No Tax on Tips Calculator for Hawaii (2026)
Calculate how much Hawaii workers save now that tips are exempt from federal income tax under the OBBBA.
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Your Annual Tax Savings in Hawaii
Tips Tax Exemption in Hawaii
Under the One Big Beautiful Bill Act (OBBBA), workers in Hawaii who earn tips can deduct 100% of their tip income from federal income tax for tax years 2025 through 2028.
Hawaii Minimum Wage for Tipped Workers
The minimum wage in Hawaii is $14.00/hour. Tipped workers may be paid a lower base wage of $12.75/hour, with tips expected to make up the difference. This makes the federal tip tax exemption especially valuable for Hawaii workers.
Top Tipped Industries in Hawaii
- Resort workers
- Tour guides
- Restaurant servers
- Bartenders
State Income Tax Applies
Hawaii has a state income tax rate of 8.3%. While the OBBBA exempts tips from federal income tax, Hawaii may still tax tip income at the state level. Check with a local tax professional for details.
How the No Tax on Tips Law Works
What Qualifies
- Cash tips received directly from customers
- Credit/debit card tips
- Tips from tip pools or tip sharing
- Service charges distributed as tips
What Doesn't Change
- FICA taxes still apply: You still pay 6.2% Social Security + 1.45% Medicare on tip income
- Tips must still be reported: Report all tips to your employer and on your tax return
- Income limit: The exemption applies to workers earning less than $160,000 per year
Federal Calculators
Compare with the federal-level tools: Tip Tax Savings (Federal) | Overtime Tax Savings (Federal)