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Could someone explain what taxes you pay in Hawaii. Examples would be appreciated.....
I live in Florida and we pay no state and no city income taxes. My home is 4,000sq ft and I pay $7,600 annually.
I have heard Hawaii has brutal income taxes but the property taxes are great. Can someone enlighten me and give me some examples of what I would be facing.
There is a 4% excise tax on EVERYTHING in Hawaii, that includes food and drugs (I'm pretty sure about the drugs, I'm certain on the food). There are also quite a few extra taxes that tourists get to pay, but as a resident you'd not pay those.
There are no cities at the governmental level in the state, it's all at the county and state level, but you get to pay state income tax and county property tax. Depending on what county you live in, the property taxes would be different and it is calculated by house value, not square feet. Currently on the Island of Hawaii there is discussion about raising the property taxes rather significantly although I've not been keeping track of any details on that.
Is there also a state or city sales tax and then excise tax on top of that? Would you have any idea of what the state income tax rates are? I know I can look it up but I thought someone where might just be able to answer it quickly.
We also pay property tax based on the value but I figured if I didn't put the size someone would come on here and ask how big the house is.
Why are they discussing raising property taxes? I would think in times like this, raising property taxes is not really a smart move. Here in Florida the Gov. is lowering them.
Anyway, thanks for the info. I just wanted to get an idea of how much more taxes are in Hawaii than in Florida.
The excise and income taxes ARE pretty brutal, however the property taxes on the BI are very low in comparison to other states. There is a homeowner's exemption that lowers the property taxes even lower if you live in the home and you are a state resident. You may pay less than $100/month depending on your circumstance.
While food IS taxed, a lot of people buy a large portion of their food on the black market, commonly called "farmer's markets" here. Other people exist in an even deeper underworld where they (don't tell anybody) grow their own fruits and vegetables.
Hawaii does not tax income derived from retirement annuities.
Thanks Shorty! That is exactly what I need. That will help a lot
Terracore, thanks for the info. Unfortunately I am still working so my wages would be taxed. I loved your "black market/underworld" post. That gave me a good laugh
Is there also a state or city sales tax and then excise tax on top of that?
There is no sales tax in Hawai'i, and there are no city governments. Everything is state and county, and county government only sets property tax rates.
What is hard for many to understand about Hawai'i's General Excise Tax (GET) is that it applies to both goods and services, and it includes such transactions as apartment rent. So even though it is a lower percentage rate than many states' Sales Taxes, it applies to many more transactions.
It SHOULD collect a lot more revenue than it does, but people don't seem to be lining up to pay up.
It comes up all the time in the press, in various ways, that a whole lot of people in Hawai'i don't pay GET or TAT on their rental incomes. Here's one example...
Quote:
But Patrick Sullivan, principal broker and owner of Lahaina-based Sullivan Properties, said the state is losing millions because nonresident owners aren't paying the proper taxes, something owners like Kohler say simply isn't true. "Funds not being collected have to exceed $30 million a year and growing," Sullivan said.
It's unclear how much the state may be losing through unpaid taxes. There's no fiscal information presented with any of the legislation.
But a conference committee report on one of the bills cites a 2005 study by the Hawaii Tourism Authority that estimated as many as 9,000 rental units in Hawaii may not be complying with tax law.
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