Hawaii has no state exam and no continuing education mandate for non-credentialed paid preparers, but it has two registration requirements and one costly trap that catches nearly every preparer who relocates from the mainland or begins serving Hawaii clients for the first time. The trap is the General Excise Tax: every dollar you earn preparing Hawaii returns is subject to GET at a combined 4.5% rate, owed regardless of profitability, and assessed retroactively if you begin taking clients without a GET license. Beyond that registration, Hawaii offers a distinctive client landscape: a military community where retirement pay is fully exempt from state income tax, a 12-bracket rate structure topped at 11%, a near-doubling of the standard deduction taking effect for TY2026, and complete non-conformity with the OBBBA tip and overtime deductions that millions of clients assume apply at the state level. This guide covers every requirement for Hawaii paid preparers serving TY2025 and TY2026 returns.
Does Hawaii Require a State Tax Preparer License?
Hawaii does NOT require non-credentialed paid tax preparers to pass a state exam or complete state-mandated continuing education. No confirmed bill enacting preparer licensing for non-credentialed preparers was identified from the 2025 or 2026 Hawaii legislative sessions. (Verify against any late-session 2026 activity before relying on this.) However, three registrations are required before you serve a single Hawaii client.
1. Federal PTIN (Required by Hawaii Statute)
Most preparers know the federal PTIN requirement. What many miss is that Hawaii codified the same mandate in state law: HRS 231-15.4 (enacted by Act 198, SLH 2013) requires every paid preparer to hold a valid PTIN and include it on every Hawaii return or claim for refund prepared for compensation. The penalty for violation is $100 per violation for the first 100 violations, $500 per violation for violations 101 through 500, and $1,000 per violation for all subsequent violations. The PTIN fee for the current cycle is $19.75 per year, renewed at irs.gov/ptin.
2. Hawaii VPID (Verified Practitioner Identification Number)
Since 2017, every paid tax representative must register for a Hawaii Verified Practitioner ID (VPID) before representing any taxpayer before the Hawaii Department of Taxation (DOTAX). This applies to any person who prepares returns for compensation, not just credentialed professionals. No other state requires this specific registration.
- Application: Form PPS-12 (Verified Practitioner Registration Application, Rev. 2022) or online at Hawaii Tax Online (tax.hawaii.gov)
- Fee: None
- Processing time: Approximately 7 business days
File the VPID application before you take your first Hawaii client. Processing takes approximately a week, so do not wait until you have a return on your desk.
3. GET License (Required Before Your First Dollar)
Tax preparation is a professional service subject to Hawaii's General Excise Tax. Before earning any income from Hawaii clients, you must register for a GET license via Form BB-1 (State of Hawaii Basic Business Application), one-time fee of $20. Full details on GET rates, filing frequencies, and the consequences of non-registration are in the GET section below. This is the registration most preparers miss.
The General Excise Tax (GET): The Single Most Expensive Mistake
Hawaii does not have a retail sales tax. In its place, the state imposes the General Excise Tax on all business gross receipts, including professional services. Tax preparation is a service and is taxable at the 4% retail rate plus a 0.5% county surcharge, currently in effect in all four counties (Honolulu, Maui, Hawaii, Kauai). The combined effective rate is 4.5% in all counties as of 2026.
GET is not a sales tax. It is a tax on the privilege of doing business in Hawaii, owed by you, not collected from your client. You may pass it on to clients as a visible line item on your invoice using the standard pass-on rate of 4.712%, but you are liable for it regardless of whether you itemize it or absorb it. If you absorb the GET and do not itemize it, you still owe it on every dollar collected. There is no deduction for your own expenses or labor costs: GET is calculated on gross receipts.
No equivalent obligation exists in any other state. Mainland preparers who relocate to Hawaii, and new Hawaii residents who begin preparing returns for compensation, are regularly assessed retroactive GET with interest at 8% per annum plus penalties because they did not know the obligation existed.
GET Registration
- Form BB-1 (State of Hawaii Basic Business Application)
- Fee: $20 one-time
- Online (Hawaii Tax Online): 5 to 7 business days processing
- Mail or drop-off: 4 to 6 weeks
- In-person at a DOTAX office: Immediate
Register before earning the first dollar from any Hawaii client. Failure to register does not eliminate the liability: DOTAX will assess GET back to the inception of your business activity, plus interest and penalties.
