Title 14, Taxation

§235-25 Rents; royalties. (a) Net rents and royalties from real property located in this State are allocable to this State. (b) Net rents and royalties from tangible personal property are allocable to this State: (c) The extent of utilization of tangible personal property in a st…

§235-26 Allocation of capital gains and losses. (a) Capital gains and losses from sales of real property located in this State are allocable to this State. (b) Capital gains and losses from sales of tangible personal property are allocable to this State if: (c) Except in the case…

§235-27 Allocation of interest and dividends. Interest and dividends are allocable to this State if the taxpayer's commercial domicile is in this State. [L 1967, c 33, pt of §1; HRS §235-27]

§235-28 Allocation of patent and copyright royalties. (a) Patent and copyright royalties are allocable to this State: (b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent…

§235-29 Apportionment of business income; percentage. All business income shall be apportioned to this State by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three…

§235-3 Legislative intent, how Internal Revenue Code shall apply, in general. (a) It is the intent of this chapter, in addition to the essential purpose of raising revenue, to conform the income tax law of the State as closely as may be with the Internal Revenue Code in order to …

§235-30 Apportionment; property factor. The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this State during the tax period and the denominator of which is the average va…

§235-31 Apportionment; property factor; owned and used property. Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpay…

§235-32 Apportionment; property factor; average value. The average value of property shall be determined by averaging the values at the beginning and ending of the tax period but the director of taxation may require the averaging of monthly values during the tax period if reasona…

§235-33 Apportionment; payroll factor. The payroll factor is a fraction, the numerator of which is the total amount paid in this State during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the tax per…

§235-34 Compensation; where paid. Compensation is paid in this State if:

§235-35 Apportionment; sales factor. The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this State during the tax period, and the denominator of which is the total sales of the taxpayer everywhere during the tax period. [L 1967, c 33, pt …

§235-36 Apportionment; sales factor; tangible personalty. Sales of tangible personal property are in this State if:

§235-37 Apportionment; sales factor; nontangible personalty. Sales, other than sales of tangible personal property, are in this State:

§235-38 Equitable adjustment of formula. If the allocation and apportionment provisions of this part do not fairly represent the extent of the taxpayer's business activity in this State, the taxpayer may petition for or the director of taxation may require, in respect to all or a…

[§235-38.5] Application. It is the intent of the legislature that in administering this chapter, this part, and sections 235-4 and 235-5 or as a member of or administering the multistate tax compact under chapter 255 the department of taxation shall not use or allow the use of th…

§235-39 Citation of part. This part may be cited as the "Uniform Division of Income for Tax Purposes Act". [L 1967, c 33, pt of §1; HRS §235-39]

§235-4 Income taxes by the State; residents, nonresidents, corporations, estates, and trusts. (a) Residents. The tax imposed by this chapter applies to the entire income of a resident, computed without regard to source in the State. (b) Nonresidents. In the case of a nonresident,…

[§235-4.2] Persons lacking physical presence in the State; nexus presumptions. A person that lacks physical presence in the State is presumed to be systematically and regularly engaging in business in the State and taxable under this chapter if, during the current or preceding ca…

§235-4.5 Taxation of trusts, beneficiaries; credit. (a) There shall be excluded from gross income any intangible income, such as dividends and interest, earned by a trust sited in this State to the extent that, during the taxable year of the trust, the beneficial interest in the …

§235-5.5 Individual housing accounts. (a) There shall be allowed as a deduction from gross income the amount, not to exceed $5,000, paid in cash during the taxable year by an individual taxpayer to an individual housing account established for the individual's benefit to provide …

PART III. INDIVIDUAL INCOME TAX §235-51 Tax imposed on individuals; rates. (a) There is hereby imposed on the taxable income of every: a tax determined in accordance with the following table: In the case of any taxable year beginning after December 31, 2017: If the taxable income…

§235-51.5 Pass-through entity taxation election. (a) A partnership or S corporation may elect to be taxed pursuant to this section as an electing pass-through entity in any tax year; provided that a separate election shall be made for each taxable year. An election made pursuant …

§235-52 Tax in case of joint return or return of surviving spouse. In the case of a joint return of a husband and wife under section 235-93, the tax imposed, as near as may be, by this chapter shall be twice the tax which would be imposed if the taxable income were cut in half. F…

§235-53 Tax tables for individuals. (a) Imposition of tax table tax: (b) Section inapplicable to certain individuals. This section shall not apply to: (c) Tax treated as imposed by section 235-51. For purposes of this chapter, the tax imposed by this section shall be treated as t…

§235-54 Exemptions. (a) In computing the taxable income of any individual, there shall be deducted, in lieu of the personal exemptions allowed by the Internal Revenue Code, personal exemptions computed as follows: Ascertain the number of exemptions which the individual can lawful…

