Hawaii payroll taxes and calculator for employers (2026)

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Hawaii's new employer unemployment rate is 2.40% on the first $64,500 of each worker's wages in 2026, set by the Department of Labor and Industrial Relations (DLIR) Unemployment Insurance Division, and Hawaii has a graduated state income tax (checked October 16, 2026). Hawaii also requires you to provide temporary disability insurance and health coverage, and the law caps how much of each you can take from the employee's pay.

SUTA wage base
$64,500
New employer SUTA rate
2.40%
State income tax
Yes
Minimum wage
$16.00
On this page

Hawaii's employer mandates: TDI, health care and a big wage base

Three Hawaii laws, all handled by DLIR's Disability Compensation Division, cover workers comp, Temporary Disability Insurance (TDI) and Prepaid Health Care (PHC). Workers comp applies from your first employee, full-time or part-time; check the division's pages for the exact TDI and PHC eligibility rules, which our research did not record.

TDI: you buy it, the worker can share it

You arrange TDI coverage and pay the premium. You may withhold up to half the premium, but no more than 0.5% of the employee's weekly wages. For 2026 the maximum weekly wage base is $1,500.21, so the most you can deduct is $7.50 a week.

Prepaid Health Care: the employee share is capped

Under PHC the employee's share of health coverage can be no more than 1.5% of wages. The employer pays the remainder. On a $50,000 salary that caps the worker at $750 a year, whatever the plan costs.

The second-highest UI base in our data

Only Washington's base is higher in our state SUTA table. At $64,500, Hawaii UI applies to the entire salary of anyone earning up to that amount. The Schedule C maximum is 5.60%; the US Department of Labor lists a 0.00% minimum. A 0.01% Employment and Training assessment is added on top.

Other Hawaii rules

  • Pay at least twice a month, within 7 days after each pay period ends. Monthly pay needs the employee's election or a director exception (HRS 388).
  • A fired worker is paid at discharge or by the next working day. A worker who quits with at least one pay period's notice is paid at quitting; without notice, on the next payday (HRS 388-3). HRS 388-3 is cited in our notes without a saved official page, so check it on the legislature site.
  • Minimum wage is $16.00. The tip credit is only $1.25 ($14.75 cash), and only if wages plus tips are at least $7.00 above the minimum.
  • Supplemental wages use the aggregate method, not a flat rate, and the withholding tables change every year through 2031.

Hawaii employer payroll facts at a glance

Hawaii employer payroll facts, 2026
ItemHawaii rule or rateOfficial source
SUTA taxable wage base (2026)$64,500source; source
New employer SUTA rate2.40%source; source
SUTA rate range0.00% (DOL table; state page lists maximum only) to 5.60% (Schedule C)
Surcharges and admin feesEmployment and Training (E&T) assessment 0.01%
2027 rates published?no
Unemployment agencyHawaii Department of Labor and Industrial Relations, Unemployment Insurance Divisionsource
State income tax withholdingYes. Graduated; 2026 tables in Booklet A (Rev. 2025, effective Dec 5, 2025 for 2026 withholding, files.hawaii.gov); bracket rates in the appendix not extracted. Supplemental wages use the aggregate method (no flat rate). Tables update yearly through 2031source
Paid leave or disability programsTDI (Temporary Disability Insurance): employer may withhold up to half the premium, capped at 0.5% of weekly wages; 2026 max weekly wage base $1,500.21, max employee deduction $7.50/week. Prepaid Health Care: employee share up to 1.5% of wagessource
Minimum wage 2026$16.00source; source
Tipped cash wage 2026$14.75 ($1.25 tip credit, only if wages plus tips are at least $7.00 above minimum wage)
Minimum wage 2027none announced
New hire reportingWithin 20 days of hire (HRS 576D-16(a))source
Pay frequency ruleAt least twice a month, within 7 days after the end of each pay period; monthly by employee election or director exception (HRS 388; DLIR WSD page)
Final paycheck ruleFired: at discharge or no later than the next working day. Quit with at least one pay period's notice: at quitting. Quit without notice: next regular payday (HRS 388-3)
Workers comp required1+ employees, full-time or part-time (DCD page covers WC, TDI and PHC laws)source
Local income taxesno (not verified today)

Checked October 16, 2026 against the official sources linked in each row.

Registering to run payroll in Hawaii

  1. Get your federal EIN.
  2. Register for withholding with the Hawaii Department of Taxation. The 2026 tables are in Booklet A (posted as 25BkltA.pdf, effective December 5, 2025 for 2026 withholding).
  3. Register with the DLIR Unemployment Insurance Division through its online Employer Registration.
  4. Arrange TDI coverage, a Prepaid Health Care plan and workers comp before the first employee starts. DLIR's Disability Compensation Division oversees all three.
  5. Report new hires within 20 days (HRS 576D-16(a)).

