Hawaii
Taxes and business formation • USA 2025–2026
TL;DR
Hawaii at a glance — 2026 figures
State filing fees and tax position for individuals and companies registered in Hawaii.
| Parameter | Value |
|---|---|
| Personal income tax | See the income tax section below |
| LLC formation fee | $50.00 |
| LLC annual report fee | $15.00 |
| LLC annual report deadline | The annual report is due according to the registration date: registered January 1–March 31 — due March 31 each year; April 1–June 30 — due June 30; July 1–September 30 — due September 30; October 1–December 31 — due December 31. |
| LLC dissolution fee | $25.00 |
| Corporation formation fee | $50.00 |
| Corporation annual report fee | $15.00 |
State filing fees are set by the Secretary of State and change without notice — the official source is linked in each section below. Federal figures for tax year 2026 are on the 2026 tax cheat sheet.
Updated: August 2026
LLC in Hawaii
Corporation in Hawaii
Tax system of Hawaii
Income Tax
Hawaii uses a progressive personal income tax. Rates range from 1.4% to 11%, which makes Hawaii one of the states with the highest income tax, especially for income above $200,000. The tax covers all major income sources — wages, business income, rental income, and capital gains. The state offers standard deductions, child tax credits, and tax relief for retirees and low-income households.
Sales Tax
Instead of a standard sales tax, Hawaii uses the General Excise Tax (GET), which is charged to the business rather than the consumer on sales of goods and services. The base GET rate is 4%, and most counties add a local surcharge of 0.5%, bringing the combined rate to 4.5%. The tax applies to nearly all types of commercial activity — from real estate rentals to professional and personal services.
Property Tax
Property tax in Hawaii is levied at the county level, and rates depend on the type of property (residential, investment, hotel, commercial). The average effective rate is about 0.28%, which is one of the lowest in the U.S. However, in popular tourist areas the tax can be significantly higher for rental homes or properties owned by non-residents.
Business Taxes
C-corporations are subject to a progressive corporate tax ranging from 4.4% to 6.4% depending on the level of profit. In addition, all businesses must pay the GET regardless of entity type, which requires careful attention to structure selection and pricing. The Annual Report is mandatory for all companies registered in Hawaii (LLCs, corporations, nonprofits) and must be filed each year by the end of the quarter in which the company was registered. Businesses are also required to file tangible personal property returns, especially in the case of commercial real estate and equipment.
Excise Taxes
Hawaii levies excise taxes on alcohol, tobacco, and gasoline, as well as on car rentals, tourism services, and short-term accommodations (the Transient Accommodations Tax, or TAT). The TAT rate is 10.25% on short-term rentals (hotels, Airbnb, etc.), plus local surcharges.
Estate / Inheritance Tax
Hawaii is one of the few states with an estate tax. The rate is progressive, up to 20%, and applies to estates exceeding $5.49 million (for 2025, subject to adjustment).
Favorable Tax Conditions
Despite the high personal income tax rates and the complexity of the GET, Hawaii offers: • One of the lowest property tax rates in the U.S.; • A low corporate tax for smaller companies.
Compared to Other States
• Personal income tax up to 11% — one of the highest in the U.S.; • The GET replaces a traditional sales tax and is difficult to calculate correctly without professional support; • One of the lowest property taxes in the country; • Corporate tax is lower than in Connecticut, New Jersey, or California; • An estate tax applies — similar to Oregon or Massachusetts.
Frequently asked questions
Does Hawaii have a personal income tax?+
Yes. Hawaii levies a personal income tax on residents. The current rates and brackets are set out in the income tax section on this page, with a link to the state tax authority — rates are revised by the legislature, so always check the official source before filing.
How much does it cost to register an LLC in Hawaii?+
The state filing fee in Hawaii is $50.00. On top of that you need a registered agent with a physical address in the state, and FinTaxes charges from $299 for the formation service itself.
When is the annual report due for a Hawaii LLC?+
The Hawaii annual report fee is $15.00, due The annual report is due according to the registration date: registered January 1–March 31 — due March 31 each year; April 1–June 30 — due June 30; July 1–September 30 — due September 30; October 1–December 31 — due December 31.. Missing it typically triggers a late penalty and, if left unresolved, administrative dissolution of the company.
Do I need to live in Hawaii to open an LLC there?+
No. You do not need to live in Hawaii — or in the United States at all — to own an LLC registered there. Non-residents can form and own a US LLC; what the state requires is a registered agent with a physical in-state address. Your own tax residency is a separate question and decides which returns you file.
Can FinTaxes file my Hawaii state return remotely?+
Yes. FinTaxes prepares and e-files federal and Hawaii state returns entirely remotely, for clients anywhere in the US or abroad, as an Authorized IRS e-file Provider.
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