A guide to help you understand the ins and outs of business in Hawaii
Hawaii is one of the two states not located in the continental US and the only state outside of North America. It consists of eight main islands 2,000 miles southwest of the continental United States. Hawaii’s capital and largest city is Honolulu. Hawaii is the eighth smallest state in land mass and has the eleventh smallest population at an estimated 1.42 million people. Hawaii’s GDP was $95,744,000,000 in 2019.
The top industries in Hawaii are real estate, arts, entertainment, recreation and food service, and professional and business services.
In 2019, Hawaii exported $44,390 to Qatar, with its top exports being essential oils, perfumery, cosmetics, etc.
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Hawaii has a marginal corporate tax rate that ranges from 4.4% to 6.4% depending on the amount of income the corporation makes. The tax rate is 4.4% for income up to $25,000. For income that is from $25,001 to $100,000, the tax rate rises to 5.4%. As for income higher than $100,000, the tax rate increases to 6.4%, minus $1,250. The island state has one free trade zone in the capital and largest city, Honolulu. Hawaii has 22 credits and incentives established for companies located there. The Quality Farmer Program, Organic Foods Production Tax Credit, and the Research Tax Credit are some examples.