Hawaii Estate Tax 2026: The $5.49M Exemption, Portability, and the Gap the Federal Threshold Can't Fix
Hawaii imposes its own estate tax on estates above $5,490,000 — a threshold set under Hawaii Revised Statutes Chapter 236E that has not risen with inflation the way the federal exemption has. In 2026, the federal exemption is $15,000,000 per person (permanently raised by the One Big Beautiful Bill Act, OBBBA). Hawaii's exemption is $5,490,000. That gap — $9.51 million of estate value that federal law ignores but Hawaii does not — is the central estate planning problem for Hawaii residents and for heirs inheriting from them. Rates run from 10% to 20%, the highest top rate of any state estate tax in the country (tied with Washington). Hawaii offers one significant advantage that most state estate taxes don't: portability. A married couple that timely files a Hawaii estate tax return at the first spouse's death can carry the unused Hawaii exemption forward to the survivor, doubling the effective Hawaii threshold to nearly $10.98M. This guide covers what Hawaii families and their heirs need to know in 2026.
- Exemption: $5,490,000 per decedent under HRS §236E-6, for deaths occurring after January 25, 2022. Hawaii's exemption is NOT indexed to the federal basic exclusion amount — it is a fixed statutory figure set by the Hawaii Legislature. When OBBBA raised the federal exemption to $15M, Hawaii's $5.49M exemption remained unchanged.1
- Rates: Graduated, 10% to 20%, on the amount of the taxable estate exceeding the exemption. The rate brackets begin at 10% on the first $1M above the exemption and step up to a top marginal rate of 20% on taxable amounts above $15,490,000. See rate table below.1
- Portability: YES — Hawaii allows spousal portability. A surviving spouse can inherit the deceased spouse's unused Hawaii estate tax exemption — up to $5.49M — by timely filing Form M-6 and completing Part 2. This is one of the few states that allows portability; most state estate taxes do not. A couple that uses portability correctly has a combined Hawaii exemption of up to $10.98M.2
- No Hawaii gift tax: Hawaii does not impose a state-level gift tax. Lifetime gifts reduce the federal estate (through the unified credit) but do not trigger additional Hawaii estate tax. This makes Hawaii one of the most gift-tax-friendly estate tax states in the country — the same planning tools that work federally (annual exclusion gifts, lifetime transfers above the annual exclusion) work in Hawaii without additional state-level cost.
- No Hawaii inheritance tax: Hawaii has no inheritance tax based on the beneficiary's relationship to the decedent. The estate pays the Hawaii estate tax before distributions; individual heirs do not pay Hawaii tax on what they receive.
- Filing deadline: 9 months from date of death — matching the federal Form 706 deadline. Extensions of up to 6 months are available via Form M-68, but extensions do not extend the time to pay. Tax owed at 9 months accrues interest thereafter.2
- Form M-6 — Hawaii Estate Tax Return is filed with the Hawaii Department of Taxation. Non-taxable estates may need to file M-6 solely to elect portability (see below).2
- The Hawaii–federal gap: Estates between $5.49M and $15M owe Hawaii estate tax but zero federal estate tax (below federal threshold). This gap — $9.51M of estate value — is where Hawaii estate planning is most consequential.
Hawaii estate tax rate table 2026
Hawaii's estate tax is levied on the taxable estate — roughly, the gross estate minus allowable deductions, beginning at $5,490,000. The brackets are marginal: each rate applies only to the estate value within that bracket, not to the entire estate. The rate schedule below is based on HRS §236E-8.1
| Taxable Estate (Total Value) | Rate on Amount in This Bracket | Maximum Tax in This Bracket |
|---|---|---|
| Below $5,490,000 | 0% (exempt) | $0 |
| $5,490,000 – $6,490,000 | 10% | $100,000 |
| $6,490,000 – $7,490,000 | 11% | $110,000 |
| $7,490,000 – $8,490,000 | 12% | $120,000 |
| $8,490,000 – $9,490,000 | 13% | $130,000 |
| $9,490,000 – $10,490,000 | 14% | $140,000 |
| $10,490,000 – $15,490,000 | 15.7% | $785,000 |
| Over $15,490,000 | 20% | — |
Rates per HRS §236E-8. Brackets are applied to total estate value, not to amounts above the exemption alone — the marginal rate changes at each threshold. Allowable deductions (marital bequest, charitable deduction, debts, mortgages, administration expenses, Hawaii state estate tax credit for taxes paid to another state) reduce the Hawaii taxable estate and may reduce or eliminate the Hawaii estate tax in specific cases. The figures above are before deductions. Consult a Hawaii estate attorney for estate-specific calculations.
