Hawaii taxpayers shell out more than $5,500 in state and local taxes

by Merrilee Gasser, The Center Square

(The Center Square) – Hawaii has some of the nation’s highest total state tax collections per capita, according to a report.

In the Tax Foundation’s comparison of states with over 40 measures of tax rates, collections and burdens, Hawaii ranked 4th for state tax collections per person at $5,582. Its state revenue per capita is also among the highest at $12,113 in revenue per capita.

Hawaii’s state debt is also among the top five in the nation at $7,992 per capita and $11,879 when local debt is factored in as well.

Hawaii has the third highest state-local tax burden as a share of state income at a little over 14%, or $8,410 per capita. Its state and local tax collections per capita are the fifth highest in the nation at $7,480 per person. Similarly, Hawaii’s state and local revenue per capita is in the top six at $13,462 per capita.

Hawaii gets 20.8% of its state and local revenue from property taxes, 37% from the general sales tax, 21.7% from individual income taxes, 0.4% from the corporate income tax, and just over 20% from other taxes.

Groceries are included in Hawaii’s general sales tax.

On a scale of how each state’s tax laws affect economic performance, Hawaii had the ninth-worst business tax climates.

Hawaii collects an average of $2,327 per capita in state individual income taxes. Its state corporate income tax collects $133 per capita.

Hawaii has a state sales tax rate of 4% and an average local tax rate of 0.44%, making the combined rate 4.44%. It collects the second-highest amount in general sales taxes at $2,287 per capita and the highest in the nation for state and local general sales tax collections combined.

Hawaii has the broadest base for its sales tax breadth, which is the ratio of the implicit sales tax base to state personal income, at 111% and includes many business-to-business services.

Its state gasoline tax rate is the fifth highest at a total of $0.5535.

Hawaii’s share of state and local road spending covered by state and local tolls, user fees and user taxes are the second highest at a total of 77.8%. The U.S. average is 52.1%.

The state spirits excise tax rate is $5.98. The highest is Washington at $36.55, and the lowest is Missouri at $2.00. Hawaii’s wine excise tax rate is $1.38, and its beer excise tax is $0.93.

Hawaii’s state and local cell phone tax rates are among the ten lowest in the nation at 7.89%. The highest was Illinois at over 22%.

Hawaii’s state and local excise tax collections are the second highest at $1,049 per capita. The lowest is Arizona at $333 per capita.

However, for property taxes paid as a percentage of owner-occupied housing value, Hawaii had the lowest rate at 0.32%. State and local property tax collections are $1,556 per person.

Hawaii’s funded ratio of public pension plans ranked in the bottom five at 53%.

The state’s income per capita is $60,947. The highest is the District of Columbia at $96,477, and the lowest is Mississippi at $45,881.