0 - $2,400 1.40% of excess over $0
$2,400 - $4,800 $34 + 3.20% of excess over $2,400
$4,800 - $9,600 $110 + 5.50% of excess over $4,800
$9,600 - $14,400 $374 + 6.40% of excess over $9,600
$14,400 - $19,200 $682 + 6.80% of excess over $14,400
$19,200 - $24,000 $1,008 + 7.20% of excess over $19,200
$24,000 - $36,000 $1,354 + 7.60% of excess over $24,000
$36,000 - $48,000 $2,266 + 7.90% of excess over $36,000
$48,000 - $150,000 $3,214 + 8.25% of excess over $48,000
$150,000 - $175,000 $11,629 + 9.00% of excess over $150,000
$175,000 - $200,000 $13,879 + 10.00% of excess over $175,000
$200,000 or greater $16,379 + 11.00% of excess over $200,000
Married (filed jointly) / Certain Widows and Widowers $0 - $4,800 1.40% of excess over $0
$4,800 - $9,600 $67 + 3.20% of excess over $4,800
$9,600 - $19,200 $221 + 5.50% of excess over $9,600
$19,200 - $28,800 $749 + 6.40% of excess over $19,200
$28,800 - $38,400 $1,363 + 6.80% of excess over $28,800
$38,400 - $48,000 $2,016 + 7.20% of excess over $38,400
$48,000 - $72,000 $2,707 + 7.60% of excess over $48,000
$72,000 - $96,000 $4,531 + 7.90% of excess over $72,000
$96,000 - $300,000 $6,427 + 8.25% of excess over $96,000
$300,000 - $350,000 $23,257 + 9.00% of excess over $300,000
$350,000 - $400,000 $27,757 + 10.00% of excess over $350,000
$400,000 or greater $32,757 + 11.00% of excess over $400,000
Head of Household $0 - $3,600 1.40% of excess over $0
$3,600 - $7,200 $50 + 3.20% of excess over $3,600
$7,200 - $14,400 $166 + 5.50% of excess over $7,200
$14,400 - $21,600 $562 + 6.40% of excess over $14,400
$21,600 - $28,800 $1,022 + 6.80% of excess over $21,600
$28,800 - $36,000 $1,512 + 7.20% of excess over $28,800
$36,000 - $54,000 $2,030 + 7.60% of excess over $36,000
$54,000 - $72,000 $3,398 + 7.90% of excess over $54,000
$72,000 - $225,000 $4,820 + 8.25% of excess over $72,000
$225,000 - $262,500 $17,443 + 9.00% of excess over $225,000
$262,500 - $300,000 $20,818 + 10.00% of excess over $262,500
$300,000 or greater $24,568 + 11.00% of excess over $300,000

 

Additional Hawaii SIT Details

Supplemental Withholding Computation

Combine with the regular wages for the current or preceding payroll and apply the appropriate rate. 

Valid Filing Statuses

  • S = Single, Married; filing separately
  • M = Married; filing jointly, Married; but withhold at higher Single rate, Certified Disabled Person (not subject to withholding), Nonresident Military Spouse (not subject to withholding)

Exemptions

  • Wages for casual services (including domestic services not in the employer's trade or business) if the pay for such services is less than in a calendar quarter and the service is performed by someone regularly employed by that employer to perform such service
  • Remuneration to newspaper delivery persons under age 18
  • Remuneration to newspaper or magazine vendors
  • Wages for services not in the employer's regular business
  • Non-cash remuneration to salespersons
  • Remuneration for services as an employee by ordained ministers in the exercise of ministry or members of religious orders in the exercise of order duties
  • State employees with Hansen's disease (i.e., leprosy)
  • Armed Forces reservists and Hawaii National Guards for performance of duty (first $1,750 received)

Form W-4

Form HW-4

Reconciliation Frequency

Annual


Hawaii State Unemployment Insurance (SUI) Rates

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

Hawaii SUI Tax Details

Taxable Wage Base

$59,100

Employee Subject to Tax

No

Rates for Experienced Employers

0.20% - 6.20%

Rates for New Employers

4.00%

Effective Period

Calendar Year

Voluntary Contributions Allowed

No


Hawaii Temporary Disability Insurance (TDI) Rates

Hawaii's TDI benefits are funded by both employees and employers through mandatory payroll deductions and TDI contributions, respectively.

Hawaii TDI Tax Details*

Maximum Taxable Earnings

$1,318.48 (a week)
Employee Deduction Rate Up to half the cost of the premium but no more than 0.5% of the employee's weekly wage
Maximum Employee Deduction Amount $6.59 (a week)
Employer Contribution Remaining costs after employee contributions are applied

*Amounts are based on an employee's weekly wages, not annual salary.


Miscellaneous Hawaii Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Hawaii currently has no reciprocal agreements with any other states.

This doesn’t mean, however, that interstate workers living in Hawaii pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.

Paid Sick Leave (PSL) Taxes

The state of Hawaii doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.

Paid Family and Medical Leave (PFML) Taxes

The state of Hawaii doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.


Hawaii Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Taxation for withholding tax topics and the Department of Labor and Industrial Relations for unemployment tax topics.

Registration Details

Department of Taxation

Department of Labor and Industrial Relations

Phone

(808) 587-1455 (808) 586-8914

Online Registration

Hawaii Tax Online Login Page

Registration Instructions

Online registration is required and a combined version that includes both departments is available. Account numbers will be issued in 7-10 days via the online process.

Separate account numbers for each tax type can be issued under the combined registration or separately if employers choose to register with each department individually.

Employer Self-Service Login

Hawaii Tax Online Login Page Unemployment Insurance Login Page

Additional Hawaii Payroll Tax Resources

 

This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.

011002000110a-taxservices-fullwidth

Get Taxes Done Right, Without the Stress

We know there's a lot that goes into preparing and filing payroll tax forms. Save time and get support from our expert team. As a Registered Reporting Agent with the IRS, we can help prepare and file all the necessary forms you need to remain compliant - even in the face of changing legislation. Learn more here.

Payroll Tax Services