Hawaii

Hawaii adopts the IRC as amended to December 31, 2024 for tax years beginning after December 31, 2024

“For all taxable years beginning after December 31, 2024, as used in this chapter, except as provided in this section and sections 235-2.35, 235-2.4, and 235-2.45, "Internal Revenue Code" means subtitle A, chapter 1, of the federal Internal Revenue Code of 1986, as amended as of December 31, 2024, as it applies to the determination of gross income, adjusted gross income, ordinary income and loss, and taxable income.”

Note: Fixed-date conformity advanced each year by the legislature (operative date Dec 31, 2024 for TY2025). HRS 235-2.45 supplies operative dates for the §641-7518 range (incl. §1202 QSBS).

Hawaii top income tax rate 11% on income over $400,000 MFJ (TY2024); 12-bracket graduated schedule

“Over $200,000 ................ $16,379 plus 11.00% over $200,000 ... Over $400,000 ................ $32,757 plus 11.00% over $400,000”

Note: Quoted from the TY2024 N-11 Tax Rate Schedules. Act 46 (SLH 2024) widens the brackets for TY2025, 2027, and 2029; the $400,000 MFJ top threshold applies through TY2024 only.

Hawaii TY2025-2026: 11% top rate applies over $650,000 MFJ / $325,000 single (Act 46 bracket widening)

“Act 46 also amends the income tax brackets by increasing the income limits in each bracket, with amendments taking effect in tax years 2025, 2027, and 2029 ... Over $650,000 ... $51,932 plus 11% of excess over $650,000”

Note: The announcement's TY2026 note: 'The income tax brackets will be the same as in tax year 2025.' The next widening takes effect TY2027; encode it from the Act 46 schedule when TY2027 opens.

Hawaii net long-term capital gain taxed at 7.25% (preferential rate; N-11 Tax on Capital Gains Worksheet)

“Line 16. Multiply line 14 by 7.25% (.0725) and enter the result. Note: If your taxable income is $48,000 ($24,000 for Single, and Married Filing Separately; or $36,000 for Head of Household classifications) or under, do not use this worksheet.”

Note: Hawaii Form N-11 capital gains worksheet (page 33, line 16) applies 7.25% rate to Hawaii net long-term capital gains when income exceeds $48,000 MFJ / $24,000 single thresholds. Verbatim text from the worksheet instruction line.

Hawaii limits the IRC sec. 1212(a) capital-loss carryforward to five years

“the capital loss carryforward allowed by section 1212(a) shall be limited to five years; except for a qualified high technology business as defined in section 235-7.3, which shall be limited to fifteen years.”

Note: Carrybacks under sec. 1212 are not operative in Hawaii. The 15-year window is QHTB-only. URL resolves to the full HRS Chapter 235 PDF; §235-2.45(f) is within this chapter.

HI exempts HI-issued bonds; out-of-state muni bond interest is taxable per HRS §235-7

“If you received interest from bonds issued by another State, or a county, city, or political subdivision of another State, this interest must be included in your Hawaii income.”

Note: HRS §235-7; Hawaii Form N-11 Instructions. HI bonds exempt; other states' muni bonds are taxable Hawaii income. Confidence medium: quote is from form instructions PDF, not directly from the HRS §235-7 statute text at the legislature URL.

HI exempts HI-issued bonds; out-of-state muni bond interest is taxable per HRS §235-7

“If you received interest from bonds issued by another State, or a county, city, or political subdivision of another State, this interest must be included in your Hawaii income.”

Note: HRS §235-7; Hawaii Form N-11 Instructions. HI bonds exempt; other states' muni bonds are taxable Hawaii income. Confidence medium: quote is from form instructions PDF, not directly from the HRS §235-7 statute text at the legislature URL.

Hawaii partially conforms to IRC §1400Z-2 QOZ gain deferral and exclusion

“There is established a qualified opportunity zone tax incentive program to be administered by the department of business, economic development, and tourism. The program shall apply to qualified opportunity zones designated by the Governor pursuant to section 1400Z-1 of the Internal Revenue Code, but only those zones located within the State.”

Note: Hawaii SB1130 (2019) created a Hawaii QOZ program limited to Hawaii-designated opportunity zones. Federal QOF investments in non-Hawaii zones do not receive Hawaii QOZ tax treatment. URL resolves to the full HRS Chapter 235 PDF.

Hawaii partially conforms to IRC §1202 QSBS exclusion; 75% and 100% tiers inoperative

“Section 1202 (with respect to partial exclusion for gain from certain small business stock) shall be operative for purposes of this chapter, except that section 1202(a)(3) and (4) shall not be operative”

Note: Hawaii HRS §235-2.45(e) conforms to IRC §1202 but makes §1202(a)(3) and §1202(a)(4) (the 75% and 100% exclusion tiers) inoperative; only the original 50% exclusion tier applies in Hawaii regardless of acquisition date. URL resolves to the full HRS Chapter 235 PDF.

