Estate Tax in Hawaii

Overview

Hawaii is one of 13 jurisdictions in the United States that imposes its own state-level estate tax. If you are a resident of Hawaii, or if you own real or tangible personal property located in Hawaii, your estate may be subject to both the federal estate tax and the Hawaii estate tax upon your passing.

As of 2025-01-15, Hawaii has an estate tax exemption of $5,490,000. Estates valued above this threshold may be subject to estate tax rates ranging from 10% to 20%. The Hawaii estate tax is administered by the Hawaii Department of Taxation.

It is important to note that the Hawaii estate tax is separate from the federal estate tax, which has its own exemption amount of approximately $13.99 million (2026) and a top rate of 40%. Residents of Hawaii may need to file both state and federal estate tax returns if their estate exceeds the applicable thresholds. For more information about the federal estate tax, see our federal estate tax guide.

Quick Facts: Estate Tax in Hawaii

Estate Tax Exemption in Hawaii

The estate tax exemption in Hawaii is currently set at $5,490,000. This means that estates with a total gross value at or below this threshold are not subject to the Hawaii estate tax. Only the portion of the estate that exceeds the exemption amount is subject to taxation.

This exemption amount is separate from the federal estate tax exemption of approximately $13.99 million. Because the Hawaii exemption is lower than the federal exemption, some estates may owe state estate tax even if they are below the federal threshold.

The gross estate for Hawaii estate tax purposes generally includes all property owned by the decedent at death, including real estate, bank accounts, investments, retirement accounts, life insurance proceeds (if the decedent owned the policy), and other assets. Certain deductions, such as debts, funeral expenses, and charitable bequests, may reduce the taxable estate.

Estate tax exemption amounts may be adjusted periodically. Always verify the current exemption with the Hawaii Department of Taxation or consult a qualified tax professional.

Estate Tax Rates in Hawaii

Hawaii imposes estate tax at graduated rates ranging from 10% to 20%. The applicable rate depends on the total taxable value of the estate. Generally, larger estates are subject to higher marginal rates.

The top estate tax rate in Hawaii is 20%. For the complete rate schedule, including specific bracket amounts and marginal rates, consult the Hawaii Department of Taxation website or the relevant state statute.

In addition to the state estate tax, the estate may also be subject to the federal estate tax at rates up to 40%. The combined state and federal estate tax burden can be significant for large estates. However, state estate taxes paid are generally deductible on the federal estate tax return, which can reduce the overall tax liability.

Filing Requirements

If the gross estate of a Hawaii resident (or a non-resident with property in Hawaii) exceeds the exemption amount of $5,490,000, a state estate tax return must be filed with the Hawaii Department of Taxation. The return is generally due 9 months after date of death.

Extensions of time to file may be available upon request. However, any estate tax due must typically still be paid by the original deadline to avoid interest and penalties. The executor or personal representative of the estate is responsible for filing the return and paying any tax owed.

In addition to the state return, a federal estate tax return (IRS Form 706) must be filed if the gross estate exceeds the federal exemption amount. The federal return is also due 9 months after the date of death. For forms and instructions, visit the Hawaii Department of Taxation website and IRS Form 706.

Estate Tax vs Federal Estate Tax

Residents of Hawaii may be subject to both the state estate tax and the federal estate tax. The Hawaii estate tax has an exemption of $5,490,000 and rates up to 20%. The federal estate tax has a higher exemption of approximately $13.99 million but imposes rates up to 40%.

The federal estate tax exemption is set at approximately $13.99 million per individual for 2026. This amount is adjusted annually for inflation. Married couples can effectively shield up to approximately $27.98 million from federal estate tax through portability of the unused exemption.

For a comprehensive comparison of estate tax and inheritance tax, including which states impose each, see our Estate Tax vs Inheritance Tax guide. For details about the federal estate tax, visit our Federal Estate Tax page.

Estate Planning Considerations in Hawaii

Regardless of whether Hawaii imposes a state estate tax, Hawaii residents should consider comprehensive estate planning to protect their assets and minimize tax liability. Key strategies may include:

• Creating revocable living trusts to avoid probate and maintain privacy
• Establishing irrevocable trusts to remove assets from the taxable estate
• Making annual gifts within the federal gift tax exclusion ($18,000 per recipient in 2024)
• Utilizing the unlimited marital deduction for transfers between spouses
• Setting up charitable remainder trusts or charitable lead trusts
• Purchasing life insurance in an irrevocable life insurance trust (ILIT)
• Coordinating state and federal estate tax planning to maximize exemptions

Because Hawaii has its own estate tax with an exemption of $5,490,000, which is lower than the federal exemption, residents should pay particular attention to state-level planning. Credit shelter trusts and other strategies can help ensure both spouses' state exemptions are fully utilized.

This information is general in nature. Consult a qualified estate planning attorney or tax professional for advice tailored to your specific situation and goals.