Capital Gains Tax for Hawaii (2026)
Hawaii (HI) Key Facts
State Capital Gains Rate
11%
Taxed As
Ordinary income
Federal Rate Applies
Yes (0%, 15%, or 20%)
Long Term vs Short Term
Both taxed at state level
How This Calculator Works in Hawaii
This calculator estimates your combined federal and Hawaii capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
Hawaii Overview
Hawaii taxes capital gains at up to 11% as ordinary income and also imposes a 7.25% capital gains tax on real property sales. Federal capital gains taxes also apply, with long-term rates of 0%, 15%, or 20% depending on income. The combined state and federal burden should be considered when planning asset sales or investment strategies.
How Hawaii Compares
Hawaii's capital gains rate of 11% compares to California at 13.3% and Alaska at 0%. State capital gains taxes significantly impact net investment returns.
| State | Top Rate | Notes |
|---|---|---|
| California | 13.3% | California has a capital gains rate of 13.3%. |
| Alaska | 0% | Alaska has a capital gains rate of 0%. |
Hawaii's capital gains rate of 11% compares to a national average of approximately 5.04%. This is above the national average.
Tips for Hawaii Residents
- 1Hawaii taxes capital gains at up to 11% as ordinary income and also imposes a 7.25% capital gains tax on real property sales.
- 2Federal long-term gains (held 1+ year) are taxed at 0%, 15%, or 20%. Hawaii's state tax applies on top of the federal rate.
- 3Hold investments over one year to qualify for lower federal long-term rates rather than ordinary income rates.
- 4Tax-loss harvesting—selling losing investments to offset gains—reduces both federal and Hawaii state capital gains tax.
- 5Consider the combined federal + state rate when planning large asset sales. The total can exceed 34.8% for high earners.