GET Filing Frequency and Forms
Your filing frequency depends on your annual GET liability:
| Annual GET Liability | Filing Frequency | Due Date |
|---|---|---|
| $4,000 or more | Monthly | 20th of the following month |
| $2,000 to $3,999 | Quarterly | 20th of the following month |
| Under $2,000 | Semi-annually | 20th of the following month |
All GET filers, regardless of frequency, must also file an annual reconciliation on Form G-49 by April 20. Periodic returns are filed on Form G-45.
Practice note: A solo preparer bringing in $80,000 in preparation fees owes approximately $3,600 in GET annually (4.5% of $80,000). At that volume the filing frequency is monthly. Budget for this obligation from day one, and decide before your first billing cycle whether you will itemize the 4.712% pass-on charge to clients or absorb GET as a cost of doing business.
Hawaii Individual Income Tax for TY2025
Rate Structure: 12 Brackets, Top Rate 11%
Hawaii has 12 income tax brackets for TY2025, more than any other U.S. state. Rates range from 1.4% to 11%. The 11% top rate applies to taxable income above $325,000 for single filers and above $650,000 for joint filers.
| Taxable Income | Tax |
|---|---|
| Not over $9,600 | 1.4% of income |
| $9,601 to $14,400 | $134 + 3.2% over $9,600 |
| $14,401 to $19,200 | $288 + 5.5% over $14,400 |
| $19,201 to $24,000 | $552 + 6.4% over $19,200 |
| $24,001 to $36,000 | $859 + 6.8% over $24,000 |
| $36,001 to $48,000 | $1,675 + 7.2% over $36,000 |
| $48,001 to $125,000 | $2,539 + 7.6% over $48,000 |
| $125,001 to $175,000 | $8,391 + 7.9% over $125,000 |
| $175,001 to $225,000 | $12,341 + 8.25% over $175,000 |
| $225,001 to $275,000 | $16,466 + 9% over $225,000 |
| $275,001 to $325,000 | $20,966 + 10% over $275,000 |
| Over $325,000 | $25,966 + 11% over $325,000 |
| Taxable Income | Tax |
|---|---|
| Not over $19,200 | 1.4% of income |
| $19,201 to $28,800 | $269 + 3.2% over $19,200 |
| $28,801 to $38,400 | $576 + 5.5% over $28,800 |
| $38,401 to $48,000 | $1,104 + 6.4% over $38,400 |
| $48,001 to $72,000 | $1,718 + 6.8% over $48,000 |
| $72,001 to $96,000 | $3,350 + 7.2% over $72,000 |
| $96,001 to $250,000 | $5,078 + 7.6% over $96,000 |
| $250,001 to $350,000 | $16,782 + 7.9% over $250,000 |
| $350,001 to $450,000 | $24,682 + 8.25% over $350,000 |
| $450,001 to $550,000 | $32,932 + 9% over $450,000 |
| $550,001 to $650,000 | $41,932 + 10% over $550,000 |
| Over $650,000 | $51,932 + 11% over $650,000 |
| Taxable Income | Tax |
|---|---|
| Not over $14,400 | 1.4% of income |
| $14,401 to $21,600 | $202 + 3.2% over $14,400 |
| $21,601 to $28,800 | $432 + 5.5% over $21,600 |
| $28,801 to $36,000 | $828 + 6.4% over $28,800 |
| $36,001 to $54,000 | $1,289 + 6.8% over $36,000 |
| $54,001 to $72,000 | $2,513 + 7.2% over $54,000 |
| $72,001 to $187,500 | $3,809 + 7.6% over $72,000 |
| $187,501 to $262,500 | $12,587 + 7.9% over $187,500 |
| $262,501 to $337,500 | $18,512 + 8.25% over $262,500 |
| $337,501 to $412,500 | $24,699 + 9% over $337,500 |
| $412,501 to $487,500 | $31,449 + 10% over $412,500 |
| Over $487,500 | $38,949 + 11% over $487,500 |
Standard Deduction: TY2025 vs. TY2026 (Major Planning Event)
Hawaii's standard deduction for TY2025 is significantly below the federal level. For TY2026, Act 46, SLH 2024 (the Green Affordability Plan II) nearly doubles it. This is one of the most consequential client planning changes in the current filing cycle.
| Filing Status | TY2025 | TY2026 |
|---|---|---|
| Single / MFS | $4,400 | $8,000 (+82%) |
| Head of Household | $6,424 | $12,000 (+87%) |
| Joint / Surviving Spouse | $8,800 | $16,000 (+82%) |
The bracket thresholds themselves do not change in TY2026; the next bracket expansion is scheduled for TY2027. The phase-in continues through 2031: single filers reach $10,000 in TY2029 and $12,000 in TY2031; joint filers reach $20,000 in TY2029 and $24,000 in TY2031.
