How Hawaii compares
Ranked against the other 49 states on the figures we hold. Rates that combine state and local components — sales tax, the minimum wage where it varies by region — are shown on this page but not ranked, because a single number would misstate them.
| Figure | HI | Nationally | In its region |
|---|---|---|---|
| PopulationUS Census Bureau, Vintage 2025 estimates, July 1, 2025 | 1,432,820 | 40th highest of 50 | 8 of 11 |
| GDP ($bn)Bureau of Economic Analysis, 2025 | 124.6 | 40th highest of 50 | 8 of 11 |
| Median household incomeUS Census Bureau, ACS 2024 1-year, 2024 | $100,745 | 4th highest of 50 | 1 of 11 |
| Unemployment rateBureau of Labor Statistics, LAUS (seasonally adjusted, preliminary), September 2026 | 2.8% | 5th lowest of 50 | 1 of 11 |
| Foreign-born shareUS Census Bureau, ACS 2024 1-year, 2024 | 18.6% | 7th highest of 50 | 3 of 11 |
| Property tax ratechecked Nov 2026; confirm with the Hawaii legislature | 0.28% | 1st lowest of 50 | 1 of 11 |
| Deposit return window (days)checked Nov 2026; confirm with the Hawaii legislature | 14 | tied 1st lowest of 50 | 1 of 11 |
| Eviction notice (days)checked Nov 2026; confirm with the Hawaii legislature | 5 | tied 23rd highest of 50 | 6 of 11 |
- State income tax: yes41 of 50 states answer the same way
- At-will employment: yesthe same in all 50 states — it does not set Hawaii apart
- Paid sick leave required: no30 of 50 states answer the same way
- Paid family leave: no38 of 50 states answer the same way
- Workers' comp required: yes49 of 50 states answer the same way
- Rent control permitted: no46 of 50 states answer the same way
- Annual report required: yes43 of 50 states answer the same way
Statistical figures: US Census Bureau, Vintage 2025 estimates (July 1, 2025) · US Census Bureau, ACS 2024 1-year (2024) · Bureau of Economic Analysis (2025) · Bureau of Labor Statistics, LAUS (seasonally adjusted, preliminary) (September 2026) · SBA Office of Advocacy, 2025 Small Business Profiles (2025). Tax, wage, business and tenancy figures are recorded from state sources and were last checked on 2026-11-05 — confirm anything you are about to act on with the Hawaii legislature.
What's changing in Hawaii
Enacted changes with a fixed effective date. Contracts, payroll and leases signed now may run past these dates.
Coming up
- January 1, 2028Minimum wage rises to $18.00/hr
Under Act 114 (2022).
Took effect in the last 12 months
- January 1, 2026Minimum wage rose to $16.00/hrSource ↗
Checked against official sources on 2026-11-05.
How long you have in Hawaii
The periods that decide whether something is on time. Days are calendar days unless the underlying rule says otherwise.
- Return a security deposit within
- 14 days
- Eviction notice before filing
- 5 days
- LLC formation processed in
- 5–10 days
- Overtime starts after
- 40 hrs/week
AI Legal Insights — Hawaii
AI-generated · Updated July 2026
Hawaii operates under at-will employment but mandates paid sick leave for employers with 100 or more employees, and its General Excise Tax (GET) applies broadly to business gross income rather than just retail sales. The state's unique legal environment includes a progressive income tax up to 11% and no paid family leave requirement, creating distinct compliance considerations for employers.
Hawaii's business climate features 131,000 small businesses and a low 2.9% unemployment rate, supported by a modest $50 LLC filing fee and the nation's lowest property tax rate at 0.28%. However, the 4% GET on gross revenue, high minimum wage of $14/hour, and top income tax bracket of 11% increase operational costs for businesses.
With 18.7% of residents foreign-born, Hawaii's immigration landscape is shaped by tourism, agriculture, and military sectors that rely on international workers. The state's geographic isolation and unique labor demands create specific visa utilization patterns, particularly for H-2B seasonal workers and specialized healthcare professionals.
- ›Explicitly address GET liability allocation in contracts since the 4% tax applies to gross business income across most transactions
- ›Include paid sick leave accrual and usage terms compliant with Hawaii's 100-employee threshold mandate
- ›Specify at-will employment disclaimers while acknowledging statutory exceptions like whistleblower protections
AI-generated insights · Verify with a licensed attorney before relying on this information.
