Hawaii variant. This is a Hawaii-specific version of the Stock Sale Capital Gains Tax Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Stock Sale Capital Gains Tax Estimator.
Most states tax capital gains as ordinary income. In Hawaii, that means a top rate of 11% on gains.
Capital gains tax in Hawaii
Federally, long-term gains are taxed at 0%, 15%, or 20% depending on income, plus a possible 3.8% net investment income tax. Hawaii then taxes the same gains as ordinary income at up to 11%.
Short-term gains (assets held under a year) are taxed as ordinary income at both levels - usually the most expensive outcome.
About taxes and housing in Hawaii
Hawaii has one of the most graduated income tax structures in the country, with many brackets and a top rate of 11%.
Hawaii has the lowest effective property tax rate in the nation, though sky-high home prices keep total housing costs among the highest.
Hawaii's economy depends heavily on tourism and the military, and its island geography drives one of the highest costs of living in the U.S.
Worked example: $50,000 long-term gain
A $50,000 long-term gain: federal 15% = $7,500, plus Hawaii state tax up to 11% = $5,500, for a combined bill near $13,000.
Quick reference
- State income tax: 1.4-11% across 12 brackets (most in US)
- State sales tax: 4% (plus 0.50% avg local)
- Median home value: $855,000
- Median household income: $94,814
- Effective property tax rate: 0.27%
- Avg auto insurance: $1,351/yr
Frequently Asked Questions
Does Hawaii tax capital gains?
Yes - Hawaii taxes capital gains as ordinary income at up to 11%.
What's the difference between short and long-term gains?
Assets held over a year get preferential long-term federal rates (0/15/20%); shorter holds are taxed as ordinary income.