Approximate Hawaii estate tax by estate size
The following table shows approximate Hawaii estate tax by total gross estate value, before allowable deductions. Federal estate tax is included for reference using a simplified 40% marginal rate on the amount above $15M (estates below $15M owe zero federal estate tax under OBBBA).3
| Gross Estate Value | Approximate Hawaii Estate Tax | Federal Estate Tax | Combined |
|---|---|---|---|
| $5,000,000 | $0 | $0 | $0 |
| $5,490,000 | $0 | $0 | $0 |
| $6,000,000 | ~$51,000 | $0 | ~$51,000 |
| $7,000,000 | ~$161,000 | $0 | ~$161,000 |
| $8,000,000 | ~$282,000 | $0 | ~$282,000 |
| $10,000,000 | ~$531,000 | $0 | ~$531,000 |
| $12,000,000 | ~$845,000 | $0 | ~$845,000 |
| $15,000,000 | ~$1,308,000 | $0 | ~$1,308,000 |
| $16,000,000 | ~$1,469,000 | ~$400,000 | ~$1,869,000 |
| $20,000,000 | ~$2,269,000 | ~$2,000,000 | ~$4,269,000 |
Calculations assume a single decedent, no allowable deductions beyond the exemption, and no prior lifetime taxable gifts. Hawaii tax computed using the marginal rate brackets above. Federal tax uses simplified 40% rate on the excess above $15M. Actual figures depend on deductions and estate composition. These are illustrative estimates; do not rely on them for tax planning without advice from a Hawaii estate attorney and CPA.1
The Hawaii–federal gap: $5.49M to $15M
The most consequential estate tax planning issue in Hawaii in 2026 is the gap between the Hawaii exemption ($5.49M) and the federal exemption ($15M). Estates in this range owe Hawaii estate tax but nothing to the IRS:
- A $7M estate: ~$161,000 in Hawaii estate tax, $0 federal.
- A $10M estate: ~$531,000 in Hawaii estate tax, $0 federal.
- A $14M estate: ~$1.2M in Hawaii estate tax, $0 federal.
In most of the continental United States, the dominant estate planning concern shifted dramatically when OBBBA raised the federal exemption to $15M — many families who once faced federal estate tax now face none. In Hawaii, that shift provides only partial relief. Estates between $5.49M and $15M still face meaningful state estate tax, even though the federal government ignores them entirely. For Hawaii residents, state-level planning is as important now as ever.
Hawaii has some of the highest residential property values in the United States. Median home prices on Oahu regularly exceed $800,000; on Maui, they frequently exceed $1,000,000 for single-family homes. A Hawaii couple who purchased a Honolulu home in 2005 for $600,000 — now worth $1.4M — combined with two IRAs ($1.5M each), a brokerage account ($400K), and life insurance ($500K) each has an estate approaching $4.3M. If the home has appreciated further or retirement accounts have grown, each spouse's estate may be above $5.49M individually.
Hawaii estate tax is not just for the ultra-wealthy. A retired Hawaii couple with a paid-off home, substantial retirement savings, and modest life insurance can find themselves well into the Hawaii estate tax range without ever thinking of themselves as estate tax concerns. The $5.49M threshold — set in 2022 and not indexed to inflation or rising property values — will catch a growing share of Hawaii estates over time as both real estate and retirement savings appreciate.
Portability — Hawaii's significant advantage
Most state estate taxes do not allow portability. Oregon, Massachusetts, Illinois, Minnesota, Washington, Rhode Island, New York, and Connecticut all deny the surviving spouse the right to inherit the deceased spouse's unused state exemption. That forces married couples in those states to use credit shelter trusts at the first death to preserve the first spouse's exemption.
Hawaii is different. Hawaii allows the surviving spouse to inherit the deceased spouse's unused Hawaii estate tax exemption — the Hawaii Deceased Spousal Unused Exclusion (DSUE) — through a portability election made on Form M-6.2
- The election: Portability is elected on Form M-6, Part 2, filed within 9 months of the first spouse's death (plus any applicable extension). This election is available even if the first spouse's estate is below the $5.49M filing threshold — but the executor must proactively file M-6 to make the election. If no M-6 is filed, the portability election is permanently lost.
- Amount available: The surviving spouse can use the first spouse's unused Hawaii exemption — up to $5,490,000 — at the survivor's own death. If the first spouse's estate used $2M of the $5.49M exemption, the surviving spouse can inherit up to $3.49M of unused DSUE.
- Combined effective exemption with portability: $5.49M (survivor's own) + $5.49M (first spouse's DSUE, assuming full exemption available) = $10.98M combined.
