Local guides / Hawaii / Honolulu
Gig Workers in Honolulu, HI: taxes and retirement for 2026
For rideshare and delivery drivers, shoppers and app-based workers in Honolulu, HI. Hawaii has a graduated state income tax for 2026: 1.4% to 11% (top rate starts at $325,000 for single filers). Here are the 2026 rules, a worked example and the official sources.
What's different in Honolulu
- Local income tax
- No city income tax in Honolulu.
- City and County of Honolulu (Oahu) County Surcharge on Hawaii General Excise Tax (GET)
- Business income on Oahu that is taxed at the state's 4% GET rate, which covers most services and retail sales, also carries a 0.5% county surcharge (4.5% total), reported on state Forms G-45/G-49. Businesses may pass the tax on to customers at up to 4.712%. The surcharge runs from Jan. 1, 2007 through Dec. 31, 2030 and does not apply to the 0.5% wholesale or 0.15% insurance-commission rates.
- Also worth knowing
- No city or county income tax. The GET and the county surcharge are collected by the Hawaii Department of Taxation, not by the city; the 4.712% maximum pass-on rate for Oahu runs through Dec. 31, 2030. No general city business license requirement was confirmed on an official city site. No local gig-worker or freelancer pay ordinances were found. Population: Census Bureau Vintage 2025 estimate for July 1, 2025 (https://www2.census.gov/programs-surveys/popest/datasets/2020-2025/cities/totals/sub-est2025.csv).
Hawaii rules for gig workers
- State income tax (2026)
- Hawaii has a graduated state income tax for 2026: 1.4% to 11% (top rate starts at $325,000 for single filers). Rates are percentages. Act 46 (2024) widened the brackets for 2025, and the 2026 brackets are the same as 2025. Single filers: 1.4% up to $9,600, rising through 12 brackets in all to 11% on taxable income over $325,000. The single standard deduction rises to $8,000 in 2026, and the brackets widen again in 2027 and 2029.
- State estimated tax
- You generally must pay estimated tax if you expect to owe at least $500 after withholding and credits, and your withholding and credits will be less than the smaller of 60% of this year's tax or 100% of last year's tax. April 20, June 20 and September 20, 2026, and January 20, 2027 (the 20th, not the 15th). The current-year safe harbor is 60%, not the federal 90%. Form N-200V.
- Hawaii general excise tax (GET)
- GET applies to gross income from all business activities, including independent contractors and freelancers. The rate is 4% for most services and retail sales, 0.5% for wholesaling and manufacturing, and 0.15% for insurance commissions. Honolulu, Kauai, Hawaii and Maui counties each add a 0.5% surcharge on 4%-rate activity through 2030. A GET license costs a one-time $20, and periodic returns are due on the 20th of the month after each period.
- ABC test for unemployment insurance (HRS 383-6)
- Services for wages are treated as employment unless the Department of Labor and Industrial Relations is shown that the worker is free from control or direction, the service is outside the usual course or places of the business, and the worker is customarily engaged in an independently established trade of the same nature.
- State retirement program
- Hawaiʻi Retirement Savings Program is launching. It is built around W-2 employers and does not cover 1099 contractors through the employer mandate.
Federal rules for 2026
Mileage is the big deduction
Business miles are deductible at the IRS standard rate: $0.725 a mile for miles driven January through June 2026 and $0.76 from July 1. Keep a log of each trip; Gigaverse lets you start and stop trips in the app.
App fees and phone
Platform service fees, a business share of your phone and plan, insulated bags and parking or tolls while working are deductible.
Self-employment tax
On top of income tax, self-employed people pay 15.3% on 92.35% of net profit: 12.4% Social Security up to the 2026 wage base of $184,500, plus 2.9% Medicare with no cap. Half of it is deductible.
Quarterly estimated taxes
No one withholds tax from self-employment income, so you generally pay estimates four times a year if you expect to owe $1,000 or more. For 2026 income the federal dates are April 15, June 15 and September 15, 2026, and January 15, 2027. Paying 100% of last year's tax (110% if your AGI was over $150,000) in four equal installments avoids the underpayment penalty.
