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Hawaii Estate Tax

Exemption, rates and planning for Hawaii.

Hawaii has its own estate tax with an exemption of about $5.49M and a top rate of 20% — well below the $15M federal exemption, so more estates are affected.

How Hawaii estate tax works

Only the value of a taxable estate above the $5.49M exemption is taxed, at rates topping out around 20%. The unlimited marital deduction and charitable gifts reduce the taxable estate. Estimate your Hawaii and federal tax together in the estate tax calculator.

Planning around it

Because the Hawaii exemption is far below the federal level, even middle-class estates with a home and retirement savings can be exposed. Lifetime gifting (see the gift tax calculator) and the step-up in basis (the step-up calculator) are common tools. Confirm current figures with Hawaii, as exemptions are indexed.

This is educational only and not tax or legal advice. Consult an estate attorney for Hawaii.