🔍 What documents do you need in Hawaii?
Select your situation — get instant recommendations tailored to Hawaii law.
Employment Laws
Hawaii labor regulations
Hawaii has a distinctive labor landscape shaped by its island economy, high cost of living, and tourism-driven workforce. The minimum wage has been $16.00/hr since January 1, 2026, and is scheduled to rise to $18.00/hr on January 1, 2028. Hawaii does not have a paid family leave program, but its Temporary Disability Insurance (TDI) law requires employers to provide short-term disability benefits. The state also requires employers to provide health insurance to employees who work 20+ hours a week under the Prepaid Health Care Act.
| Law | HI Rule | Federal Floor |
|---|---|---|
| Minimum Wage | $16.00/hr since January 1, 2026; rises to $18.00/hr on January 1, 2028 | $7.25/hr |
| Overtime | After 40 hrs/week at 1.5× the regular rate | FLSA: after 40 hrs/week |
| Paid Sick Leave | No general statewide paid sick leave mandate for private employers | None (federal) |
| Paid Family Leave | No state paid family leave program; TDI covers short-term non-work disability only | FMLA: 12 weeks unpaid |
| Family Leave (Unpaid) | Employers with 100+ employees must provide job-protected unpaid family leave under the Hawaii Family Leave Law | FMLA: 50+ employees, 12 weeks unpaid |
| Temporary Disability Insurance | Employers must provide TDI coverage that partially replaces wages during a non-work-related illness or injury | No federal requirement |
| Prepaid Health Care | Employers must provide health insurance for employees working 20+ hrs/week | ACA employer mandate applies to 50+ FTEs |
| Workers Comp | Mandatory for employers with 1+ employees | Federal employees: yes |
| Final Paycheck | On discharge, at the time of discharge or the next working day; on resignation, by the next regular payday | No federal requirement |
- Hawaii's Prepaid Health Care Act (1974) requires employers to provide health insurance to employees who work 20+ hours a week for 4 consecutive weeks; no other state has a comparable employer mandate.
- The Hawaii Employment Relations Act governs labor relations and collective bargaining for private-sector employees not covered by federal labor law.
- Hawaii is one of a handful of states (with California, New Jersey, New York and Rhode Island) that require temporary disability insurance for non-work-related illness or injury.
- Hawaii's fair employment law prohibits discrimination based on race, sex, age, religion, color, ancestry, disability, marital status, arrest and court record, sexual orientation, and gender identity, among other grounds.
- Non-compete agreements are reviewed for reasonableness; state law bars non-compete and non-solicit clauses in employment contracts for technology businesses.
Sources: U.S. Department of Labor state minimum wage table · state labor agencies (checked Nov 2026)
Landlord-Tenant Laws
Hawaii rental regulations
Hawaii has a severe housing shortage, particularly on Oahu, and some of the highest rents in the nation. Security deposits are capped at one month's rent, and landlords must return deposits within 14 days — one of the shorter return windows in the US. There is no statewide rent control. Eviction for non-payment starts with a 5-day notice to pay or vacate. Many properties sit on leasehold land, which adds complexity for renters and buyers.
| Topic | HI Rule |
|---|---|
| Security Deposit | Capped at 1 month's rent (a separate pet deposit of up to 1 month's rent may also be allowed) |
| Deposit Return | Within 14 days after the tenancy ends, with a written itemized statement of any deductions |
| Rent Control | No statewide rent control |
| Eviction Notice (Non-Payment) | 5-day written notice to pay rent or vacate before the landlord can file for summary possession |
| Month-to-Month Termination | Landlord must give at least 45 days' written notice; tenant must give at least 28 days' written notice |
| Rent Increases | For month-to-month tenancies, at least 45 days' written notice of a rent increase |
| Landlord Entry | At least 2 days' notice before entering, except in emergencies |
| Habitability | Landlords must keep the unit fit and habitable and make repairs; tenants have limited remedies after giving written notice of needed repairs |
| Retaliation | Landlords may not raise rent, reduce services, or evict in retaliation for a tenant's good-faith complaint about conditions |
Both landlords and tenants have enforceable rights under Hawaii law. Document all communications and keep copies of your lease agreement. Use AI review to spot risky clauses before signing.
