Property Management Income Taxes In Hawaii

Updated August 7, 2026

11 min read

This guide covers how rental and management income is taxed in Hawaii: what the state takes, what the IRS takes, who has to withhold on an out-of-state owner, and when each return is due. Every figure is tied to the statute, agency rule, or published guidance that sets it, so you can confirm a rate before acting on it.

State Income Tax On Rental And Management Income

Hawaii taxes individual income at graduated rates from 1.4% to 11%, one of the highest top rates in the country. Act 46, Session Laws of Hawaii 2024 widened the brackets starting in tax year 2025 and raises the standard deduction in steps through 2031. Rental income is reported on the individual return whether the owner is a resident or a nonresident, and a Hawaii return is required even if the rental operates at a loss.

For taxable years beginning after December 31, 2017, Hawaii individual income tax rates range from 1.4% to 11% of taxable income. Estates and trusts range from 1.4% to 8.25%. (Outline of the Hawaii Tax System as of July 1, 2025, item (1) Net Income)
For tax year 2025 the top 11% bracket begins at taxable income over $650,000 for joint filers and surviving spouses, over $487,500 for head of household, and over $325,000 for single or married filing separate. Standard deductions for 2025 remain at 2024 levels: $8,800 joint or surviving spouse, $6,424 head of household, and $4,400 single or married filing separate. (Department of Taxation Announcement No. 2024-03, Act 46, Session Laws of Hawaii 2024, Tax Year 2025 schedules)
Hawaii corporate income tax rates are 4.4% on the first $25,000 of taxable income, 5.4% over $25,000 but not over $100,000, and 6.4% over $100,000. (Outline of the Hawaii Tax System as of July 1, 2025, item (1) Net Income)
Partnerships and S corporations may elect pass-through entity taxation and pay Hawaii income tax at the entity level. The PTE elective rate for taxable years beginning after December 31, 2023 is 9%, with no separate rate for capital gains. (Outline of the Hawaii Tax System as of July 1, 2025, item (1) Net Income, pass-through entity taxation)
A resident individual reports net rental income or loss on Form N-11. A nonresident or part-year resident individual uses Form N-15 and may use federal Schedule E as a worksheet. A Hawaii income tax return must be filed whether the rental produces a profit or a loss. (An Introduction to Renting Residential Real Property, questions 42 and 43)
General excise tax and transient accommodations tax paid may not be taken as a credit against Hawaii income tax liability, but may be taken as business expense deductions. (An Introduction to Renting Residential Real Property, question 44)
When a nonresident sells Hawaii rental property, the buyer is required to withhold 7.25% of the total sales price from the amount due to the seller at the time of sale, credited to the seller's income tax account as an estimated tax payment. (An Introduction to Renting Residential Real Property, question 46, HARPTA)

Withholding And Employer Taxes

Hawaii employers withhold state income tax and file quarterly, with an annual transmittal due at the end of January. Unemployment insurance is administered under HRS chapter 383 on a multi-schedule rate system with a wage base that tracks 100% of the state average annual wage, making it one of the highest wage bases in the country. The only owner-side withholding a manager encounters is HARPTA on the sale of property by a nonresident.

Hawaii withholding returns on Form HW-14 are due quarterly on or before the 15th day of the following calendar month. The annual employer's transmittal, Form HW-30, must be filed together with a hard copy of each employee's Form HW-2 or Form W-2 on or before the last day of January following the close of the calendar year. (Outline of the Hawaii Tax System as of July 1, 2025, item (1) Net Income, tax reporting due dates)
Hawaii unemployment insurance uses a multi-schedule contribution rate system with eight schedules, A through H. An employer's rate can range from 0.00% to 6.60%. For 2025, schedule C was in effect, under which employer contribution rates are not less than 0.00% or greater than 5.60%. (Outline of the Hawaii Tax System as of July 1, 2025, item (13) Unemployment Insurance, HRS chapter 383)
The Hawaii unemployment insurance taxable wage base represents 100% of the state's average annual wages reported by employers contributing to the trust fund. For 2025 the wage base was set at $61,958.00. An additional Employment and Training fund assessment applies at 0.01% for 2025. (Outline of the Hawaii Tax System as of July 1, 2025, item (13) Unemployment Insurance)
Hawaii employers submit Form UC-B6, Quarterly Wage, Contribution and Employment and Training Assessment Report, online each quarter. The report must be filed on or before the last day of the month following the report quarter. (Outline of the Hawaii Tax System as of July 1, 2025, item (13) Unemployment Insurance, reporting of taxes)
Rental owners may be required to pay estimated income tax. Individuals use Form N-200V and corporations, estates and trusts use Form N-201V. Estimated tax installments for individuals are due April 20th, June 20th, September 20th and January 20th. (An Introduction to Renting Residential Real Property, question 44, and Outline of the Hawaii Tax System as of July 1, 2025, item (1))

Federal Obligations

Federal reporting layers on top of Hawaii's GET and TAT. Hawaii explicitly warns that the Rents figure on a Form 1099-MISC issued by a property manager will not match the gross rental proceeds reported for GET and TAT, because the two measures are defined differently.

