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Hawaii Estate Tax

Hawaii levies its own estate tax with an exemption of about $5.49M and a top rate of 20%, one of the highest estate tax rates in the country.

By Priya Raman, Contributing Writer, Policy & Regulation
Updated 2026-07-08

What this actually means for a Hawaii estate

Only the value above $5.49 million is taxed, after the unlimited marital deduction and charitable bequests reduce the taxable estate. Lifetime gifting (the gift tax calculator) and the step-up in basis (the step-up calculator) are the standard tools for estates approaching the exemption.

Why does Hawaii tax estates at one of the highest rates in the country?

Hawaii's legislature set its top estate tax rate at 20%, tying Washington State for the highest of any state on this site, and it applies once a taxable estate clears the $5.49 million exemption.

The rate only touches the amount above the exemption, not the whole estate, but Hawaii's cost of living raises the stakes: a single home can represent a large share of the exemption on its own, so an estate that would look ordinary elsewhere can face a real Hawaii bill. Compare Hawaii and federal figures side by side in the calculator.

Hawaii estate tax, 2026 (verified July 2026)
Figure	Amount
Exemption	~$5,490,000
Top rate	20%
Source	Hawaii Department of Taxation (confirm current figure before relying on it)

Confirm current figures with Hawaii's Department of Taxation before relying on them.

Good to know

Frequently asked: Hawaii estate tax

Why is Hawaii's estate tax rate so high?

Hawaii's legislature set its top rate at 20%, tying Washington for the highest in the country. It applies only to the amount above the $5.49 million exemption, not the whole estate.

Does Hawaii's high cost of living affect who owes this tax?

Yes. Hawaii real estate values mean a single home can represent a large share of the $5.49 million exemption, so estates that would look modest elsewhere can face a real Hawaii bill.

How does Hawaii's exemption compare with the federal one?

At about $5.49 million, it is roughly a third of the $15 million federal exemption, so many estates that owe nothing to the IRS still owe Hawaii tax.

Is this tax advice?

No, it is an educational reference. Confirm current figures with Hawaii's Department of Taxation or an estate attorney.