Tax Planning for Physicians in Hilo, HI (2026)
Physicians in Hilo pay federal tax at up to 37% plus Hawaii income tax (a top rate of 11%). Here is how the 2026 rules apply to doctors, dentists and practice owners in Hilo, HI.
2026 at a glance for Hilo, HI physicians
| Hawaii income tax | Top rate of 11% (2026) |
|---|---|
| State tax on $400,000 of state taxable income | $34,216 single / $28,807 married filing jointly |
| State tax on $1,000,000 (married filing jointly) | $90,432 |
| City income tax | None on wages |
| Pass-through entity tax | Available (elective) |
| Top federal rate | 37% (from $640,600 single / $768,700 joint) |
State tax figures apply Hawaii's 2026 brackets to state taxable income and ignore credits, deductions and local taxes.
Local taxes in Hilo
Hilo does not levy a city income tax, and Hawaii physicians generally do not face a separate city or county income tax on wages. Your tax picture is the federal rules plus Hawaii, which has a top rate of 11%.
State rules that apply in Hilo
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.
- 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.
Where the savings usually come from
For most Hilo physicians, federal planning drives the largest results: W-2 strategies such as 401(k)/403(b), 457(b) and the backdoor Roth; 1099 and locum planning; entity and cash balance plan design for practice owners; and real estate strategies for physicians with time to participate.
More physician tax guides
- Other Hawaii cities: Honolulu, Kahului.
- State rules: Hawaii physician tax guide and all 50 state guides.
- By specialty: Dentists, Ophthalmologists, Hospitalists, Radiologists and every specialty.
- Core strategy: tax planning for physicians, tax planning for medical practice owners, advanced strategies for high-income physicians and S corporation tax planning for physicians, plus the physician tax glossary.
Frequently asked questions
Does Hilo have a city income tax?
No. Hilo does not levy a city income tax on wages.
What state income tax do physicians in Hilo pay?
Hawaii has a top rate of 11% for 2026. On $400,000 of state taxable income, the 2026 brackets produce about $28,807 for a married couple filing jointly, before credits.
Can GenWealth 360 work with physicians in Hilo?
Yes. GenWealth 360 works with physicians, dentists and practice owners nationwide, including Hilo, through virtual meetings. Our office is in Long Beach, California.
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.