Tax Planning for Physicians in Hawaii (2026)
Physicians in Hawaii face a top rate of 11% on top of the 37% federal bracket and payroll taxes. This guide summarizes the 2026 Hawaii rules that matter most to doctors, dentists and practice owners.
Hawaii income tax rates for 2026
Hawaii's top 2026 rate is 11%. Brackets apply to state taxable income.
Single
| Rate | Taxable income |
|---|---|
| 1.4% | $0 to $9,600 |
| 3.2% | $9,600 to $14,400 |
| 5.5% | $14,400 to $19,200 |
| 6.4% | $19,200 to $24,000 |
| 6.8% | $24,000 to $36,000 |
| 7.2% | $36,000 to $48,000 |
| 7.6% | $48,000 to $125,000 |
| 7.9% | $125,000 to $175,000 |
| 8.25% | $175,000 to $225,000 |
| 9% | $225,000 to $275,000 |
| 10% | $275,000 to $325,000 |
| 11% | Over $325,000 |
Married filing jointly
| Rate | Taxable income |
|---|---|
| 1.4% | $0 to $19,200 |
| 3.2% | $19,200 to $28,800 |
| 5.5% | $28,800 to $38,400 |
| 6.4% | $38,400 to $48,000 |
| 6.8% | $48,000 to $72,000 |
| 7.2% | $72,000 to $96,000 |
| 7.6% | $96,000 to $250,000 |
| 7.9% | $250,000 to $350,000 |
| 8.25% | $350,000 to $450,000 |
| 9% | $450,000 to $550,000 |
| 10% | $550,000 to $650,000 |
| 11% | Over $650,000 |
Pass-through entity tax (SALT workaround)
Yes. The state has an elective pass-through entity tax (PTET) that partnerships and S corporations can use to deduct state income tax at the entity level.
For physician practice owners, the PTET matters more in 2026 because the federal SALT deduction for individuals phases back down toward $10,000 once modified AGI passes $505,000. Read our guide to the pass-through entity tax for physicians.
Local income taxes
Hawaii physicians generally do not face a separate city or county income tax on wages.
Planning notes for Hawaii physicians
- Hawaii's top rate is 11% on income over $325,000 (single) or $650,000 (joint), the second-highest top rate in the country.
- Hawaii also taxes capital gains at a lower capped rate than ordinary income, which changes the math on practice and real estate sales.
Federal strategies that apply in every state
State tax is only part of the picture. The federal rules drive most of the savings for physicians in Hawaii:
- W-2 physician tax strategies: maximize 401(k)/403(b), 457(b), HSA and the backdoor Roth.
- 1099 physician tax planning: solo 401(k), deductions and the S corporation decision.
- Practice owners: entity, compensation, cash balance plans and exit planning.
- Real estate and cost segregation for physicians with time to participate.
City guides for Hawaii physicians
Local taxes and planning notes for physicians in Honolulu, Hilo, Kahului. Our planning is delivered virtually, so location does not limit access.
Guides by specialty
Surgeons · Anesthesiologists · Radiologists · Orthopedic Surgeons · Cardiologists · Dentists · Dermatologists · Emergency Physicians · Gastroenterologists · Ophthalmologists · Neurosurgeons · Plastic Surgeons · Psychiatrists · Hospitalists · Pain Management Physicians
Frequently asked questions
What is the Hawaii state income tax rate for physicians in 2026?
Hawaii has a top rate of 11% for 2026. Your effective state rate depends on deductions and filing status.
Does Hawaii have a pass-through entity tax?
Yes. The state has an elective pass-through entity tax (PTET) that partnerships and S corporations can use to deduct state income tax at the entity level.
Can GenWealth 360 help physicians in Hawaii?
Yes. GenWealth 360 provides tax planning for physicians, dentists and practice owners in all 50 states, including Hawaii, through virtual meetings.
Get a tax plan built for your situation
GenWealth 360 builds proactive, tax-first plans for physicians, dentists and medical practice owners in all 50 states. Start with a conversation about your income, entity and goals.
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Sources
This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.