Hawaii pay stubs: state income tax and TDI deductions
Hawaii paychecks show graduated state income tax and, at many employers, a Temporary Disability Insurance deduction capped at 0.5% of weekly wages. Details.
Last reviewed
Rates on this page are for the 2026 tax year and are reviewed every January.
State income tax
Hawaii has one of the more detailed income tax structures in the country, with a long list of graduated brackets. The state has been widening those brackets and raising the standard deduction in stages, so withholding tables change from year to year. Employees set their state withholding on Form HW-4, Hawaii's own withholding certificate, which is separate from the federal W-4.
Other state payroll deductions
Hawaii is one of the few states that requires employers to provide Temporary Disability Insurance, which replaces part of a worker's wages during an off-the-job illness or injury. The employer can pay the whole cost or share it with employees. If employees share the cost, their deduction cannot be more than 0.5% of their weekly wages, and it also cannot exceed the maximum weekly deduction the Disability Compensation Division publishes each year. Many employers deduct the TDI share; others pay it all, in which case no TDI line appears on the stub.
Hawaii also requires most employers to provide health coverage under the Prepaid Health Care Act. Any employee share of premiums shows up as a deduction, but the rules about how much can be charged are specific, so check with the Department of Labor and Industrial Relations before setting it up.
Local taxes
Hawaii's counties do not tax income, so there is no local income tax line on a Hawaii pay stub.
Federal withholding still applies
The federal side of a Hawaii pay stub has three standard lines:
- Federal income tax, calculated from the answers on Form W-4.
- Social Security at 6.2%, which stops once year-to-date wages reach the annual Social Security wage base.
- Medicare at 1.45% with no cap, plus 0.9% Additional Medicare Tax on wages over $200,000 for the year.
Creating a Hawaii pay stub with PayStubNest
Enter the hours worked and hourly rate, or an annual salary, and choose Hawaii as the work state. The exact figures on each stub depend on the employee's pay, pay frequency, W-4 choices, deductions and year-to-date totals, so no two paychecks are quite alike. PayStubNest calculates all of it automatically, applying federal and Hawaii withholding and carrying year-to-date totals forward from one stub to the next. You can preview a stub for free and only pay when you download it.
Record-keeping tip
If you deduct TDI, record both the percentage and the weekly cap you used for the year, since the cap changes annually. That makes it easy to show each deduction stayed within the limit. See the Hawaii Department of Taxation and the Disability Compensation Division.