- Portability vs. credit shelter trust: Portability is simpler — no trust required, the surviving spouse controls the inherited assets outright. The tradeoff is that assets pass to the surviving spouse and any growth on those assets is included in the survivor's taxable estate. A credit shelter trust locks assets at the first-death value, so future appreciation escapes both estates. For Hawaii couples with estates likely to grow significantly, a credit shelter trust plus portability may be the optimal combination. For couples where simplicity matters more and growth is modest, portability alone may be sufficient.
- Critical deadline: The 9-month M-6 filing deadline to preserve portability is firm. Missing it permanently forfeits the first spouse's unused DSUE. Many Hawaii families — especially those where the first death's estate is below $5.49M and no M-6 filing would ordinarily be required — overlook this deadline because they don't realize there is any filing obligation for a non-taxable estate. A Hawaii estate attorney should be engaged promptly after a spouse's death to evaluate whether the M-6 portability election is worth making.
Example: A Honolulu couple where the first spouse dies in 2026 with a $4M estate (below the $5.49M threshold, so no Hawaii estate tax owed). The executor files Form M-6, Part 2, making the portability election. The surviving spouse's available Hawaii exemption is now $5.49M (own) + $5.49M (DSUE) = $10.98M. If the surviving spouse later has a $9M estate, the entire estate is below the $10.98M effective Hawaii exemption — no Hawaii estate tax owed at the second death. Without the M-6 portability election, the survivor has only their own $5.49M exemption at death → $9M estate − $5.49M exemption = $3.51M taxable → approximately $358,000 in Hawaii estate tax owed.
Non-residents with Hawaii real estate
Hawaii imposes estate tax on Hawaii-situs real property owned by non-residents, prorated based on the share of the total estate represented by the Hawaii property.1 Non-residents — mainland Americans who own a Maui vacation home, a Kauai investment property, or a Honolulu condominium — should be aware that this property exposure exists at their death.
- Hawaii computes an estate tax on the non-resident's total gross estate using the same $5.49M exemption and rate schedule.
- Hawaii then prorates that tax by the fraction: (Hawaii-situs property value) ÷ (total gross estate value).
- The prorated Hawaii estate tax is owed by the non-resident's estate, in addition to any estate tax owed in the non-resident's home state.
- Hawaii allows a credit for estate taxes paid to another state on the same property, but the mechanics are complex and state-specific.
- Example: A California resident dies with a $20M estate, including a $2M Maui vacation home (10% of the total estate). Hawaii computes estate tax on the $20M estate (above the $5.49M exemption → HI tax on roughly $14.51M ≈ $2.39M), then prorates to 10% → approximately $239,000 in Hawaii estate tax owed by a California estate solely because of the Maui property. Federal estate tax ($20M > $15M) would also apply. A California estate attorney and Hawaii estate attorney should coordinate on a multi-state estate of this type.
Non-resident owners of Hawaii real property should consult with estate counsel in both their home state and Hawaii well in advance of death to evaluate whether the Hawaii estate tax exposure warrants planning strategies — such as holding the Hawaii property in an LLC, trust, or other structure — that may reduce the situs exposure. Note that some such strategies may have their own tax consequences and should only be pursued with professional guidance.
Hawaii and step-up in cost basis
Hawaii estate tax and federal step-up basis are separate systems. Step-up basis under IRC §1014 applies to inherited assets regardless of whether Hawaii estate tax is owed. When a Hawaii resident dies, their heirs receive a new cost basis equal to the date-of-death fair market value on inherited property — reducing or eliminating capital gains tax on subsequent sale. See Step-Up Basis Complete Guide and the Step-Up Basis Calculator.
Hawaii is primarily a common-law property state. For most married Hawaii couples, only the decedent's share of jointly-owned assets receives a step-up in cost basis at the first spouse's death. The surviving spouse's pre-existing interest retains its original cost basis.
Hawaii enacted the Uniform Disposition of Community Property Act (UDCPA, HRS Chapter 510) and related statutes that allow certain Hawaii couples to classify property as community property through a written marital property agreement. Property properly classified as community property under Hawaii law may qualify for the IRC §1014(b)(6) double step-up — both halves of the community property receive a new cost basis at the first spouse's death, rather than just the decedent's half.
This is particularly relevant for Hawaii couples with a significant amount of low-basis appreciated real estate — a common situation given Hawaii's historically high property value growth. If a Honolulu couple owns a home with a $400,000 original cost basis now worth $1.6M, the common-law step-up at the first spouse's death covers only the decedent's 50% (one-half of the $1.2M gain). A community property election, properly structured in advance, could step up the entire $1.2M gain, saving significant capital gains tax if the surviving spouse later sells. However, the community property election has its own legal complexities and is not appropriate for all couples. Consult a Hawaii estate attorney before making this election.
