State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families. Go to the Kiplinger Tax Map Hawaii Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Tax-Friendly The Aloha State does things differently than the mainland, taxes included. Let's start with Hawaii's sales tax. Since it's due on virtually all transactions, the pocketbook effect is far more severe than the rate would suggest. Income taxes are relatively high, too with a whopping 11% top rate. A ray of sunshine: Property taxes as a percentage of home value are the lowest in the U.S. Income Tax Range Low: 1.4% (on taxable income up to $4,800 for married couples filing jointly; on up to $2,400 for married couples filing separately and individual filers)High: 11% (on taxable income over $400,000 for married couples filing jointly and surviving spouses; on over $200,000 for married couples filing separately and individual filers) Sales Tax 4% state levy. Localities can add as much as 0.5%, but the average combined rate is only 4.44%, according to the Tax Foundation.Groceries: TaxableClothing: TaxableMotor Vehicles: TaxablePrescription Drugs: Exempt Real Property Taxes In Hawaii, the median property tax rate is $280 per $100,000 of assessed home value. That's the lowest statewide rate in the nation. Motor Fuel Taxes Gasoline: 46.28¢ per gallon (varies by county). Diesel: 49.25¢ per gallon (varies by county). Sin Taxes Cigarettes and little cigars: $3.20 per packLarge cigars: 50% of the wholesale priceOther tobacco products: 70% of the wholesale priceBeer: $0.93 per gallonWine: $1.38 per gallon ($2.12 if sparkling)Liquor: $5.98 per gallon Annual Car Taxes and Fees An annual vehicle registration fee based on the car's weight and usage is imposed. Estate and Inheritance Taxes Hawaii imposes an estate tax on estates worth $5.49 million or more. Tax rates range from 10% to 20%.