Hawaii Capital Gains Tax (2026)
Hawaii taxes capital gains as ordinary income on a graduated scale from 1.4% up to a top rate of 11%. Run your own numbers with the free capital gains tax calculator, which estimates federal, NIIT, and Hawaii tax together.
In short: federal long-term rates of 0%, 15%, or 20% apply everywhere. Hawaii adds state tax on top, at up to 11%.
How Hawaii treats capital gains
Hawaii taxes capital gains as ordinary income on a graduated scale from 1.4% up to a top rate of 11%. The estimate subtracts Hawaii's standard deduction ($4,400 single / $8,800 married).
Good news if you hold long. Hawaii gives long-term gains a partial exclusion or reduced rate that this site's flat estimate does not model, so your actual Hawaii tax on a long-term gain may be lower than the ordinary-income estimate shown by the calculator.
2026 Hawaii income tax brackets
| Taxable income | Rate |
|---|---|
| $0 – $9,600 | 1.4% |
| $9,600 – $14,400 | 3.2% |
| $14,400 – $19,200 | 5.5% |
| $19,200 – $24,000 | 6.4% |
| $24,000 – $36,000 | 6.8% |
| $36,000 – $48,000 | 7.2% |
| $48,000 – $125,000 | 7.6% |
| $125,000 – $175,000 | 7.9% |
| $175,000 – $225,000 | 8.25% |
| $225,000 – $275,000 | 9% |
| $275,000 – $325,000 | 10% |
| Over $325,000 | 11% |
Single-filer taxable income. Married thresholds are doubled.
A worked example
Say you are a single filer in Hawaii with $60,000 of taxable income who sells stock held over a year for a $25,000 long-term gain. Federal tax on the gain is $3,750 (all of it lands in the 15% bracket at this income; no NIIT applies below $200,000 MAGI). Hawaii adds an estimated $1,900, for a combined $5,650, an effective 22.6% on the gain. These figures use the same math as the calculator, 2026 federal brackets per IRS Rev. Proc. 2025-32, and state figures from the Tax Foundation's State Individual Income Tax Rates and Brackets, 2026.
Frequently asked questions
Does Hawaii tax capital gains?
Yes. Hawaii taxes capital gains as ordinary income. Hawaii taxes capital gains as ordinary income on a graduated scale from 1.4% up to a top rate of 11%.
What will I pay on a long-term gain in Hawaii?
Combined, our worked example ($25,000 long-term gain on $60,000 of income, single) comes to $5,650: $3,750 federal plus $1,900 Hawaii tax, an effective 22.6%.
Do I still owe federal capital gains tax in Hawaii?
Yes. Federal capital gains tax (0%, 15%, or 20% long-term, ordinary rates short-term, plus the 3.8% NIIT for high earners) applies no matter your state. The free calculator estimates federal, NIIT, and Hawaii tax together.
More
- Every state's capital gains treatment
- Capital gains tax explained: short-term vs long-term
- Neighbors alphabetically: Georgia · Idaho
This page is general information, not tax, legal, or financial advice. Rates and rules can change and depend on your situation. Confirm details with a tax professional, the IRS, or your state's revenue department.
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