The 2026 picture for Hawaii residents
In 2026, 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.
2026 AMT exemption
The 2026 federal AMT exemption was $88,100 for single filers. The exemption phased out at 25 cents per dollar of AMTI above $626,350, fully eliminating the exemption for higher earners. That is why ISO exercises in Hawaii during 2026 produced AMT bills that surprised people running first-order mental math.
Hawaii layer in 2026
Hawaii did not impose a separate state AMT in 2026, so federal AMT was the only layer. State ordinary tax still applied to any disqualifying disposition income recognized in the same year.
Frequently asked
- What supplemental-wage withholding rate applied to RSU income in Hawaii in 2026?
- 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 2026?
- Hawaii's conformity status varies year by year and by type of taxpayer. As of 2026, most states other than California, New Jersey, Pennsylvania, and Mississippi either conformed fully or partially to Section 1202. Check the 2026 filing instructions for the specific language.
- What was the top federal ordinary bracket in 2026, and how did it apply to Hawaii residents?
- The 37% federal ordinary bracket started around $626,350 of taxable income for single filers in 2026. Hawaii stacked 11% on top of that for high earners, producing a combined top marginal rate of approximately 48.0%.