For TY2026 returns filed in 2027, many clients who historically itemized on their Hawaii return will find the standard deduction more advantageous. This is a planning conversation to have with every Hawaii client now.
Personal Exemption
The personal exemption for TY2025 is $1,144 per person. Taxpayers age 65 or older receive a doubled exemption of $2,288. An enhanced exemption of $7,000 applies for blind, deaf, or disabled individuals. The TY2026 personal exemption amount has not been published on the DOTAX site as of the research date for this guide; verify with DOTAX at tax.hawaii.gov before filing TY2026 returns.
Hawaii Filing Deadline: April 20
Hawaii individual income tax returns are due April 20, not April 15. An automatic 6-month extension is available through October 20 if the taxpayer is due a refund or makes a proper estimated payment by April 20.
Key Tax Rules for Hawaii Preparers
Social Security: Fully Exempt
Hawaii fully exempts Social Security benefits from state income tax under HRS 235-7(a)(3). There is no income threshold, no phase-in, and no portion of Social Security is taxable at the state level regardless of the taxpayer's total income. This is one of the broadest Social Security exemptions in the country and a meaningful benefit for clients in all income ranges.
Military Retirement: Fully Exempt (Critical for Hawaii Practitioners)
Hawaii fully exempts military retired pay from state income tax under HRS 235-7(a)(3). The exemption covers all military retirement pay from any branch (Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force), disability retirement pay, Survivor Benefit Plan (SBP) annuities, Reserve Component Survivor Benefit Plan (RCSBP) annuities, and Retired Serviceman's Family Protection Plan (RSFPP) annuities.
Hawaii has one of the largest military populations per capita in the United States. Preparers serving clients near Joint Base Pearl Harbor-Hickam, Schofield Barracks, Marine Corps Base Hawaii (Kaneohe Bay), or Coast Guard Sector Honolulu need to know this rule precisely. A military retiree drawing $60,000 in retired pay owes zero Hawaii state income tax on that income.
Active duty pay earned while serving on orders outside Hawaii is also excludable for Hawaii resident service members. Hawaii National Guard and Reserve members may exclude the first $8,636 of service income for TY2025 (verify this figure; sources vary slightly). TSP distributions, by contrast, are fully taxable in Hawaii.
Spousal residency note: Military spouses under the Military Spouses Residency Relief Act (MSRRA) may maintain their home-state domicile while stationed in Hawaii, which determines which state return they must file for earned income. This is a first-interview question for every new military family client.
Federal Civilian Pensions: Exempt (TSP Taxable)
Hawaii does not tax CSRS or FERS federal civil service defined benefit pension payments. The exemption under HRS 235-7(a)(3) covers the employer-funded portion of federal civilian retirement, the same provision covering military retirement. This is a significant benefit for the large federal civilian workforce at Pearl Harbor, Hickam, and other installations on Oahu.
Critical distinction: TSP (Thrift Savings Plan) distributions are taxable in Hawaii. The exemption covers defined benefit pension payments, not employee-funded retirement account withdrawals. A FERS retiree drawing a $40,000 annual FERS annuity pays zero Hawaii tax on that income, but their $15,000 in TSP distributions is fully taxable at ordinary Hawaii rates.
Capital Gains: 7.25% Maximum Rate and HARPTA
Hawaii taxes long-term capital gains at a preferential maximum rate of 7.25%, separate from the 11% top ordinary income rate. Short-term gains are taxed as ordinary income.
Hawaii conforms to the federal 1031 exchange rules; qualifying like-kind exchanges defer both federal and Hawaii capital gains. However, Hawaii's Hawaii Real Property Tax Act (HARPTA) applies to nonresident sellers of Hawaii real property. When a nonresident sells Hawaii real property, the buyer must withhold 7.25% of the gross sales price at closing. Form N-289 (Withholding Certificate) can be filed at closing to claim an exemption when the seller qualifies under the 1031 rules and no gain must be recognized.
