Hawaii does not exempt any types of purchase from the state sales tax . In most states, necessities such as groceries , clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.
Hawaii has a progressive income tax and relatively low property taxes . While Hawaii doesn’t technically have a state sales tax , there is a general excise tax that businesses pay on all business activities, and this is generally passed on to consumers.
At 11% the state’s top marginal income- tax rate is second only to California’s. According to the American Legislative Exchange Council, Hawaii has the nation’s heaviest sales- tax burden as a share of personal income. Hawaii’s high taxes feed its high rate of government spending, at the state and county levels.
For people that do not know, a lot of luxury brands have a special price set aside for Hawaii . The tax is Los Angeles is currently 9.5% while the tax in Honolulu is 4.5% (4% everywhere else in Hawaii ). So, anything you buy in Hawaii would technically be cheaper just from the savings you get from their tax.
Lowest and highest sales tax states It calculates Alaska’s sales tax at 1.76 percent, still well below the national average of 7.12 percent. The lowest state and local sales taxes after Alaska’s are in Hawaii (4.44 percent), Wyoming (5.34 percent), Wisconsin (5.43 percent) and Maine (5.5 percent).
That being said, it’s no secret why Honolulu is often ranked in the Top 3 Most Expensive Cities in the U.S. According to a study by the Missouri Economic Research and Information Center in 2019, Hawaii has the highest cost of living in the nation with an index of 191.8.
So , why the high cost? The high cost of living in Hawaii has many reasons, but the short answer is the fact that we’re surrounded by water. Nearly everything we consume has to be shipped here or flown. Hawaii is also a desirable place for the rich to buy property, which continues to drive up housing costs.
Here Are The 10 Safest & Most Peaceful Places To Live In Hawaii Makaweli, Kauai . Dave Seidman/Flickr. Kalaupapa, Molokai. Warren Antiola/Flickr. Schofield Barracks, Oahu . U.S. Pacific Command/Flickr. Hanalei, Kauai . Ik T/Flickr. Kilauea, Kauai . Laupahoehoe, Big Island . Haleiwa, Oahu . Mililani Town, Oahu .
Although the following figures are average estimates on what you might spend on necessities and fun in Hawaii , they may help you when planning your vacation budget: Breakfast and lunch: $8 to $16 per person. Dinner: $14 to $25 per person. Gourmet meal : $25 to $55 per person.
The state of Hawaii has the lowest property tax rate in the nation at 0.28%. Despite this, the median annual tax payment in the state is $1,871, which is much higher. This is because Hawaii has the highest median home value in the U.S. at $669,200.
Located in the South Pacific, where on many islands tipping is not required, Hawaii is a U.S. state and you should tip just like you would anywhere else in the United States. In fact, consider a little more generosity to offset the very high cost of living in Hawaii .
Hawaii State Income Tax
|between $19,201 and $24,000||7.2%|
|between $24,001 and $36,000||7.6%|
|between $36,001 and $48,000||7.9%|
|between $48,001 and $150,000||8.25%|
Sales taxes Hawaii does not have a sales tax . Instead, the state collects a 4% general excise tax , which is assessed on all business activities, including retail sales, commissions, rental income and services. Other activities, such as wholesale sales, are taxed at 0.5%.