The small business health insurance guide covers how plan costs are quoted, which matters more in Hawaii because coverage is required.

Hawaii employee cost at $50,000

Payroll taxes alone for a new Hawaii employer:

Hawaii employer payroll taxes on one $50,000 employee, 2026 (new employer)
Payroll lineRate x wagesYearly employer cost
Federal Social Security tax6.2% of salary$3,100
Federal Medicare tax1.45% of salary, no cap$725
Federal unemployment tax0.6% of the first $7,000$42
Hawaii UI2.40% x $50,000 (under the $64,500 base)$1,200
Employment and Training assessment0.01% x $50,000$5
TDI and Prepaid Health Care premiumsSet by your insurer and health planNot included
Hawaii tax totalTaxes only$5,072

Source: Hawaii DLIR Unemployment Insurance Division, IRS and SSA 2026 figures, checked Oct 2026. Total excludes TDI and health plan premiums, which vary by carrier.

That is $5,072 in taxes, or 10.14% above salary, before insurance. UI is the reason: at 2.40% on the full $50,000, Hawaii's state line is seven and a half times Arizona's $160. Then add the TDI and health premiums, which depend on your carrier. The employee can be charged at most $250 a year for TDI (0.5% of wages) and $750 for health coverage (1.5%).

Estimated yearly cost to employ this person
$0

The calculator shows federal taxes and Hawaii UI. For a budget that includes benefits, see what payroll costs and workers comp pricing.

Payroll services and PEOs in Hawaii

For Hawaii payroll, the service needs to deduct TDI within the 0.5% and $7.50 weekly caps and keep the PHC employee share under 1.5%. Gusto Simple is $49 a month plus $6 per person (checked October 16, 2026). Our payroll software rankings list published prices for others.

Because Hawaii requires health coverage, a PEO's group plan can be the main reason to use one. Hawaii is on Harbor Compliance's private list of states that license PEOs, which we have not matched to a Hawaii regulator. Compare PEOs ranked by score and PEO pricing.

Frequently asked questions

What is the Hawaii SUTA rate for new employers in 2026?
2.40% on the first $64,500 of each employee's wages, plus a 0.01% Employment and Training assessment, according to the Hawaii DLIR Unemployment Insurance Division. On a $50,000 salary that is $1,205.
How much TDI can Hawaii employers deduct from pay?
Up to half the TDI premium, but no more than 0.5% of weekly wages. For 2026 the maximum weekly wage base is $1,500.21, so the deduction cannot exceed $7.50 a week, according to the DLIR Disability Compensation Division.
Do Hawaii employers have to provide health insurance?
Yes. Under Hawaii's Prepaid Health Care law, administered by the DLIR Disability Compensation Division, employers provide coverage and the employee's share is capped at 1.5% of wages.
How often must Hawaii employers pay?
At least twice a month, within 7 days after the end of each pay period. Monthly pay is allowed if the employee elects it or the director grants an exception (HRS 388).
What is the Hawaii tipped minimum wage?
$14.75 an hour in 2026, a $1.25 tip credit off the $16.00 minimum. The credit applies only if the employee's wages plus tips are at least $7.00 more than the minimum wage, according to the US Department of Labor.
Sources (11)
  1. Hawaii DLIR Unemployment Insurance Division: 2026 contribution rates (checked Oct 16, 2026)
  2. Hawaii DLIR Unemployment Insurance Division: Employer registration (checked Oct 16, 2026)
  3. Hawaii Department of Taxation: Payroll update (checked Oct 16, 2026)
  4. Hawaii Department of Taxation: Booklet A, employer's tax guide (checked Oct 16, 2026)
  5. Hawaii DLIR Disability Compensation Division: 2026 maximum weekly wage base (checked Oct 16, 2026)
  6. Hawaii DLIR Disability Compensation Division: DCD home (checked Oct 16, 2026)
  7. Hawaii State Legislature: HRS 576D-16 (checked Oct 16, 2026)
  8. US Department of Labor: Significant Provisions of State UI Laws, July 2026 (checked Oct 16, 2026)
  9. Social Security Administration: Contribution and benefit base (checked Oct 16, 2026)
  10. Gusto: Gusto pricing page (checked Oct 16, 2026)
  11. dol.gov/agencies/whd/minimum-wage/state (checked October 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.