For preparers with clients entering or exiting Hawaii real estate through 1031 exchanges, the N-289 must be filed before closing. Missing the HARPTA exemption certificate means 7.25% of the gross sales price is withheld at closing and must be claimed as a credit or refunded through the N-15 return, which can create significant cash flow disruption for the client.
Federal Income Tax Deductibility (Income-Tested)
Hawaii allows a limited itemized deduction for federal income taxes paid. Unlike most states, this is a genuine deduction, not a credit. However, it is only available to lower-income taxpayers. Taxpayers at or above these federal AGI thresholds lose the deduction entirely:
| Filing Status | Federal AGI at or Above Which Deduction is Disallowed |
|---|---|
| Single / Married Filing Separately | $100,000 |
| Head of Household | $150,000 |
| Married Filing Jointly / Surviving Spouse | $200,000 |
Taxpayers above these thresholds receive no Hawaii deduction for federal taxes paid. You also cannot claim both the federal income tax deduction and the Hawaii tax credit under HRS 235-55 for the same amounts.
Hawaii State EITC: 40% of Federal, Fully Refundable
Hawaii's refundable state Earned Income Tax Credit equals 40% of the federal EITC (IRC Section 32). The credit was made permanent by Act 114, SLH 2022, increased from 20% to 40% by Act 163, SLH 2023 (effective TY2023 forward), and is governed by HRS 235-55.75.
A change effective for tax years after December 31, 2024 (Act 25, SLH 2025): nonresidents and part-year residents who claim the EITC must now adjust the credit using the ratio of Hawaii AGI to federal AGI. This affects hospitality workers, seasonal employees, and military spouses who spend only part of the year in Hawaii. Apply this proration on Form N-15 before claiming the Hawaii EITC.
Local Income Taxes: None
Hawaii has no county-level income tax. The four counties (Honolulu, Hawaii, Maui, Kauai) do not levy a separate income tax. All Hawaii individual income tax is filed only with DOTAX at the state level. Counties do impose surcharges on the GET and TAT, and they levy property taxes, but these are not income taxes.
OBBBA Non-Conformity: What Does Not Apply on Hawaii Returns
Hawaii does NOT conform to the One Big Beautiful Bill Act (OBBBA, signed July 4, 2025) for individual income tax purposes. Hawaii uses static IRC conformity with a conformity date of January 1, 2025, which predates OBBBA enactment. The following federal OBBBA provisions do not apply on Hawaii state returns:
- Tip income deduction: The federal deduction of up to $25,000 annually for qualified tips (TY2025 through TY2028) does not apply in Hawaii. All tip income remains fully taxable at ordinary Hawaii rates. A hotel worker in Waikiki claiming the federal tip deduction still owes Hawaii income tax on every dollar of tips.
- Overtime pay deduction: The federal deduction of up to $12,500 (single) or $25,000 (joint) for qualified overtime compensation does not apply in Hawaii. Overtime is fully taxable state income.
- QBI deduction (IRC Section 199A): Hawaii has long decoupled from the federal qualified business income deduction. No state-level QBI deduction exists on Hawaii returns.
- Enhanced federal standard deduction: The permanently increased and inflation-adjusted federal standard deduction from OBBBA does not control Hawaii's standard deduction. Hawaii uses its own schedule under Act 46, SLH 2024 (see Section 3 above).
- Bonus depreciation (Section 168(k)): Hawaii's conformity position on OBBBA's permanent 100% bonus depreciation is flagged for verification with DOTAX. Hawaii has historically added back federal bonus depreciation; confirm the current treatment before filing any return relying on it.
Practice note: Every OBBBA-impacted client has a federal/state difference on the Hawaii return. A hospitality worker who deducts $15,000 in tips federally still owes Hawaii tax on all $15,000. A contractor claiming full federal bonus depreciation may face a Hawaii addback. Reconcile federal Schedule 1 adjustments against Hawaii's conformity position on every affected return.
Hawaii E-File Requirements
Paid Preparer Individual Returns: Verify with DOTAX
Hawaii participates in the IRS Modernized e-File (MeF) program. However, DOTAX's mandatory e-file page (tax.hawaii.gov/geninfo/efile-mandate/) addresses business tax types and does not explicitly state a volume-based threshold for paid preparers filing Form N-11 or N-15. No confirmed statutory paid-preparer e-file mandate equivalent to the IRS 11-return threshold has been identified. Before relying on the absence of a mandate, confirm directly with DOTAX at (808) 587-4242.
