December, 17th 2025
Each state has unique income tax withholding rules. Below are Hawaii's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.
Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates .
Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.
| State Abbreviation | HI |
|---|---|
| Acceptable Exemption Form | HW-4 or W-4 |
| Basis For Withholding | State Exemptions and Federal Exemptions (if applicable) |
| Acceptable Exemption Data | S or M / Number of Allowances |
| TSP Deferred | Yes |
| Special Coding | Consult Hawaii state publications for additional coding instructions. |
| Additional Information | Refer to HW-4 guidelines for additional instructions. |
| Official State Tax Website | Visit Official Website |
Hawaii's HW-4 uses a worksheet very similar to the old federal W-4. An employee claims 1 for themselves (if no one else can claim them) and can claim 1 for a nonworking spouse (filing jointly) if the spouse isn't claiming their own allowance. 1 allowance is given for each dependent. In addition, Hawaii allows additional allowances for age: if the employee is 65 or over, they may claim one extra allowance (and similarly one if the spouse is 65+). Head of Household filers may claim one extra allowance for that status. Hawaii also uniquely allows an extra allowance if the taxpayer expects to claim certain tax credits (e.g., low-income household renters credit, generally one allowance if the credits exceed $250).
| Component | Allowances | Notes |
|---|---|---|
| Yourself | 1 allowance | If no one else can claim you |
| Spouse (if filing jointly) | 1 allowance | If spouse isn't claiming their own allowance |
| Each Dependent | 1 allowance | Per dependent |
| Age 65+ (Employee) | 1 allowance | If employee is 65 or over |
| Age 65+ (Spouse) | 1 allowance | If spouse is 65 or over |
| Head of Household | 1 allowance | Extra allowance for HOH status |
| Tax Credits | 1 allowance | If expected tax credits exceed $250 |
Total Allowances = Yourself + Spouse + Dependents + Age Allowances + HOH + Tax Credits
Hawaii does not permit a blanket 'exempt' status - even if exempt from federal, one must claim at least zero allowances on HW-4.
For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.
Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
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.
Add taxable fringe benefits (taxable life insurance, etc.) to the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to obtain the taxable income.
Withholding Allowance = $1,144 × Number of Withholding Allowances
Apply the taxable income determined in step 5 to the Hawaii tax withholding table to calculate the Hawaii tax withholding.
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| Withholding Allowance | Annual Amount |
|---|---|
| For each allowance | $1,144 |
| Lump sum withholding allowance | $4,350 |
Formula: $1,144 × Number of Withholding Allowances
Withholding allowance: $1,144 per allowance. Lump sum withholding allowance: $4,350.
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $9,600 | $0 | + | 1.40% | $0 |
| $9,600 | $14,400 | $134 | + | 3.20% | $9,600 |
| $14,400 | $19,200 | $288 | + | 5.50% | $14,400 |
| $19,200 | $24,000 | $552 | + | 6.40% | $19,200 |
| $24,000 | $36,000 | $859 | + | 6.80% | $24,000 |
| $36,000 | $48,000 | $1,675 | + | 7.20% | $36,000 |
| $48,000 | $125,000 | $2,539 | + | 7.60% | $48,000 |
| $125,000 | and over | $8,391 | + | 7.90% | $125,000 |
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $19,200 | $0 | + | 1.40% | $0 |
| $19,200 | $28,800 | $269 | + | 3.20% | $19,200 |
| $28,800 | $38,400 | $576 | + | 5.50% | $28,800 |
| $38,400 | $48,000 | $1,104 | + | 6.40% | $38,400 |
| $48,000 | $72,000 | $1,718 | + | 6.80% | $48,000 |
| $72,000 | $96,000 | $3,350 | + | 7.20% | $72,000 |
| $96,000 | $250,000 | $5,078 | + | 7.60% | $96,000 |
| $250,000 | and over | $16,782 | + | 7.90% | $250,000 |
ezPaycheck simplifies payroll calculations, including Hawaii's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
We strive to provide accurate and up-to-date Hawaii state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.
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