Hawaii 1099 taxes: a 2026 guide for the self-employed
Keeper StaffKeeper is a delightfully smart tax filing software that's especially useful for people with 1099 contracting and freelance income. Our blog breaks down IRS guidance with real-world examples and analysis by tax professionals — empowering taxpayers to save money and take control of their finances.
Krislyn ChanKrislyn is Chief Growth Officer at Keeper. At Keeper, she strives to make expert-level tax strategies that used to require a traditional CPA accessible to all. Prior to Keeper, she was at Curology, where she helped bring custom, prescription-grade skincare out of the dermatologist's office to millions of faces.
Key takeaways
- 1099 income in Hawaii is subject to three taxes: 15.3% federal self-employment tax, 10% to 37% federal income tax, and 1.4% to 11% Hawaii income tax.
- Set aside 25–30% of your profit in a high-yield savings account, so the money earns interest until your tax payments are due. For a single filer with no other income, total tax runs from 21.4% of profit at $40,000 to 33.0% at $200,000.
- Hawaii also taxes what you bill. The 4.5% general excise tax (GET) applies to your gross receipts, before expenses, on every island. You need a GET license before you start working.
- Hawaii estimated payments start at $500. If you expect to owe $500 or more in Hawaii income tax, make quarterly estimated tax payments, due April 20, June 22, and September 21, 2026, and January 20, 2027.
- Hawaii’s income tax rate climbs fast. A single filer reaches the 7.6% income tax rate at $48,000 of taxable income, so at $80,000 of profit you pay more Hawaii income tax than you would in California.
How much tax do 1099 workers pay in Hawaii?
These tables show estimated 2026 tax on self-employment profit, the amount left after business expenses. They assume this is your only income, you take the standard deduction, and you have no kids or tax credits.
Single filer, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | Hawaii income tax |
|---|---|---|---|---|---|
| $40,000 | $8,560 | 21.4% | $5,652 | $1,775 | $1,133 |
| $60,000 | $14,477 | 24.1% | $8,478 | $3,559 | $2,440 |
| $80,000 | $20,494 | 25.6% | $11,304 | $5,344 | $3,847 |
| $100,000 | $27,624 | 27.6% | $14,130 | $8,235 | $5,259 |
| $150,000 | $46,414 | 30.9% | $21,194 | $16,413 | $8,807 |
| $200,000 | $65,915 | 33.0% | $28,234 | $25,196 | $12,485 |
Married filing jointly, one self-employed spouse, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | Hawaii income tax |
|---|---|---|---|---|---|
| $40,000 | $6,314 | 15.8% | $5,652 | $398 | $264 |
| $60,000 | $11,416 | 19.0% | $8,478 | $1,885 | $1,053 |
| $80,000 | $17,120 | 21.4% | $11,304 | $3,550 | $2,266 |
| $100,000 | $23,005 | 23.0% | $14,130 | $5,335 | $3,541 |
| $150,000 | $37,977 | 25.3% | $21,194 | $9,795 | $6,987 |
| $200,000 | $55,226 | 27.6% | $28,234 | $16,472 | $10,520 |
How Hawaii taxes 1099 income
If you’re a freelancer, independent contractor, gig worker, or solo business owner in Hawaii, your net profit (1099 income minus business expenses) is taxed three ways:
- Federal self-employment tax: 15.3% on most of your profit (92.35% of it). That’s 12.4% for Social Security, on earnings up to $184,500 in 2026, plus 2.9% for Medicare with no cap. It replaces the payroll taxes an employer would split with you. Estimate it with the self-employment tax calculator.
- Federal income tax: 10% to 37% on what’s left after three deductions: the $16,100 standard deduction ($32,200 married filing jointly), half of your self-employment tax, and the 20% QBI deduction.
- Hawaii income tax: 1.4% to 11% on your profit minus half of your self-employment tax, the $8,000 standard deduction ($16,000 married filing jointly), and a $1,144 exemption for each person on your return. You report it on Form N-11.
On top of those, Hawaii charges a 4.5% general excise tax on your gross receipts. It’s covered below, and it isn’t in the totals on this page.
What’s different about Hawaii
- Twelve income tax brackets. Hawaii’s rates run from 1.4% to 11%, and they rise quickly: a single filer pays 7.6% on taxable income from $48,000 to $125,000.
- A smaller standard deduction. Hawaii’s is $8,000 for single filers in 2026, about half the federal $16,100. It rises to $9,000 in 2028 and $10,000 in 2030.
- No QBI deduction. The IRS lets you deduct up to 20% of your business profit. Hawaii doesn’t. At $80,000 of profit, that’s $11,650 you deduct on your federal return but still pay Hawaii tax on.
- Some federal deductions carry over. Because Hawaii starts with the same adjusted gross income as your federal return, three deductions you take there also lower your Hawaii tax: half of your self-employment tax, self-employed health insurance premiums, and self-employed 401(k) contributions.
A self-employed person in Hawaii at $80,000 pays $20,494: about $1,234 more than in California and $3,847 more than in Texas, which has no income tax.