W-2 / HW-2 Information Return E-File: 10 or More, Effective January 1, 2026
Effective January 1, 2026, employers filing 10 or more Form W-2 and/or Form HW-2 in a calendar year must file electronically. This was announced in DOTAX Announcement 2025-05 (July 30, 2025). For preparers handling payroll or W-2 preparation for employer clients, this threshold affects any client with 10 or more employees.
Penalty for Required E-File Non-Compliance
The penalty for failing to comply with a required e-file obligation is 2% of the amount of tax required to be shown on the return, in addition to other applicable penalties and interest. Statutory basis: HRS 231-8.5.
Starting a Tax Preparation Business in Hawaii
Forming a business entity in Hawaii involves the DCCA (Department of Commerce and Consumer Affairs) for the LLC and DOTAX for the GET and VPID registrations.
LLC Formation
- Articles of Organization filing fee: $50
- Filing authority: Hawaii DCCA, Business Registration Division (cca.hawaii.gov/breg)
- Annual report fee: $15 (or $25 with expedited review)
- Annual report due date: Based on the anniversary quarter of formation. Confirm exact due date rules with DCCA before your first report is due, as published sources vary.
Year 1 Registration Cost Summary
| Item | Cost | Authority |
|---|---|---|
| LLC Articles of Organization | $50 | DCCA |
| GET License (Form BB-1) | $20 (one-time) | DOTAX |
| VPID Registration (Form PPS-12) | No fee | DOTAX |
| Federal PTIN (annual) | $19.75/year | IRS |
| Total Year 1 (approximate) | ~$90 (without LLC annual report) |
Note that GET itself is not a registration cost; it is an ongoing tax obligation on your gross receipts. Budget for it as an operating expense from day one.
High-Value Client Niches in Hawaii
Military Communities
Hawaii has one of the largest military populations per capita in the United States. Key installations include Joint Base Pearl Harbor-Hickam (Navy/Air Force), Schofield Barracks (Army), Marine Corps Base Hawaii at Kaneohe Bay, and Coast Guard Sector Honolulu. Military retirees drawing pension income pay zero Hawaii state income tax on that income under HRS 235-7(a)(3). Combined with the Social Security exemption, a retired senior enlisted member or officer with significant pension income can have a dramatically lower Hawaii tax bill than a civilian with comparable income. This is a powerful value proposition. Know the MSRRA spousal residency rules as a first-interview standard for every new military family.
Federal Civilian Employees
The large federal civilian workforce at Pearl Harbor, Hickam, and other installations provides a steady client base. CSRS and FERS pensions are exempt; TSP distributions are taxable. Many federal civilians also have small side businesses subject to GET, and most are first-time Hawaii filers who are unaware of the GET obligation on any self-employment income they earn.
Tourism and Hospitality Workers
Hawaii's largest private employment sector. Tip income is fully taxable in Hawaii; the OBBBA tip deduction does not apply. Overtime is fully taxable. Seasonal workers and part-year residents must file Form N-15. Any hospitality worker with self-employment income (including contract entertainment or service work) also owes GET on that income.
Real Estate Investors and 1031 Exchange Clients
Hawaii real estate is among the most expensive in the nation, creating large embedded capital gains. Long-term gains are taxed at a maximum 7.25% rate. Hawaii conforms to 1031 exchange treatment for deferral. For nonresident sellers, HARPTA withholding at 7.25% of gross sales price applies at closing; Form N-289 claims the exemption for qualifying 1031 exchanges. Always coordinate with the closing agent on HARPTA well before the closing date.
Small Business Owners: GET Compliance
The most common compliance failure among Hawaii small business owners is failure to register for and remit GET. This applies to tutors, contractors, online service providers, yoga instructors, music teachers, and any other person earning income from services in Hawaii. Ask every new small business client whether they have a GET license. If they do not, help them register before their next billing cycle. DOTAX assesses GET retroactively to the inception of the business, plus 8% annual interest and penalties.