Starting a Business
Hawaii LLC formation guide
Hawaii's economy (about $125 billion in GDP) is shaped by tourism, the military, agriculture, and a growing technology sector. Forming an LLC costs $50, and the annual report fee is $15 — among the lowest in the nation. Operating costs are high: labor, real estate, and shipping add significant overhead. Hawaii's General Excise Tax (GET) — 4%, or about 4.5% on average with county surcharges — applies to virtually all business revenue, not just retail sales.
Step-by-step LLC formation
- 1Choose a business name
Name must include "LLC" or "Limited Liability Company"; check availability at hbe.ehawaii.gov or through the DCCA Business Registration Division
hbe.ehawaii.gov - 2File Articles of Organization$50
File with the Hawaii Department of Commerce and Consumer Affairs (DCCA) online or by mail; $50 filing fee
hbe.ehawaii.gov - 3Designate a registered agent
Must have a physical Hawaii address; can be an individual or a commercial registered agent service
- 4Obtain an EIN from the IRS
Free at irs.gov; needed for banking, hiring employees, and Hawaii tax registration
- 5Register for Hawaii General Excise Tax
Register with the Hawaii Department of Taxation (tax.hawaii.gov); the GET applies to nearly all business receipts at 4% plus any county surcharge
tax.hawaii.gov - 6File annual report$15
Due each year by the end of the quarter in which the LLC's registration anniversary falls; $15 fee
- 7Check professional licensing
Hawaii requires licenses for many professions and trades; apply through the DCCA Professional and Vocational Licensing Division
Every LLC also needs a free EIN from the IRS (Form SS-4). Apply online at irs.gov — takes about 15 minutes and is required to open a business bank account.
Popular IRS Forms
Most-filed federal forms for Hawaii taxpayers
Fill these out online with plain-English guidance — every field explained, no accountant required. Download as a ready-to-file PDF when done.
The main annual federal income tax return every taxpayer files.
Fill out free →Give your SSN or EIN to a client before getting paid as a contractor.
Fill out free →Report $600+ paid to independent contractors during the year.
Fill out free →Tell your employer how much federal tax to withhold from pay.
Fill out free →Report income and expenses from a sole proprietorship or LLC.
Fill out free →Report payroll taxes withheld from employees each quarter.
Fill out free →Get an automatic 6-month extension to file your 1040.
Fill out free →The year-end wage statement employers issue to each employee.
Fill out free →Review Your Hawaii Contract — Free
Upload any document. Our AI flags risky clauses, explains legal jargon, and gives you a plain-English risk report specific to Hawaii law.
Federal Offices
United States government offices in Hawaii
Walk-in assistance by appointment only. Call (844) 545-5640 to schedule, or book online at irs.gov.
Free Legal Aid
Hawaii legal assistance organizations
These organizations provide free or reduced-cost civil legal services to qualifying Hawaii residents.
Before your consultation: upload your document for a free AI risk scan — understand the key issues before meeting an attorney.
Free AI contract review →Latest Tax & Business News
Check these official sources for latest Hawaii tax & business news:
Upcoming Deadlines
Forms on BrieflyGo
Business Resources
Top Hawaii Cities
Localized legal, tax & contract help for each city.
Got a Hawaii government document?
Upload it — AI reads and explains every line in plain English.
BrieflyGo Tools for Hawaii
AI-powered legal and tax tools — free to start, no login required.
FreeUpload any contract — AI highlights risks, explains every clause in plain English, and suggests fixes in seconds.
Review free →
Federal + state deadlines in one place. Never miss a quarterly payment or filing date again.
Open calendar →
NDA, lease, employment contracts and 200+ more. AI pre-fills from your details — ready in minutes.
Browse templates →
IRS 1040, 1099-NEC, W-9, USCIS forms — search the full catalog, fill online, download as PDF.
Find forms →Common Questions
Hawaii legal & business FAQ
Review Your Hawaii Contract — Free
Upload any document. Our AI flags risky clauses, explains legal jargon, and gives you a plain-English risk report specific to Hawaii law.