Hawaii FNMA and FHLMC bond interest is taxable: HRS §235-7(a) exempts only interest exempt under federal law; FNMA/FHLMC have no federal bondholder exemption

“If you reported for federal purposes any interest received on federal obligations, including Treasury bills and notes and U.S. Savings Bonds, enter the amount of that interest on line a of the Hawaii Subtractions Worksheet. For more information about what kinds of obligations should be reported here, see Tax Information Release No. 84-1, "Taxability of Interest on U.S. Obligations."”

Note: The Hawaii N-11 subtraction for federal-obligation interest is limited to genuine federal obligations (Treasury bills/notes, U.S. Savings Bonds) and points to TIR 84-1 for what qualifies. FNMA/FHLMC bonds are not federal obligations exempt under federal law (no bondholder-exemption statute), so their interest is not subtractable and remains taxable in Hawaii under HRS 235-7(a). Confidence medium: the N-11 quote establishes the limited subtraction set; the FNMA/FHLMC-specific taxability follows from TIR 84-1, not verbatim from the N-11 itself. Verbatim extracted from the live n11ins.pdf on 2026-07-04.

Hawaii top income tax rate 11% on income over $400,000 MFJ (TY2024); 12-bracket graduated schedule

“Over $200,000 ................ $16,379 plus 11.00% over $200,000 ... Over $400,000 ................ $32,757 plus 11.00% over $400,000”

Note: Quoted from the TY2024 N-11 Tax Rate Schedules. Act 46 (SLH 2024) widens the brackets for TY2025, 2027, and 2029; the $400,000 MFJ top threshold applies through TY2024 only.

U.S. Treasury interest exempt from Hawaii income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from Hawaii income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

Hawaii estate tax: graduated 10% to 16%; $5,490,000 exclusion (frozen to IRC as of Dec 21, 2017)

“the applicable exclusion amount equal to the exemption equivalent of the unified credit on the decedent's federal estate tax return as set forth for the decedent in chapter 11 of the Internal Revenue Code as amended as of December 21, 2017, as if the decedent died on December 31, 2017”

Note: Hawaii exclusion is frozen to the IRC as of Dec 21, 2017 (not updated for post-TCJA federal increases). TY2025 exclusion is $5,490,000 per Hawaii DOTAX Form M-6 instructions. Rate schedule is 10%-16% graduated (HRS § 236E-8).

Hawaii estate tax: graduated 10% to 16%; $5,490,000 exclusion (frozen to IRC as of Dec 21, 2017)

“the applicable exclusion amount equal to the exemption equivalent of the unified credit on the decedent's federal estate tax return as set forth for the decedent in chapter 11 of the Internal Revenue Code as amended as of December 21, 2017, as if the decedent died on December 31, 2017”

Note: Hawaii exclusion is frozen to the IRC as of Dec 21, 2017 (not updated for post-TCJA federal increases). TY2025 exclusion is $5,490,000 per Hawaii DOTAX Form M-6 instructions. Rate schedule is 10%-16% graduated (HRS § 236E-8).

Hawaii income tax: MFJ bracket thresholds double Single thresholds; same marginal rates at each corresponding bracket

“Over $200,000 ................ $16,379 plus 11.00% over $200,000 ... Over $400,000 ................ $32,757 plus 11.00% over $400,000”

Note: HRS §235-51 provides separate rate schedules: the quoted top rows show Schedule I (single, over $200,000) and Schedule II (MFJ, over $400,000); the MFJ threshold is exactly double the single threshold at the same 11% marginal rate, and the base tax ($32,757) is 2x the single base ($16,379, rounding aside).

Hawaii adopted UDCPRDA (Uniform Disposition of Community Property Rights at Death Act) in 1973

“This part applies to the disposition at death of the following property acquired by a married person: (1) All personal property, wherever situated: (A) Which was acquired as or became, and remained, community property under the laws of another jurisdiction.”

Note: Hawaii enacted UDCPRDA in 1973 (L 1973, c 132; 1971 original uniform act). Protects community property character of assets acquired in community property states when a couple moves to Hawaii.

Hawaii limits the IRC sec. 1212(a) capital-loss carryforward to five years

“the capital loss carryforward allowed by section 1212(a) shall be limited to five years; except for a qualified high technology business as defined in section 235-7.3, which shall be limited to fifteen years.”

Note: Carrybacks under sec. 1212 are not operative in Hawaii. The 15-year window is QHTB-only. URL resolves to the full HRS Chapter 235 PDF; §235-2.45(f) is within this chapter.