The 2025 picture for Hawaii residents
In 2025, Hawaii residents paid federal ordinary income tax at brackets topping out at 37%, plus Hawaii state tax up to 11%, plus Medicare (1.45% + 0.9% additional above $200k single MAGI), plus a federal supplemental-withholding layer on RSU-style income.
2025 federal capital gains brackets
In $2025, federal long-term capital gains rates were 0% up to approximately $48,350, 15% up to approximately $533,400, and 20% above. The 3.8% NIIT added for MAGI above $200,000 single, producing a 23.8% top federal rate on long-term equity sales.
Hawaii treatment in 2025
Hawaii offered preferential treatment for long-term capital gains in 2025. The specific exclusion percentage depended on the state's statute; confirm the 2025 version before applying.
Frequently asked
- What supplemental-wage withholding rate applied to RSU income in Hawaii in 2025?
- The federal supplemental-wage withholding rate was 22% on the first $1,000,000 of supplemental wages per calendar year, rising to 37% above that. Hawaii state withholding ran up to 11% at the top bracket.
- Did Hawaii recognize federal QSBS exclusion in 2025?
- Hawaii's conformity status varies year by year and by type of taxpayer. As of 2025, most states other than California, New Jersey, Pennsylvania, and Mississippi either conformed fully or partially to Section 1202. Check the 2025 filing instructions for the specific language.
- What was the top federal ordinary bracket in 2025, and how did it apply to Hawaii residents?
- The 37% federal ordinary bracket started around $626,350 of taxable income for single filers in 2025. Hawaii stacked 11% on top of that for high earners, producing a combined top marginal rate of approximately 48.0%.