Hawaii payroll taxes
Every tax withheld from a Hawaii paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: news.bloombergtax.com, files.hawaii.gov, labor.hawaii.gov, taxnews.ey.com.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Hawaii SUTA | — | 2.41% (new) | $64,500 |
| Temporary Disability Insurance | 0.5% | — | $78,011 |
| Hawaii income tax | 1.4%–11% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
Hawaii charges new employers 2.41% on the first $64,500 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0% to 5.6%. Schedule C, rates 0%-5.6%. The new employer rate is 2.4% + 0.01% E&T. Bloomberg's excerpt showed the E&T rate as '0.1%', but other sources say 0.01%, so verify.
Employment & Training (E&T) assessment 0.01% on the UI wage base. A UI Technology Special Fund tax was added in 2024. TDI is a separate program (employee pays up to 0.5%).
Register and file with the Hawaii unemployment tax agency.
Paid leave and disability programs
- Temporary Disability Insurance: employees pay 0.5% on wages up to $78,011 (maximum $390.00 a year). Employee pays up to 50% of plan cost, max 0.5% of weekly wages up to $1,500.21/week (max $7.50/week in 2026); employer pays the remainder (plan-dependent, so employerRate null). wageCap annualized from weekly base.
Income tax withholding
Hawaii has a graduated income tax with 12 brackets, from 1.4% up to 11% on taxable income over $325,000 for single filers.
Frequently asked questions
- What payroll taxes do employers pay in Hawaii?
- Social Security, Medicare, federal unemployment (FUTA) and Hawaii unemployment insurance (SUTA).
- What is the Hawaii SUTA wage base for 2026?
- $64,500 per employee.
- Does Hawaii require state income tax withholding?
- Yes. Employers withhold Hawaii income tax based on the employee's state withholding certificate or federal W-4.