By Benjamin Finnerty (S), REALTOR® (RS-83812) with Keller Williams Realty Maui · Kīhei, Maui · 808-481-9748

Quick Answer: Hawaii income tax applies to residents on income from all sources, with rates from 1.4% up to 11%. If you move to Maui partway through the year, you’ll generally file as a part-year resident on Form N-15, reporting all income earned while a Hawaii resident plus any Hawaii-source income from before. The good news: Hawaii’s 2024 tax-cut law (Act 46) doubled the standard deduction for 2026 to $8,000 for single filers, $12,000 for heads of household and $16,000 for joint returns, and the brackets widen again in 2027. Being in Hawaii more than 200 days in a tax year creates a presumption that you’re a resident.

Hawaii has a reputation for high income taxes, and its top rate is among the highest in the country. But recent changes have lowered the bill for many households, and how much you owe in your move year depends a lot on timing. Here’s an overview of how it works. Every situation is different, so please confirm the details with a CPA or tax professional.

When do you become a Hawaii resident for income tax?

Hawaii’s tax rules look at domicile and at whether you’re living here for more than a temporary or transitory purpose. Under Hawaii Administrative Rules §18-235-1.07, someone who isn’t domiciled in Hawaii can still become a resident by being physically present here for purposes that aren’t temporary, such as taking a job expected to last a long or indefinite time.

The rule also sets a 200-day presumption: if you’re in Hawaii more than 200 days of the taxable year in total (not necessarily consecutive), you’re presumed to be a resident from the time you arrived. That presumption can be rebutted with evidence that you keep a permanent home elsewhere and your time in Hawaii is temporary.

Because residency depends on the facts of each case, talk with a tax professional about when your residency is likely to begin and how to document it.

How is your move year taxed?

In the year you move, you’ll typically be a part-year resident and file Form N-15, not Form N-11. The Department of Taxation’s guidance (Tax Facts 97-4) explains how it works:

• Column A: your total income from all sources for the full year, as if you’d been a resident all year.
• Column B: income you earned while a Hawaii resident, plus only Hawaii-source income from the part of the year you were a nonresident.

Your deductions and exemptions are then prorated by the ratio of Hawaii income to total income.

A few examples from the department’s guidance:

• Wages earned in California before you became a Hawaii resident are not reported in Column B.
• If you move to Hawaii on December 1 and have out-of-state rental income, only the portion for your residency period goes in Column B.
• A gain from selling Hawaii real property is Hawaii-source income, even for a nonresident.

Under Hawaii’s sourcing rules, income from personal services is sourced to where the work is performed. That matters for remote workers: once you live and work on Maui, your wages are generally Hawaii income even if your employer is on the mainland.

What are Hawaii’s income tax rates and deductions for 2026?

Act 46 (2024 Session Laws of Hawaii) phases in tax relief through 2031. For tax year 2026:

Filing status	Standard deduction (2026)
Single or married filing separately	$8,000
Head of household	$12,000
Married filing jointly	$16,000

That’s double the 2024-2025 amounts of $4,400, $6,424 and $8,800.

Rates still run from 1.4% to 11%. For 2025 and 2026, the 1.4% bracket covers the first $9,600 of taxable income for single filers ($19,200 joint), and the top 11% rate applies to taxable income over $325,000 single ($650,000 joint).

What changes in 2027 and beyond?

Under Act 46:

• 2027-2028: the 1.4% bracket widens to $14,400 single ($28,800 joint), and the 11% rate starts above $400,000 single ($800,000 joint). The standard deduction stays at the 2026 level in 2027, then rises in 2028 to $9,000 single, $13,500 head of household and $18,000 joint.
• 2029 and later: the brackets widen again, with the 11% rate starting above $475,000 single ($950,000 joint).
• 2030 and 2031: the standard deduction rises to $10,000 single in 2030 and $12,000 single ($24,000 joint) in 2031.

If you’re timing a move, these changes are worth factoring into your budget, especially if your income falls in the lower and middle brackets, where the deduction increases make the biggest difference.

How do income taxes fit into a Maui housing budget?

Income tax is one piece of the picture. When you’re planning a Maui purchase, also budget for property taxes (Maui’s rates depend on how a property is classified, including owner-occupied status), insurance, association dues and the island’s higher everyday costs. If you plan to keep a mainland home and rent it out, remember that rental income from out-of-state property becomes part of your Hawaii income once you’re a resident.

Sellers moving off island face a different set of rules, including Hawaii’s HARPTA withholding on sales by nonresidents. That’s worth planning for well before you list.

FAQ

Does Hawaii have a state income tax?
Yes. Rates range from 1.4% to 11% of taxable income.

What form do I file the year I move to Maui?
Part-year residents generally file Form N-15.

What is Hawaii’s standard deduction for 2026?
$8,000 for single filers, $12,000 for heads of household and $16,000 for joint returns.

If I work remotely for a mainland company, do I owe Hawaii tax?
Generally yes, once you’re a Hawaii resident or performing the work in Hawaii. Confirm your situation with a tax professional.

When am I presumed to be a Hawaii resident?
Hawaii presumes residency if you’re in the state more than 200 days in a taxable year, though the presumption can be rebutted.

Planning your move?

I’m not a tax advisor, but I can connect you with trusted local CPAs and lenders who know these rules well. If you’re thinking about buying on Maui and want help mapping out timing, budget and neighborhoods, reach out anytime.

Sources: Hawaii Department of Taxation (Announcement No. 2024-03; Tax Facts 97-4); Act 46, Session Laws of Hawaii 2024; Hawaii Administrative Rules §18-235-1.07.