Hawaii income tax rates for 2026
Married couples filing jointly use income ranges twice as wide as single filers. The rates stay the same until Hawaii widens the brackets again in 2027.
| Rate | Single or married filing separately | Married filing jointly |
|---|---|---|
| 1.4% | $0 – $9,600 | $0 – $19,200 |
| 3.2% | $9,600 – $14,400 | $19,200 – $28,800 |
| 5.5% | $14,400 – $19,200 | $28,800 – $38,400 |
| 6.4% | $19,200 – $24,000 | $38,400 – $48,000 |
| 6.8% | $24,000 – $36,000 | $48,000 – $72,000 |
| 7.2% | $36,000 – $48,000 | $72,000 – $96,000 |
| 7.6% | $48,000 – $125,000 | $96,000 – $250,000 |
| 7.9% | $125,000 – $175,000 | $250,000 – $350,000 |
| 8.25% | $175,000 – $225,000 | $350,000 – $450,000 |
| 9% | $225,000 – $275,000 | $450,000 – $550,000 |
| 10% | $275,000 – $325,000 | $550,000 – $650,000 |
| 11% | Over $325,000 | Over $650,000 |
Hawaii general excise tax (GET)
Hawaii doesn’t have a sales tax. Instead, it charges a general excise tax on the gross receipts of almost every business, including services. If you’re self-employed in Hawaii, you almost certainly owe it.
- The rate is 4.5% on every island: the 4% state rate plus a 0.5% county surcharge in Honolulu, Maui, Kauai, and Hawaii counties. If you bill $100,000, you owe $4,500 in GET.
- You need a GET license before you start working. It’s a one-time $20 fee through Hawaii Tax Online.
- You can add it to your invoices, up to 4.712%. The rate is higher than 4.5% because GET is also due on the tax you collect.
- Work for clients outside Hawaii may be exempt. Services you perform in Hawaii that your client uses outside the state can qualify, if the client gives you a signed Form G-61.
- GET is a business expense. The GET you pay lowers your profit, and with it your self-employment and income taxes.
You file GET returns (Form G-45) monthly, quarterly, or twice a year, depending on how much you owe, plus an annual return (Form G-49).
Example: Hawaii tax on $80,000 of 1099 income
Here’s the math for a single self-employed person in Hawaii with $80,000 of profit and no other income, before GET.
| Step | Amount |
|---|---|
| Self-employment tax: $80,000 × 92.35% × 15.3% | $11,304 |
| $80,000 minus half of self-employment tax | $74,348 |
| Income the IRS taxes: $74,348 minus the $16,100 standard deduction and $11,650 QBI deduction | $46,599 |
| Federal income tax | $5,344 |
| Income Hawaii taxes: $74,348 minus the $8,000 standard deduction and $1,144 exemption | $65,204 |
| Hawaii income tax | $3,847 |
| Total 2026 tax | $20,494 (25.6%) |
Self-employment tax is the biggest piece. Every dollar you write off as a business expense lowers all three taxes, since your self-employment tax, federal income tax, and Hawaii income tax are all based on your profit after expenses.
What tax write-offs can I claim?
How to lower your Hawaii 1099 tax bill
At $80,000 of profit, every $1,000 of business expenses you deduct cuts about $301 from your total tax. Common write-offs for self-employed people in Hawaii include:
- Your phone and internet, for the share you use for work
- Car expenses, using a set rate per mile or your actual costs (compare the two)
- A home office, if you use part of your home regularly and only for work (estimate yours)
- Software, equipment, and supplies you buy for your business
- Health insurance premiums you pay as a self-employed person
- Retirement contributions to a SEP-IRA or Solo 401(k)
Most of these are small purchases spread across a year of bank and card statements, which is where they get missed. See the full list of tax write-offs for self-employed people.
Track and claim every eligible deduction with Keeper
Keeper scans your accounts for write-offs and files your return — with tax pros reviewing every one.
Try it freeHawaii estimated tax payments
If you expect to owe $500 or more in Hawaii income tax for 2026, make estimated payments to the Hawaii Department of Taxation online through Hawaii Tax Online or with Form N-200V. Hawaii’s due dates fall five days or more after the federal ones, and each payment is a quarter of your Hawaii tax:
| Payment | Share of your Hawaii tax | Due date |
|---|---|---|
| 1st | 25% | April 20, 2026 |
| 2nd | 25% | June 22, 2026 |
| 3rd | 25% | September 21, 2026 |
| 4th | 25% | January 20, 2027 |
- Federal payments are separate: you pay the IRS with Form 1040-ES by April 15, June 15, and September 15, 2026, and January 15, 2027.
- To avoid a penalty for paying too little, pay at least 60% of this year’s Hawaii tax or 100% of last year’s in on-time payments. Hawaii has no higher bar for high earners. The penalty is 2/3 of 1% a month on the amount you’re short.
Get your payment amounts with the Hawaii quarterly tax calculator.
Should you form an LLC or S corp in Hawaii?
You don’t need one to work as an independent contractor. If you work for yourself without forming a business, you report 1099 income on Schedule C, part of your regular tax return, and pay the taxes above. Either way, you need a GET license.
- LLCs cost $51 to form ($50 plus a $1 state archives fee) and $15 a year for the annual report.
- S corps can make sense once your profit is around $80,000, when the self-employment tax savings get significant. You pay yourself a reasonable salary and take the rest as profit payouts (distributions) that aren’t subject to self-employment tax.
Run the numbers for your income to see what you’d save.
8 sources
- HRS 235-51: income tax rates · capitol.hawaii.gov
- HRS 235-2.4: standard deduction · capitol.hawaii.gov
- HRS 235-97: estimated tax payments · capitol.hawaii.gov
- Tax Facts 37-1: general excise tax (Hawaii Department of Taxation) · files.hawaii.gov
- County surcharge on general excise and use tax · tax.hawaii.gov
- Domestic LLC fees (Hawaii Business Registration Division) · cca.hawaii.gov
- IRS releases tax inflation adjustments for tax year 2026 · irs.gov
- Contribution and benefit base · ssa.gov
This article is for informational purposes only and isn’t tax, legal, or financial advice. Tax rules change and depend on your situation, so talk to a tax professional about yours.
