Hawaii Paycheck Calculator

Use Hawaii Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.

What Are Payroll Taxes?

Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.

The Social Security tax is paid by the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.

Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.

Each state also has specific state payroll taxes that must be withheld and paid.

Hawaii Payroll Taxes

In addition to Social Security and Medicare, Hawaii assesses state income tax and state unemployment insurance taxes (UI).

State Income Taxes

Hawaii has a progressive state income tax system, with rates ranging from 1.4% to 16% depending on income. There are numerous income brackets, and employers should refer to the state’s withholding tables and guidelines to determine withholding amounts.

Unemployment Insurance Tax (UI)

State unemployment tax is an employer-paid tax and not withheld from employees. UI tax rates in Hawaii are determined annually for established businesses and have a maximum rate of 5.8%.

New Hawaii businesses are assigned a tax rate of 3%. The current taxable wage base for UI in Hawaii is $47,400. 

Included within employer unemployment taxes are contributions to Hawaii’s Employment and Training program (E&T). For detailed information, refer to the Department of Labor website. 

Paying Payroll Taxes

Just as you need an EIN to pay federal payroll taxes, in Hawaii you’ll need to register to pay state withholdings with the Department of Taxation. Filings are due quarterly, but payment due dates are based on the total withheld and can be semiweekly, monthly, or quarterly. 

Refer to the Employer’s Tax Guide for detailed instructions. To pay your quarterly state unemployment taxes (UI), sign in to your Department of Labor account. 

Using a Payroll Tax Service

In Hawaii, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.

You’ll just send over your digital timesheets and relevant information and the service provider will take care of the calculations, payments and taxes, freeing you up to focus on growing your business. 

We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!