The tax burden in California is among the highest in the nation. The state has the highest top income tax rate in the country at 13.3%. California has a high income tax rate as well as a high sales tax rate of 7.25%, with some localities being able to add an additional 2.5%. California has high property tax rates as well, with an average effective rate of 0.77%.
Hawaii, on the other hand, has a top rate of 11% and a lower income tax than California. Hawaii, on the other hand, levies a greater sales tax than California. Hawaii has a 4% sales tax, but because the state also permits counties to tack on their own surcharges, the overall sales tax rate might go as high as 4.712%. Additionally, Hawaii’s property tax rates are rather high, with an average effective rate of 0.28%. Does Honolulu have no taxes?
In Honolulu, the capital of Hawaii, there are several taxes. Hawaii does not have a state sales tax, although the majority of goods and services in Honolulu are subject to a general excise tax. Honolulu’s general excise tax rate is 4.5%, which is less than the state’s top sales tax rate.
Food is not subject to a separate tax in Hawaii. However, the majority of products and services—including food—are subject to the general excise tax. Hawaii’s general excise tax rate varies per county, but it hovers around 4% on average.
Hawaii’s sales tax will be 4% as of 2022. County-specific surcharges, which can increase the overall tax rate to as much as 4.712%, can be added to the sales tax rate.
Hawaii is not regarded as a state that is tax-friendly. The state’s income tax rates are comparatively high, and depending on the county, the sales tax rate might be similarly high. Additionally, Hawaii’s property taxes are greater than the national average. Hawaii does give citizens some tax incentives, though. For instance, there is a tax credit for low-income households, and the state does not tax Social Security benefits.
Therefore, despite having similar high tax rates, California has greater income and property tax rates than Hawaii, whereas Hawaii has higher sales tax rates. Honolulu does not have a flat tax, however the general excise tax rate is less than the state’s top sales tax rate. Finally, while not being regarded as a tax-friendly jurisdiction, Hawaii does give people some tax benefits.
Hawaii is often seen as being more expensive to live in than California due to its higher cost of living, higher state income tax rates, and higher pricing for products and services, according to the tax comparison between Hawaii and California. Hawaii’s remote location and constrained land area also contribute to increased housing costs. It is crucial to remember that the cost of living might change depending on personal circumstances and lifestyle preferences.
Hawaii will have a $10.10 minimum wage as of January 1, 2021. Hawaii does, however, have several counties with their own minimum wage rates that may be greater than the state’s.