Hawaii Tax Department Releases Withholding Tax Guide Effective January 2026

The Hawaii Department of Taxation has released the state income tax withholding rates, methods, and tax tables, effective as of Dec. 5, 2025, for withholdings starting Jan. 1, 2026, and thereafter. The withholding rates will range from 1.4 percent to 7.9 percent. Employers whose annual withholding tax liability exceeds $40,000 are required to file their returns electronically. Beginning Jan. 1, 2026, electronic filing of Forms W-2 and HW-2 will be required for employers with 10 or more employees. [Haw. Dep’t of Tax’n, Employer Tax Guide, 12/02/25]

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