Taxes & Business Costs

Maui County offers a variety of tax advantages for businesses, including:

  • Tax exemptions for machinery, equipment, inventory and furniture
  • 100% high tech investment credit; 20% high tech R&D credit in qualified businesses
  • No personal property taxes; no unincorporated business tax
  • State tax exclusion for companies manufacturing capital goods for export
  • General excise tax exemption for locally manufactured goods produced for export
  • No stock transfer tax
  • Stock option income tax exclusion; royalty, patents and copyrights income tax exclusion
  • Hawaii’s Internet Freedom Act provides a 6-year moratorium on discriminatory tax on electronic commerce or Internet access

Corporate Income Tax (State of Hawaii)

Individual Income Tax (State of Hawaii)

General Excise Tax

Use Tax

Transient Accommodations Tax

Property Tax

Unemployment Compensation

Worker’s Compensation

CORPORATE INCOME TAX

Businesses are subject to a progressive income tax as follows:

Taxable Income Rate
$0 to $25,000 4.4%
$25,001 to $100,000 5.4%
More than $100,000 6.4%

Taxes in Hawaii

 

INDIVIDUAL INCOME TAX

Hawaii’s progressive income tax ranges from 1.4% to 8.25% of adjusted gross income as follows:

Taxable income – filing as single Rate
$0 to $2,400 1.4%
$2,401 to $4,800 3.2%
$4,801 to $9,600 5.5%
$9,601 to $14,400 6.4%
$14,401 to $19,200 6.8%
$19,201 to $24,000 7.2%
$24,001 to $36,000 7.6%
$36,001 to $48,000 7.9%
More than $48,001 8.25%

 

Taxable income — married persons filing jointly Rate
$0 to $4,800 1.4%
$4,801 to $9,600 3.2%
$9,601 to $19,200 5.5%
$19,201 to $28,800 6.4%
$28,801 to $38,400 6.8%
$38,401 to $48,000 7.2%
$48,001 to $72,000 7.6%
$72,001 to $96,000 7.9%
More than $96,001 8.25%

Hawaii Department of Taxation 2007 Tax Rate Schedules

 

GENERAL EXCISE TAX

Hawaii does not have a sales tax, but collects a general excise tax on the gross income, receipts or proceeds of all business activities at the following rates:

  • 0.15% on insurance commission
  • 0.50% on wholesaling, manufacturing, producing, wholesale services and use tax on imports for resale
  • 4.0% on retail sale of goods, sale of services, contracting, commissions, rent, interest and other activities

Department of Taxation Frequently Asked Questions

 

USE TAX

Personal property that is imported or purchased from an out-of-state seller for use or further sale in Hawaii is assessed a use tax at the following rates:

  • 0.5% on imported goods for retail
  • 4% on all other imports

Use Tax

 

TRANSIENT ACCOMMODATIONS TAX

Gross rental income that is earned from providing accommodations that are occupied for less than 180 consecutive days is assessed a transient accommodations tax (TAT) of 7.25%.

 

PROPERTY TAX

In Hawaii personal property is not subject to taxation; real property, land and improvements are assessed by the County of Maui.

Property taxes vary from $2 to $14 per $1,000 of value; rates are as follows:

Property Rate
Improved Residential $4.85
Apartment $4.55
Commercial $6.25
Industrial $6.50
Agricultural $4.50
Conservation $4.75
Hotel & Resort $8.20
Unimproved Residential $5.35
Homeowner $2.00
Time Share $14.00

Note: These rates are subject to change.

Significant property tax advantages include:

  • $300,000 owner-occupied home tax exemption
  • Disability exemption
  • Circuit breaker tax credit
  • Inheritance tax is not assessed; there is limited estate tax

County of Maui Real Property Tax Division

 

UNEMPLOYMENT COMPENSATION

Hawaii’s unemployment compensation tax rate is determined by a multi-contribution schedule, whereby an employer’s contribution rate varies between 0% and 5.4%. In addition, employers pay a .05% employment and training fund assessment on taxable wages paid to employees.

 

WORKER’S COMPENSATION

Hawaii’s workers compensation premium rates are lower than California, Florida, Texas and New York, as well as several other states.

Workers’ Compensation Insurance: Rates per $100 of Payroll

State Index Rate
Florida 1.720 $5.52
California 1.564 $5.02
Oklahoma 1.548 $4.97
Rhode Island 1.508 $4.84
Texas 1.464 $4.70
New Hampshire 1.405 $4.53
Louisiana 1.411 $4.51
Delaware 1.405 $4.19
Alabama 1.305 $4.17
New York 1.299 $4.17
Hawaii 1.262 $4.05
U.S 1.000 $3.21

Source: Actuarial & Technical Solutions Inc

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