Hawaii tax deductions and write-offs (2026)

No. Hawaii fully exempts military retired pay from state income tax. Other retirement income: Employer-funded pensions (public and private) are exempt. Distributions from your own contributions, including 401(k)/403(b)/457 elective deferrals and IRAs you funded, are taxed.

Partly. Employer-funded pensions (public and private) are exempt. Distributions from your own contributions, including 401(k)/403(b)/457 elective deferrals and IRAs you funded, are taxed. For plans with both employer and employee money (e.g., a 401(k) with an employer match), only the employer-funded share is exempt, computed with an exclusion ratio. Exact treatment depends on plan funding.

No. Hawaii exempts Social Security and Tier 1 Railroad Retirement benefits from its net income tax; the federally taxable amount is subtracted on Form N-11. This is a long-standing exemption (HRS 235-2.3, Act 99 of 1984). it was not checked against a 2026 Form N-11.

Yes: Hawaii offers the Hawaii Earned Income Tax Credit, 40% of the federal EITC (tax years 2023–2027) (refundable). Must claim the federal EITC and use the same filing status and dependents on the Hawaii return. Prorated for part-year residents and nonresidents. Must be claimed within 12 months after the end of the tax year (Form N-356).

Only instead of income tax: itemizers in Hawaii pick sales tax (4% state rate, about 4.5% with local taxes) or state income tax, whichever is bigger. There is no true sales tax; the 4% general excise tax (GET) is levied on businesses and usually passed on to buyers. All four counties add a 0.5% surcharge, and the maximum pass-on rate is 4.712%.

Yes on your federal return if you itemize, within the $40,400 SALT cap. Hawaii adds its own break: Low-income renters credit: $50 per qualified exemption ($100 if 65+) with AGI under $30,000 and over $1,000 rent paid.

Yes: Hawaii offers the Credit for Low-Income Household Renters. Refundable credit of $50 per qualified exemption (doubled for those 65+) for lower-income renters, claimed on Schedule X with Form N-11 or N-15. AGI under $30,000; more than $1,000 in qualifying rent paid; Hawaii resident present more than nine months of the year; cannot be claimed as someone's dependent.

No: Hawaii doesn't base registration on your car's value, so it isn't deductible as personal property tax. State weight tax is 1.75-2.25 cents per pound plus a county per-pound weight tax and a flat $45 registration fee.

Hawaii's top rate is 11%, but its standard deduction and brackets are growing through 2031, and employer pensions are tax-free.

No: Hawaii doesn't offer a deduction or credit for 529 contributions. No contribution deduction (HB 707 died May 2026); Hawaii taxes 529 distributions used for K-12 expenses.

No state child tax credit, but Hawaii has a child care credit: Refundable credit equal to a percentage of care expenses: 25% if AGI is $25,000 or less, dropping 1 point per $5,000 to 20% at $45,001-$50,000, and 15% above $50,000. Eligible expenses are capped at $10,000 for one qualifying person or $20,000 for two or more. The higher $10,000/$20,000 expense caps from Act 163 (2023) are temporary and scheduled to revert at the end of 2027. Dependent exemption is $1,144. Hawaii does have an earned income credit: 40% of the federal EITC (tax years 2023–2027).

Yes, as a business expense: Hawaii charges $50 + $1 State Archives fee to form an LLC; ongoing: $12.50 online / $15 paper annual report. Due by end of the calendar quarter containing the formation anniversary date; not due in the year of formation.