State retirement taxes · 2026
Does Hawaii tax retirement income?
Short answer: Partly. Hawaii does not tax Social Security benefits. All employer-funded pensions — public and private — are exempt at any age.
What’s taxed in Hawaii
2026 rules.
- Social SecurityNot taxed
- Hawaii does not tax Social Security benefits.
- PensionsNot taxed
- Employer-funded pensions, public or private, are not taxed.
- IRA & 401(k) withdrawalsPartly taxed
- IRA withdrawals are taxed; in 401(k)-type plans only the part from your own salary deferrals is taxed.
- Military retirement payNot taxed
- Military pensions are fully exempt, like other employer-funded public pensions.
- Income tax rate11% top
- Twelve brackets from 1.4% to 11% for 2025–2026; the 11% rate applies above $325,000 single or $650,000 joint.
Does Hawaii tax Social Security?
Hawaii does not tax Social Security benefits.
Social Security and first-tier Railroad Retirement benefits are fully exempt.
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in Hawaii?
Employer-funded pensions, public or private, are not taxed.
Hawaii does not tax qualifying distributions from employer-funded pension plans. Public plans (federal civil service, military, state or county) are exempt unless you made voluntary elective contributions. Private plans are exempt if you did not contribute; if you did, the part from your own contributions is taxed (Schedule J). Payments must be for retirement, disability or death — required minimum distributions at 73 qualify, but early distributions hit with the 10% federal penalty are taxable.
Public vs. private pensions: Both are exempt when employer-funded; the share you funded yourself is taxable.
Are IRA and 401(k) withdrawals taxed in Hawaii?
IRA withdrawals are taxed; in 401(k)-type plans only the part from your own salary deferrals is taxed.
Hawaii treats IRAs and self-funded annuities as your own investments, so their distributions are taxable. In 401(k), 457, TSP and SARSEP plans, the employee-deferral portion is taxable, while employer-contribution portions paid at retirement are excludable. A rollover IRA keeps the character of the plan it came from.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in Hawaii?
Military pensions are fully exempt, like other employer-funded public pensions.
What is Hawaii’s income tax rate?
12 brackets, topping out at 11%.
Twelve brackets from 1.4% to 11% for 2025–2026; the 11% rate applies above $325,000 single or $650,000 joint. Brackets widen again in 2027 and 2029 (for 2027 the 11% rate starts above $400,000 single, $800,000 joint).
2026 brackets. Each rate applies to taxable income above the amount shown.
| Single | Married, joint | Rate |
|---|---|---|
| $0 | $0 | 1.4% |
| $9,600 | $19,200 | 3.2% |
| $14,400 | $28,800 | 5.5% |
| $19,200 | $38,400 | 6.4% |
| $24,000 | $48,000 | 6.8% |
| $36,000 | $72,000 | 7.2% |
| $48,000 | $96,000 | 7.6% |
| $125,000 | $250,000 | 7.9% |
| $175,000 | $350,000 | 8.25% |
| $225,000 | $450,000 | 9% |
| $275,000 | $550,000 | 10% |
| $325,000 | $650,000 | 11% |
Standard deduction and exemptions
The standard deduction nearly doubles in 2026: $8,000 single, $16,000 joint, $12,000 head of household (2025: $4,400 / $8,800 / $6,424). It rises to $9,000 / $18,000 / $13,500 in 2028–29, $10,000 / $20,000 / $15,000 in 2030 and $12,000 / $24,000 / $18,000 from 2031. Personal exemption: $1,144 per person.
What tax breaks do seniors get in Hawaii?
Each filer 65 or older gets an additional $1,144 personal exemption. The pension exclusion has no age requirement. Hawaii uses its own standard deduction; we could not confirm whether it allows the federal $6,000 senior deduction.
What changed for 2026?
Act 46 (2024), already in law: the standard deduction rises to $8,000 / $16,000 in 2026 and keeps stepping up through 2031, and the brackets widen in 2027 and 2029. A 2024 proposal to limit the pension exclusion to Hawaii service was not found enacted.
Rates and the 2026 standard deduction come from the Hawaii Revised Statutes; exclusions from the 2025 N-11 instructions.
What we couldn’t confirm
- Hawaii’s tax department has not said whether the federal $6,000 senior deduction applies; we do not count it.
How Hawaii compares
Hawaii has no land border with another state, so here are other states we rate “Very friendly”.
- HawaiiThis pageVery friendlySocial Security Not taxedTop rate: 11% top
- AlabamaVery friendlySocial Security Not taxedTop rate: 5% top
- ColoradoVery friendlySocial Security Partly taxedTop rate: 4.4% flat
- GeorgiaVery friendlySocial Security Not taxedTop rate: 4.99% flat
- IllinoisVery friendlySocial Security Not taxedTop rate: 4.95% flat
- IowaVery friendlySocial Security Not taxedTop rate: 3.8% flat
State tax is half the picture — check the federal side
Hawaii retirement tax questions
Is Hawaii tax-friendly for retirees?
We rate Hawaii “Very friendly” for 2026. Hawaii does not tax Social Security benefits. All employer-funded pensions — public and private — are exempt at any age. The top income tax rate is 11%.
Are required minimum distributions (RMDs) taxed in Hawaii?
RMDs are withdrawals from IRAs and 401(k)-type plans, so they follow Hawaii’s rules for those accounts. IRA withdrawals are taxed; in 401(k)-type plans only the part from your own salary deferrals is taxed.
Is military retirement pay taxed in Hawaii?
No. Military pensions are fully exempt, like other employer-funded public pensions.
What is Hawaii’s income tax rate for 2026?
Twelve brackets from 1.4% to 11% for 2025–2026; the 11% rate applies above $325,000 single or $650,000 joint. Brackets widen again in 2027 and 2029 (for 2027 the 11% rate starts above $400,000 single, $800,000 joint).
Sources for Hawaii
Primary sources only. We re-check them whenever an agency publishes new figures.
- State
- State
- State
- State
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