Planning strategies to minimize Hawaii estate tax
1. Make the portability election — always evaluate it at the first death
For any Hawaii couple where the first spouse's estate is below $10.98M (the combined potential exemption with portability), filing Form M-6 to elect portability should be evaluated at every first death. The cost is low (an M-6 return prepared by an estate attorney); the potential savings are substantial. The key rule: if the first spouse's estate is non-taxable (below $5.49M), there is no M-6 filing obligation unless the estate elects portability. If you don't file, portability is gone.
2. Annual exclusion gifting — removes assets with no Hawaii consequence
Hawaii has no gift tax. Gifts within the federal annual exclusion ($19,000 per recipient in 2026, per IRS Rev. Proc. 2025-67) are neither subject to federal gift tax nor to Hawaii estate tax — and permanently reduce the Hawaii gross estate. A couple with four adult children can gift $19,000 × 4 × 2 = $152,000 per year with no federal gift tax return required and no Hawaii consequence. Over 10 years: $1.52M removed from the Hawaii estate tax base.
3. Gifts above the annual exclusion — taxable under federal, but not under Hawaii
For taxable gifts above the annual exclusion — gifts that use federal lifetime exemption — Hawaii still imposes no gift tax. These gifts reduce both the federal estate and the Hawaii gross estate, and any appreciation after the gift date is removed from both. Unlike a state with a gift tax (Connecticut is the only such state), large lifetime gifts in Hawaii carry no additional Hawaii tax burden. This means front-loading large gifts during life can be an effective Hawaii estate planning strategy for families with appreciating assets — the gift removes both the original value and all future appreciation from the Hawaii gross estate.
4. Credit shelter trusts — still relevant even with portability
Portability preserves the dollar amount of the unused exemption — but not any appreciation on those dollars after the first spouse's death. If assets held in the surviving spouse's estate grow significantly between the two deaths, portability may be insufficient to cover the now-larger estate at the second death. A credit shelter trust at the first death shelters both the assets and all future appreciation from the second estate. For Hawaii couples where the combined estate is large and expected to grow, a credit shelter trust (structured to fund up to the first spouse's available Hawaii exemption) can be more tax-efficient than portability alone — though it comes with more complexity and restricts the surviving spouse's direct access to the trust assets.
For couples with combined estates in the $6M–$11M range (likely to remain within the portability-doubled effective exemption of $10.98M), portability alone may be the simpler and sufficient solution. For couples with $15M+ combined estates or significant growth prospects, a credit shelter trust plus portability may be optimal. The right strategy depends on the estate composition, the couple's ages, and the nature of their assets.
5. Irrevocable Life Insurance Trusts (ILITs)
Life insurance owned by the decedent — or over which the decedent had "incidents of ownership" under IRC §2042 — is included in the Hawaii gross estate and subject to Hawaii estate tax. An ILIT owns the policy from inception (or for at least 3 years before death for transferred policies), removing the death benefit from both the federal and Hawaii gross estate. For Hawaii couples with estates approaching or above the $5.49M threshold that include large life insurance policies, an ILIT can be the difference between a taxable and non-taxable Hawaii estate. Given Hawaii's lower exemption relative to federal, this planning tool is often more urgent for Hawaii residents than for those in states with higher exemptions.
6. Charitable strategies
Charitable bequests reduce the Hawaii taxable estate dollar for dollar under IRC §2055, mirroring the federal charitable deduction. Charitable remainder trusts (CRTs), donor-advised funds (DAFs), and direct bequests to charity all reduce the Hawaii estate tax. Given Hawaii's 15.7%–20% top rates, the Hawaii estate tax reduction from charitable giving is in addition to the federal income tax deduction on charitable gifts — the combined tax efficiency can make charitable estate planning highly attractive for Hawaii residents with philanthropic intent. See Charitable Giving from an Inheritance.
7. Evaluate whether Hawaii domicile is still appropriate
Some high-net-worth individuals who spend substantial time in Hawaii consider formally domiciling elsewhere to avoid Hawaii estate tax. Hawaii's 20% top rate (tied for highest in the country) and $5.49M exemption make domicile one of the most consequential estate tax decisions for wealthy Hawaii residents. However, changing domicile is a significant life decision with many factors beyond estate tax, and "domicile" is a legal conclusion based on facts and intent — not just a form filed with the DMV. Anyone considering this option should engage both a Hawaii attorney and a tax advisor in the target state to evaluate the complete implications.
