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    Hawaii Income Tax Withholding and Payroll Information

    Compliance with state taxes are required for every employer. Learn about relevant rates and automation below.

    A team using ez1095 software for small businesses

    Every state in the country has a unique paradigm for income tax and state unemployment insurance rates. Located below are relevant rates and compliance information by state.

    Employers must also adhere to federal income tax withholding rules as well. More information can befound here about federal rates.

    Alternatively, employers can automatically calculate payroll withholding information by using ezPaycheck.

    Hawaii Tax Information

    General Information
    State AbbreviationHI
    State Tax Withholding State Code
    Acceptable Exemption FormHW-4 or W-4 (check state instructions)
    Basis For WithholdingState Exemptions and Federal Exemptions (if applicable)
    Acceptable Exemption DataS or M / Number of Allowances
    TSP DeferredYes
    Special Coding

    Consult Hawaii state publications for additional coding instructions.

    Additional InformationRefer to HW-4 guidelines for additional instructions.

    How to Calculate Hawaii Taxes

    1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
    2. Subtract the nontaxable Federal Health Benefits Plan payments (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the adjusted gross biweekly wages.
    3. Add taxable fringe benefits (taxable life insurance, etc.) to the adjusted gross biweekly wages.
    4. Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
    5. Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to obtain the taxable income:
      • Exemption Allowance = $1,144 x Number of Exemptions
    6. Apply the taxable income determined in step 5 to the Hawaii tax withholding table to calculate the Hawaii tax withholding:
    7. Divide the annual Hawaii tax withholding by 26 to obtain the biweekly Hawaii tax withholding.

    Want to calculate in an easier way? Learn how to calculate Hawaii taxes via ezPaycheck below.

    Learn More

    Deductions, Allowances, and Exemptions

    The following tables are examples; replace with Hawaii-specific thresholds if available.

    Multiply the number of allowances by $1,144 for the total allowance amount.

    Annual Exemption Table for Allowances
    AllowancesAnnual Amount per Allowance
    For each allowance$1,144
    Lumpsum Exemption$1,650

    Tax Withholding Tables: Hawaii

    Tax Withholding Table: Single
    If Taxable Income IsTax Withholding
    OverBut Not OverRateOf Excess Over
    $0$9,600$0+1.4%$0
    $9,600$14,400$134+3.2%$9,600
    $14,400$19,200$288+5.5%$14,400
    $19,200$24,000$552+6.4%$19,200
    $24,000$36,000$859+6.8%$24,000
    $36,000$48,000$1,675+7.2%$36,000
    $48,000$125,000$2,539+7.6%$48,000
    $125,000and over$8,391+7.9%$125,000
    Tax Withholding Table: Married
    If Taxable Income IsTax Withholding
    OverBut Not OverRateOf Excess Over
    $0$19,200$0+1.4%$0
    $19,200$28,800$269+3.2%$19,200
    $28,800$38,400$576+5.5%$28,800
    $38,400$48,000$1,104+6.4%$38,400
    $48,000$72,000$1,718+6.8%$48,000
    $72,000$96,000$3,350+7.2%$72,000
    $96,000$250,000$5,078+7.6%$96,000
    $250,000and over$16,782+7.9%$250,000

    Automate Payroll with ezPaycheck

    ezPaycheck is an easy-to-use payroll software designed with small businesses in mind: simple, reliable, and affordable. Our developers designed it to be an in-house payroll tax solution for small businesses to calculate taxes, print paychecks for employees & contractors, generate reports and print tax forms. No internet connection is needed.

    Try it free for 30 days with no obligation and no credit card needed. ezPaycheck is available for both Windows and Mac computers.