Individuals report rental real estate income and expenses on Schedule E (Form 1040), Supplemental Income and Loss. (About Schedule E (Form 1040), Supplemental Income and Loss)
Residential rental property placed in service after 1986 is depreciated under MACRS using the straight line method over a 27.5 year recovery period, and land is never depreciable. (IRS Publication 527, Residential Rental Property)
For payments made during 2025 the Form 1099-NEC and Form 1099-MISC reporting threshold is $600. The One, Big Beautiful Bill Act raised the statutory threshold under section 6041(a) to a base amount of $2,000 for payments made after December 31, 2025, indexed for inflation for calendar years after 2026. (Internal Revenue Bulletin 2026-19, information reporting threshold change)
Hawaii warns that the Rents figure shown on a Form 1099-MISC from a property manager differs from the gross rental proceeds reported for TAT and GET, because Rents for income tax purposes includes everything the tenant is charged and must pay, including TAT and GET visibly passed on. (Tax Facts 96-2, Transient Accommodations Tax, question 19, Revised May 2025)
A Hawaii managing agent that files federal Form 1099-MISC instead of the first page of the rental collection agreement must file that Form 1099-MISC with the Department of Taxation by February 28, when all 1099s are due. (An Introduction to Renting Residential Real Property, question 26)

Filing Deadlines

Hawaii uses the 20th of the month rather than the 15th, and its annual returns are due the 20th day of the fourth month after year end, which is April 20 for calendar-year filers. GET and TAT each have a periodic return and a separate annual reconciliation, and filing frequency is driven by annual liability thresholds.

GET is reported on Form G-45, the periodic return, and Form G-49, the annual return. TAT is reported on Form TA-1, the periodic return, and Form TA-2, the annual return. Schedule GE is attached to Forms G-45 and G-49 to claim exemptions, and Form G-75 is attached when rental property is on more than one island. (An Introduction to Renting Residential Real Property, questions 38 and 39)
Periodic returns, Forms G-45 and TA-1, are due on the 20th day of the calendar month following the close of the filing period. Annual returns, Forms G-49 and TA-2, are due on the 20th day of the fourth month following the close of the taxable year, which is April 20 for a calendar year taxpayer. (An Introduction to Renting Residential Real Property, question 40)
GET filing frequency is set by annual liability: monthly returns are required when total tax liability exceeds $4,000 for the calendar or fiscal year, quarterly is allowed when liability does not exceed $4,000, semiannual when it does not exceed $2,000, and no periodic return is required when total liability for the year does not exceed $100 for years beginning after December 31, 2022. (Outline of the Hawaii Tax System as of July 1, 2025, item (3) General Excise (Gross Income), reporting of taxes)
Taxpayers whose GET or TAT liability exceeds $4,000 must file periodic returns monthly and, for taxable years beginning on or after January 1, 2020, must file Forms G-49 and TA-2 electronically if annual liability exceeds $4,000. A penalty of 2% of the tax due is assessed for failing to file electronically when required. (An Introduction to Renting Residential Real Property, question 41, and Act 66, Session Laws of Hawaii 2018)
Hawaii income tax returns are due on the 20th day of the fourth month following the close of the taxable year. (Outline of the Hawaii Tax System as of July 1, 2025, item (1) Net Income, tax reporting due dates)
A managing agent must file the first page of the owner's rental collection agreement with the Department within 30 days after entering into the agreement, notify the owner that the information was furnished, and give the owner a copy of that notice. (An Introduction to Renting Residential Real Property, questions 25 and 26)

Recent Changes Worth Tracking

Effective January 1, 2026: Act 96, Session Laws of Hawaii 2025 increased the state transient accommodations tax by 0.75%, from 10.25% to 11.00%, and extended the TAT to cruise ship operators' gross rental proceeds from cruise fares, prorated by the ratio of days docked in State ports to the duration of the voyage. (Department of Taxation Announcement No. 2025-03, June 9, 2025)
Effective January 1, 2026: Under Act 96, whether the 10.25% or 11.00% TAT rate applies turns on the taxpayer's accounting method. Cash basis taxpayers apply 11.00% to proceeds actually or constructively received on or after January 1, 2026. Accrual basis taxpayers apply 11.00% where the right to receive income is fixed under the all events test on or after that date. All taxpayers are presumed cash basis under HRS section 237D-1 unless they prove otherwise. (Department of Taxation Announcement No. 2025-03, June 9, 2025)
Effective Bracket changes effective tax year 2025; standard deduction increase effective tax year 2026: Act 46, Session Laws of Hawaii 2024 widened the individual income tax brackets beginning in tax year 2025, with further bracket changes in 2027 and 2029, and raises the standard deduction in steps in 2024, 2026, 2028, 2030 and 2031. For tax year 2026 the standard deduction rises to $16,000 joint or surviving spouse, $12,000 head of household, and $8,000 single or married filing separate. (Department of Taxation Announcement No. 2024-03, June 3, 2024)
Effective January 1, 2024: Maui County's 0.5% general excise tax county surcharge took effect, bringing all four Hawaii counties to a 0.5% surcharge and a 4.5% combined GET rate on rental income, with a maximum visible pass-on rate of 4.7120%. The Maui surcharge runs through December 31, 2030. (County Surcharge and Maximum General Excise (GE) Tax Pass-On Rates table)

Tax is one half of Hawaii compliance. See our guide to Hawaii property management laws and regulations for licensing, trust account, and disclosure rules.

This page is one half of the picture. See our guide to the Hawaii taxes a management company pays directly for the rest.

Keeping This Straight

Tax rates and thresholds move more often than most operators expect, and the figures circulating in older articles go stale quickly. Check any rate against its citation before you quote it to an owner, and re-check them at the start of each tax year.

This guide is a starting point for professional managers, not tax or legal advice. For a specific filing, work with a CPA familiar with Hawaii rental property, and confirm current figures with the Hawaii Department of Taxation or the IRS.