Self-employment taxes in Hawaii
Hawaii uses a graduated income tax with rates from 1.4% to 11% across 12 brackets. Your self-employment income is taxed at these rates, on top of federal income tax and self-employment tax, after a state standard deduction of $4,400 for single filers and $8,800 for married couples.
- Structure: graduated, 12 brackets
- Rates: 1.4% to 11%
- Standard deduction: $4,400 single / $8,800 married
Hawaii income tax brackets (single filer)
| Rate | Taxable income |
|---|---|
| 1.4% | $0 – $9,600 |
| 3.2% | $9,600 – $14,400 |
| 5.5% | $14,400 – $19,200 |
| 6.4% | $19,200 – $24,000 |
| 6.8% | $24,000 – $36,000 |
| 7.2% | $36,000 – $48,000 |
| 7.6% | $48,000 – $125,000 |
| 7.9% | $125,000 – $175,000 |
| 8.25% | $175,000 – $225,000 |
| 9% | $225,000 – $275,000 |
| 10% | $275,000 – $325,000 |
| 11% | $325,000 and up |
Married-filing-jointly brackets differ; the calculator above uses the correct set for your filing status.
The federal taxes every self-employed person pays
No matter which state you're in, self-employment income carries federal self-employment tax of about 15.3% (12.4% Social Security up to the annual wage base, plus 2.9% Medicare), on top of federal income tax. You may also qualify for the 20% qualified business income (QBI) deduction, and you can deduct half of your self-employment tax. The calculator above includes all of this along with Hawaii's state tax.
Because you don't have an employer withholding taxes for you, you're generally expected to pay quarterly estimated taxes. A common rule of thumb is to set aside 25–30% of your net profit, but your exact number depends on your income and deductions, use the estimate above as your starting point.
Frequently asked questions
Do I pay Hawaii state tax on self-employment income?
Yes. Hawaii taxes self-employment income at graduated rates from 1.4% to 11%, after the state standard deduction, in addition to federal income tax and self-employment tax.
How much should I set aside for taxes in Hawaii?
Enter your profit above for a personalized number. As a rough guide, many self-employed people in Hawaii set aside 25–30% of net profit to cover federal and state taxes combined, but the calculator gives you a far more accurate figure.
Would an S-corp lower my taxes?
Possibly, if your profit is high enough. See the LLC vs S corp calculator to compare, or the full calculator to model your whole situation.