Vacation rental owners face a dual obligation: GET at 4.712% pass-on rate, and the Transient Accommodations Tax (TAT) at 11% state rate (effective January 1, 2026 under Act 96, SLH 2025, subject to verification of enjoinment status), plus county TAT surcharges. Unlike most states, neither Airbnb nor Vrbo is authorized to collect and remit GET or TAT on behalf of Hawaii hosts. Every short-term rental owner is personally responsible for registration and remittance. Periodic TAT returns are filed on Form TA-1; annual reconciliation on Form TA-2.
Hawaii Tax Forms Reference
| Form | Purpose |
|---|---|
| N-11 | Individual Income Tax Return (full-year Hawaii residents) |
| N-15 | Individual Income Tax Return (nonresidents and part-year residents) |
| BB-1 | State of Hawaii Basic Business Application (GET/TAT license registration) |
| G-45 | Periodic General Excise / Use Tax Return (monthly or quarterly) |
| G-49 | Annual General Excise / Use Tax Return and Reconciliation (due April 20) |
| PPS-12 | Verified Practitioner Registration Application (VPID) |
| N-848 | Power of Attorney (for preparer to represent clients before DOTAX) |
| N-288 | Hawaii Withholding Tax Return for Dispositions by Nonresident Persons of Hawaii Real Property (HARPTA) |
| N-289 | Certification for Exemption from HARPTA Withholding (including 1031 exchange exemptions) |
| TA-1 | Periodic Transient Accommodations Tax Return (vacation rental clients) |
| TA-2 | Annual Transient Accommodations Tax Return and Reconciliation |
Frequently Asked Questions
Does Hawaii require a tax preparer license?
No. Hawaii does not require non-credentialed paid tax preparers to pass a state exam or complete state-mandated continuing education. However, two registrations are required before serving any Hawaii client: a federal PTIN (mandated by HRS 231-15.4) and a Hawaii Verified Practitioner ID (VPID), obtained at no cost via Form PPS-12 with approximately 7 business days to process. Preparers earning any income from Hawaii clients must also hold a GET license (Form BB-1, $20 one-time) before taking their first dollar.
What is the Hawaii General Excise Tax for tax preparation services?
Tax preparation is a professional service subject to Hawaii's General Excise Tax at the 4% retail rate plus a 0.5% county surcharge in all four counties, for a combined effective rate of 4.5%. The standard pass-on rate to clients is 4.712%. GET is not a sales tax; it is a tax on the privilege of doing business in Hawaii, owed by the preparer on every dollar of gross preparation fees regardless of profitability. Register via Form BB-1 ($20 one-time) before earning your first Hawaii dollar. File periodic returns on Form G-45 and an annual reconciliation on Form G-49 by April 20.
Does Hawaii conform to the OBBBA tip and overtime exemptions?
No. Hawaii does NOT conform to the One Big Beautiful Bill Act (OBBBA, signed July 4, 2025). Hawaii uses static IRC conformity dated January 1, 2025, which predates OBBBA enactment. The federal tip income deduction (up to $25,000), the overtime pay deduction (up to $12,500 single / $25,000 joint), and the QBI/Section 199A deduction do not apply on Hawaii state returns. All tip income and overtime pay remain fully taxable at ordinary Hawaii rates. Every OBBBA-impacted client will have a federal/state difference on the Hawaii return.
What is the Hawaii income tax rate for 2025?
Hawaii has 12 income tax brackets for TY2025, more than any other U.S. state. Rates range from 1.4% on the first $9,600 of taxable income (single filer) up to 11% on amounts over $325,000 (single filer). The TY2025 standard deduction is $4,400 for single filers and $8,800 for joint filers. For TY2026 (returns filed in 2027), the standard deduction nearly doubles to $8,000 single and $16,000 joint under Act 46, SLH 2024 (the Green Affordability Plan II).
Is military retirement income taxable in Hawaii?
No. Hawaii fully exempts military retired pay from state income tax under HRS 235-7(a)(3). The exemption covers all military retirement pay from any branch, disability retirement pay, Survivor Benefit Plan (SBP) annuities, and Reserve Component SBP annuities. Social Security benefits are also fully exempt with no income threshold. TSP distributions, however, are taxable in Hawaii at ordinary income rates. CSRS and FERS federal civil service pensions are also exempt; TSP is not.
For 2025 returns, verify how this state responds to the One Big Beautiful Bill Act provisions before filing. The state OBBBA conformity practitioner guide covers the conformity analysis workflow for tip and overtime income add-backs, bonus depreciation decoupling, and QBI adjustments in major nonconforming states.