A worked example
| Mileage deduction | $11,138 |
|---|---|
| Net profit after mileage | $33,863 |
| Self-employment tax | $4,785 |
| Self-employment tax the mileage saves | $1,574 |
Miles split evenly between the two 2026 rates. Federal figures only; the mileage also lowers income tax. Computed from 2026 IRS limits (Notice 2025-67, Rev. Proc. 2025-32) and the SSA wage base.
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Questions
Is there a local income tax in Honolulu?
No city income tax applies in Honolulu. Hawaii has a graduated state income tax for 2026: 1.4% to 11% (top rate starts at $325,000 for single filers).
What local business taxes apply to self-employed gig workers in Honolulu?
City and County of Honolulu (Oahu) County Surcharge on Hawaii General Excise Tax (GET): Business income on Oahu that is taxed at the state's 4% GET rate, which covers most services and retail sales, also carries a 0.5% county surcharge (4.5% total), reported on state Forms G-45/G-49. Businesses may pass the tax on to customers at up to 4.712%. The surcharge runs from Jan. 1, 2007 through Dec. 31, 2030 and does not apply to the 0.5% wholesale or 0.15% insurance-commission rates.
Do gig workers in Hawaii pay state income tax?
Hawaii has a graduated state income tax for 2026: 1.4% to 11% (top rate starts at $325,000 for single filers). Rates are percentages. Act 46 (2024) widened the brackets for 2025, and the 2026 brackets are the same as 2025. Single filers: 1.4% up to $9,600, rising through 12 brackets in all to 11% on taxable income over $325,000. The single standard deduction rises to $8,000 in 2026, and the brackets widen again in 2027 and 2029.
When are Hawaii estimated tax payments due for 2026?
You generally must pay estimated tax if you expect to owe at least $500 after withholding and credits, and your withholding and credits will be less than the smaller of 60% of this year's tax or 100% of last year's tax. April 20, June 20 and September 20, 2026, and January 20, 2027 (the 20th, not the 15th). The current-year safe harbor is 60%, not the federal 90%. The state form is N-200V.
Are there other Hawaii taxes for self-employed gig workers?
Hawaii general excise tax (GET): GET applies to gross income from all business activities, including independent contractors and freelancers. The rate is 4% for most services and retail sales, 0.5% for wholesaling and manufacturing, and 0.15% for insurance commissions. Honolulu, Kauai, Hawaii and Maui counties each add a 0.5% surcharge on 4%-rate activity through 2030. A GET license costs a one-time $20, and periodic returns are due on the 20th of the month after each period.
What Hawaii laws affect independent contractors and gig workers?
ABC test for unemployment insurance (HRS 383-6): Services for wages are treated as employment unless the Department of Labor and Industrial Relations is shown that the worker is free from control or direction, the service is outside the usual course or places of the business, and the worker is customarily engaged in an independently established trade of the same nature.
Track it in one place
Gigaverse estimates your quarterly taxes from what you actually earn, logs business trips, categorizes expenses from your bank and answers money questions with your own numbers. Retirement accounts are coming soon.
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Sources
- files.hawaii.gov/tax/news/announce/ann24-03.pdf
- files.hawaii.gov/tax/forms/current/n11ins.pdf
- labor.hawaii.gov/wsd/files/2022/06/HWHL-1_MW-Poster_Rev_6-22.pdf
- tax.hawaii.gov/geninfo/get/
- data.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0383/HRS_0383-0006.htm
- tax.hawaii.gov/geninfo/countysurcharge/
State and local facts researched from official sources and independently re-checked; last verified October 2026, next scheduled review 2027-01-02. Educational information for 2026, not tax, legal or investment advice. Rules change; check the official sources listed and a tax professional for your situation. Gigaverse AI, Inc. is a financial technology company, not a bank, and not itself a registered investment adviser or broker-dealer.