StateSide

HI · payroll profile

Hawaii

Everything an out-of-state employer needs before running a Hawaii payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
Graduated to 11%
Reciprocal agreements
None
SUI wage base 2026
$64,500
Local income taxes
No

Income tax withholding

Imposes wage income tax Yes
Rate structure Graduated, top marginal rate 11%
Withholding certificate HW-4
Employee's Withholding Allowance and Status Certificate
Accepts federal Form W-4 No
Convenience-of-the-employer rule No
Nonresident withholding threshold 60 days
Per Hawaii Booklet A (Employer's Tax Guide), withholding is not required where the nonresident employee performs services in Hawaii for an aggregate of not more than 60 days during the calendar year and the employer does not reasonably expect the employee to exceed 60 days. Exemption is claimed/documented on Form HW-7 (Exemption from Withholding on Nonresident Employee's Wages). Does NOT apply to nonresident employees of a construction contractor working on a Hawaii construction project.
Local income taxes No
No county or municipal personal income taxes. Hawaii does impose a state Temporary Disability Insurance (TDI) employee contribution.

Reciprocity

States that exempt Hawaii residents

A Hawaii resident working in these states files that state's certificate and is taxed only by Hawaii.

District of Columbia

Unemployment insurance and paid leave

Taxable wage base 2026 $64,500
2025 base was $62,000.
New employer rate 2.4%
Rates shown include the 0.01% Employment and Training Assessment where applicable.
Experience rate range 0% – 5.6%
Experience-rating method reserve ratio
Employee UI contribution No
Paid family / medical leave Yes
Hawaii has mandatory Temporary Disability Insurance (medical/own-illness only - Hawaii has no state paid FAMILY leave program). Employers may withhold up to 0.50% of an employee's weekly wages, capped at $7.50 per week for 2026 (maximum weekly wage base $1,500.21).

Employer registration

Tax agency
Hawaii Department of Taxation
UI agency
Hawaii Department of Labor and Industrial Relations (DLIR)

Sources

files.hawaii.gov · tax.hawaii.gov · files.hawaii.gov · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov · labor.hawaii.gov

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.