§235-55 Tax credits for resident taxpayers. (a) Whenever an individual or person liable to the taxes imposed upon individuals, who is a resident of the State or who has filed a joint resident return under section 235-93, has become liable for income taxes to a state, or to the Di…

§235-55.6 Expenses for household and dependent care services necessary for gainful employment. (a) Allowance of credit. Adjusted gross income Applicable percentage Not over $25,000 25% Over $25,000 but 24% not over $30,000 Over $30,000 but 23% not over $35,000 Over $35,000 but 22…

§235-55.7 Income tax credit for low-income household renters. (a) As used in this section: (b) Each resident taxpayer who occupies and pays rent for real property within the State as the resident taxpayer's residence or the residence of the resident taxpayer's immediate family wh…

§235-55.75 Refundable earned income tax credit. (a) [Repeal and reenactment on December 31, 2027. L 2023, c 163, §5.] Each qualifying individual taxpayer may claim a refundable earned income tax credit. Unless otherwise provided by law, the tax credit, for the appropriate taxable…

§235-55.85 Refundable food/excise tax credit. (a) Each individual taxpayer, who files an individual income tax return for a taxable year, and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Hawaii state individual in…

§235-55.91 Credit for employment of vocational rehabilitation referrals. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a credit for employment of vocational rehabilitation referrals which shall be deductible from the taxpayer's net income…

§235-59 Decedents. In respect of a decedent, the determination of the income of the taxable period in which falls the date of the decedent's death, and the determination of the income of the estate and of the persons who acquire rights from the decedent or by reason of the decede…

§235-6 Foreign manufacturing corporation; warehousing of products. (a) For the purposes of sections 235-21 to 235-39, a foreign corporation engaged in the business of manufacturing without the State, having its manufactured products warehoused in this State by another person who …

WITHHOLDING AND COLLECTION OF TAX AT SOURCE §235-61 Withholding of tax on wages. (a) As used in this section: "Employee" includes an officer or elected official, or any other employee. "Employer" means: provided that the term employer shall not include any government that is not …

§235-62 Return and payment of withheld taxes. (a) Every employer required by this chapter to withhold taxes on wages paid in any quarter of the calendar year shall make a return of such wages to the department of taxation on or before the fifteenth day of the calendar month follo…

§235-63 Statements to employees. (a) Every employer required to deduct and withhold any tax on the wages of any employee shall furnish to each employee in respect of the employee's employment during the calendar year, on or before January 31 of the succeeding year, or if the empl…

§235-64 Taxes withheld by employer held in trust; employer's liability. (a) All taxes withheld by any employer under section 235-61 shall be held in trust by the employer for the State and for the payment of the same to the collector in the manner and at the time required by this…

[§235-64.2] Withholdings by partnerships, estates, and trusts. Partnerships, estates, and trusts shall withhold an amount equal to the highest marginal tax rate applicable to a nonresident taxpayer multiplied by the amount of the taxpayer's distributive share of income attributab…

§235-66 Further withholdings at source; crediting of withheld taxes. (a) The department of taxation by regulation, may require the deduction and withholding of tax from any gross income or adjusted gross income of a nonresident, in order to collect the tax imposed by this chapter…

§235-67 Indemnity of withholder. Every person required to withhold a tax under sections 235-61 to 235-64, or under regulations adopted pursuant to section 235-66(a), is made liable for such tax and is relieved of liability for or upon the claim or demand of any other person for t…

§235-68 Withholding of tax on the disposition of real property by nonresident persons. (a) As used in this section: "Nonresident person" means every person other than a resident person. "Property" or "real property" has the meaning as the same term is defined in section 231-1. "R…

[§235-69] Voluntary deduction and withholding of state income tax from unemployment compensation. An individual receiving unemployment compensation benefits under chapter 383 may elect to have state income tax deducted and withheld from the individual's payment of unemployment co…

§235-7 Other provisions as to gross income, adjusted gross income, and taxable income. (a) There shall be excluded from gross income, adjusted gross income, and taxable income: (b) There shall be included in gross income, adjusted gross income, and taxable income: (c) The deducti…

§235-7.3 Royalties derived from patents, copyrights, or trade secrets excluded from gross income. (a) In addition to the exclusions in section 235-7, there shall be excluded from gross income, adjusted gross income, and taxable income, amounts received by an individual or a quali…

§235-7.5 Certain unearned income of minor children taxed as if parent's income. (a) In the case of any child to whom this section applies, the tax imposed by this chapter shall be equal to the greater of: (b) This section shall apply to any child for any taxable year if: (c) For …