What Hawaii estate tax means if you're an heir
If you're inheriting from a Hawaii resident, here is what the state estate tax means in practical terms:
- If the gross estate is below $5.49M, no Hawaii estate tax is owed. The executor still needs to evaluate whether to file Form M-6 to elect portability if the decedent had a surviving spouse — but no tax is due.
- If the gross estate is above $5.49M, Hawaii estate tax is paid from estate assets before distributions. You as an heir don't personally owe Hawaii estate tax; it comes out of the estate. A $7M estate owes approximately $161,000 in Hawaii estate tax — that's paid before the remaining $6.84M is distributed to heirs.
- Step-up in cost basis applies regardless of Hawaii estate tax. Your inherited assets get a new IRC §1014 cost basis equal to date-of-death fair market value. Hawaii estate tax liability and step-up basis are separate systems. See Step-Up Basis Calculator.
- IRAs are included in the Hawaii gross estate AND you owe income tax on distributions. The IRA counts toward the $5.49M Hawaii estate tax threshold at death, and you separately owe ordinary income tax on every dollar you withdraw over the 10-year rule. The double burden — estate tax plus income tax — is highest on inherited traditional IRAs. See Inherited IRA 10-Year Rule and the IRA Drawdown Optimizer.
- Hawaii estate tax is owed before you receive your share. The Hawaii estate tax is an obligation of the estate, not the individual heir. But if you're a specific beneficiary of a bequest, and the estate doesn't have sufficient liquid assets to pay the Hawaii estate tax bill, assets from the estate — possibly including assets intended for you — may need to be sold to cover the tax. The order in which assets are sold to pay estate debts and taxes is governed by Hawaii law and the terms of the decedent's estate plan.
- Watch the 9-month M-6 deadline if a surviving spouse wants portability. As an heir (especially if you're serving as the executor of a Hawaii estate with a surviving spouse), the portability election on Form M-6 must be made within 9 months of the decedent's death. Even if no Hawaii estate tax is owed, failing to file M-6 to elect portability can cost the surviving spouse their most valuable Hawaii estate planning option. Engage a Hawaii estate attorney promptly.
How Hawaii compares to other states with estate taxes
| State | 2026 Exemption | Rate / Structure | Portability | Gift Tax | Filing Deadline | Notable Feature |
|---|---|---|---|---|---|---|
| Oregon | $1,000,000 | 10–16% graduated | No | No | 12 months | Lowest exemption in country |
| Massachusetts | $2,000,000 | 7.2–16% graduated | No | No | 9 months | No cliff; no gift clawback |
| Washington | $3,000,000 | 10–20% graduated | No | No | 9 months | Community property double step-up; farm deduction |
| Minnesota | $3,000,000 | 13–16% graduated | No | No | 9 months | Farm/business exclusion (+$2M) |
| Illinois | $4,000,000 | 0.8–16% graduated | No | No | 9 months | Unchanged since 2010; $11M federal gap |
| Maryland | $5,000,000 | 0.8–16% graduated | No | No | 9 months | Only state with both estate AND inheritance tax |
| Hawaii | $5,490,000 | 10–20% graduated | Yes — one of few states | No | 9 months | Portability available; tied for highest top rate (20%) |
| New York | $7,350,000 | 3.06–16% graduated | No | No | 9 months | Cliff; 3-year gift clawback |
| Rhode Island | $1,838,056 | 0.8–16% graduated | No | No | 6 months | Universal filing; statutory lien on RI real estate |
| Connecticut | $15,000,000 | 12% flat | No | Yes — only state with gift tax | 6 months | Exemption matches federal; non-taxable estates file CT-706 NT with Probate Court |
| Federal (all states) | $15,000,000 | Up to 40% (graduated) | Yes | Yes — unified | 9 months | Permanent (OBBBA, July 2025); inflation-indexed |
Frequently asked questions
My parent died in Hawaii with a $4M estate. Is there Hawaii estate tax?
No. The Hawaii estate tax exemption is $5,490,000 per person in 2026. A $4M estate is fully exempt from Hawaii estate tax. If your parent had a surviving spouse, the executor should evaluate whether to file Form M-6 to elect portability and preserve the unused $5.49M exemption for the surviving spouse — but no Hawaii estate tax is owed and no mandatory M-6 filing exists for a non-taxable estate.
My parent died in Hawaii with a $7M estate. How much Hawaii estate tax is owed?
Approximately $161,000, before allowable deductions. The calculation: 10% on the first $1M above the exemption ($5.49M–$6.49M) = $100,000; 11% on the next $510,000 ($6.49M–$7M) = $56,100. Total ≈ $156,100. