Honolulu, HI Taxes 2025
Complete local tax guide and OBBBA calculator
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Honolulu Tax Overview 2025
Highest cost of living but lowest property taxes. Major tourism hub.
Local Income Tax
0%
City/county rate
Sales Tax
4.50%
State + local
Property Tax
0.29%
Effective rate
Median Home
$975,000
Home value
No Local Income Tax!
Honolulu does not impose a local income tax on residents, which means you only pay state income tax (if applicable) and federal taxes.
State Tax Information
Honolulu is located in Hawaii (1.4% - 11% state income tax)
💼 Honolulu Local Income Tax
Honolulu does not impose a local income tax on residents. Your income tax obligations are limited to state income tax (if applicable in Hawaii) and federal income tax.
This is good news for Honolulu residents, as it means one less tax to worry about compared to cities that do impose local income taxes.
Total Income Tax Burden in Honolulu
🛒 Honolulu Sales Tax 2025
The combined sales tax rate in Honolulu is 4.50%. This includes both the Hawaii sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Honolulu. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on Hawaii law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $2.25 | $52.25 |
| $100 | $4.50 | $104.50 |
| $500 | $22.50 | $522.50 |
| $1,000 | $45.00 | $1,045.00 |
🏠 Honolulu Property Tax 2025
The average effective property tax rate in Honolulu is 0.29%. Based on the median home value of $975,000, the typical homeowner pays approximately $2,828 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Honolulu based on school district and other taxing authorities.
Estimated Annual Property Tax in Honolulu
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $580 | $48 | ✓ Yes |
| $300,000 | $870 | $73 | ✓ Yes |
| $400,000 | $1,160 | $97 | ✓ Yes |
| $500,000 | $1,450 | $121 | ✓ Yes |
| $750,000 | $2,175 | $181 | ✓ Yes |
| $1,000,000 | $2,900 | $242 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Honolulu Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Honolulu Residents
Tourism and hospitality workers benefit significantly from tips deduction.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Honolulu resident.
Available OBBBA Deductions:
Calculate Your Honolulu Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Honolulu resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Honolulu?
The combined sales tax rate in Honolulu is 4.50%. This includes both state and local sales taxes.
Does Honolulu have a local income tax?
Honolulu has a local income tax of 0%. This is in addition to any state and federal income taxes.
What is the property tax rate in Honolulu?
The average effective property tax rate in Honolulu is 0.29%. On a home worth $975,000, you'd pay approximately $2,828 per year.
How do OBBBA deductions benefit Honolulu residents?
Tourism and hospitality workers benefit significantly from tips deduction. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.