Key Takeaways
- Hawaii has the second-highest state income tax at 11%
- Hawaii uses a 200-day rule (same as Oregon)
- Geographic distance from Hawaii makes domicile change cleaner
- Military families stationed in Hawaii particularly benefit
Overview: Hawaii Tax Burden
Hawaii has the second-highest state income tax in the nation at 11%. Combined with high cost of living, many Hawaii residents are establishing Florida residency.
$6,000 - $35,000+
Annual savings depending on income level
Hawaii Tax Rates
| Taxable Income | Tax Rate |
|---|---|
| $0 - $2,400 | 1.4% |
| $2,401 - $4,800 | 3.2% |
| $4,801 - $9,600 | 5.5% |
| $9,601 - $14,400 | 6.4% |
| $14,401 - $19,200 | 6.8% |
| $19,201 - $24,000 | 7.2% |
| $24,001 - $36,000 | 7.6% |
| $36,001 - $48,000 | 7.9% |
| $48,001 - $150,000 | 8.25% |
| $150,001 - $175,000 | 9% |
| $175,001 - $200,000 | 10% |
| Over $200,000 | 11% |
Hawaii's 200-Day Rule
Like Oregon, Hawaii uses a 200-day threshold for statutory residency, not 183 days. This provides slightly more flexibility for part-year transitions.
Geographic Distance Advantage
The 5,000+ mile distance between Hawaii and Florida creates a cleaner break:
- Less likely to accidentally trigger statutory residency
- Clear physical separation from former state
- Harder for HI to argue you maintain a "permanent home" there
- Audit risk is lower than for CA or NY departures
Military Families: If you're military stationed in Hawaii, you can establish Florida domicile under SCRA. Your military pay becomes exempt from Hawaii's 11% tax immediately.
Properly Exiting Hawaii
- Establish Florida domicile (address, Declaration, DL, voter registration)
- Sell or rent Hawaii property
- Update all accounts to Florida address
- File HI part-year return (N-15) for move year
- Keep documentation of your move