How Much Hawaii Taxes Its Residents Compared to Other States

by Samuel Stebbins, 24/7 Wall St. via The Center Square, Apr 21, 2023

As the sayings go, taxes are one of the few certainties in life, and the annual ritual of filling them with the IRS is not one that many people look forward to. The average American paid $10,845 in federal income taxes alone in 2020. But, while everyone is subject to the same federal tax laws, states also have the authority to set their own tax policy, and exactly how much you end up paying depends largely on where you live.

To raise revenue, state governments levy a broad range of taxes. These typically include taxes on property, income, and sales, and they vary considerably by state. In fact, in some parts of the country, residents are exempt from paying one or more of these tax categories altogether.

According to the Tax Foundation, an independent, nonprofit, tax policy research organization, state tax collections in 2021 totaled $5,582 per capita in Hawaii, the fourth highest among states.

The overall tax burden in Hawaii, which is a measure of taxes paid as a share of annual income, was 9.2% of the state's income per capita of $60,947, second only to Vermont.  For comparison, the per capita state income tax burden nationwide stands at 6.0%.

All data in this story is from the Tax Foundation report Facts & Figures 2023: How Does Your State Compare from the Tax Foundation, an independent, nonprofit, tax policy research organization. Figures do not include taxes levied at the local or federal level….

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