Hawaii Payroll Compliance
Every rate, wage base, and threshold Hawaii employers need for 2026 — sourced from DOTAX and DLIR — including a $2.00 minimum wage jump and the employer-provided disability insurance model that works nothing like its mainland cousins.
Minimum Wage & Hours
Hawaii’s minimum wage jumped to $16.00/hour on January 1, 2026 — a full $2.00 increase from $14.00, the largest single-year jump of any state covered in this guide. Hawaii permits a limited tip credit for tipped staff.
| Item | 2026 Value | Notes |
|---|---|---|
| Statewide minimum wage | $16.00/hr | Up $2.00 from $14.00 in 2025 |
| Tipped credit | Limited | Tips may count toward minimum wage up to a statutory cap |
| Overtime rule | 40 hrs/week | Federal FLSA; no separate state daily overtime rule |
| Local wage ordinances | None | No Hawaii county sets its own minimum wage |
State Income Tax Withholding
Hawaii runs 12 tax brackets — more than any other state — from 1.4% to 11.0%. Act 46 is progressively widening those brackets through 2031, gradually lowering the effective rate at every income level even though the marginal rates themselves stay the same.
| Item | 2026 Value | Notes |
|---|---|---|
| Bracket range | 1.4% – 11.0% | 12 brackets — the most of any US state |
| Required certificate | Form HW-4 | Hawaii-specific; determines withholding level and allowances |
| Multi-year bracket widening | Act 46, through 2031 | Brackets widen annually, lowering effective tax at each income level over time |
| Local income tax | None | No Hawaii county imposes one; all four counties follow the state rate only |
Temporary Disability Insurance (TDI)
Hawaii is one of only five states requiring disability coverage (with California, New Jersey, New York, and Rhode Island) — but its funding model is unique. Rather than a payroll-tax rate, the employer must carry an approved TDI plan and may deduct only a small, capped amount from the employee.
| Item | 2026 Value | Notes |
|---|---|---|
| Coverage requirement | Employer-provided plan | Via an approved private insurer or the state plan, under HRS §392 |
| Employee contribution cap | 0.5% of wages, max $7.50/week | Employer covers the remainder of the premium |
| Eligibility threshold | 14 weeks + $400 earnings | Employment duration and earnings test to qualify |
| Governing statute | HRS §392 | Hawaii Temporary Disability Insurance Law |
Unemployment Insurance (SUI)
Hawaii’s SUI is fully employer-paid, with the wage base rising to $64,500 for 2026 — among the highest in the country, reflecting Hawaii’s high average wages.
| Item | 2026 Value | Notes |
|---|---|---|
| SUI taxable wage base | $64,500 | Up from $62,000 in 2025 |
| Funding | Fully employer-paid | Never appears as a deduction on the employee's paystub |
| New employer rate | Set annually | Standard starting rate until claims history is established |
| Administering agency | DLIR | Dept. of Labor and Industrial Relations |
Official Hawaii .gov Resources
Verify every figure and register for accounts at the source. Hawaii employers coordinate across DOTAX and DLIR for a single payroll run.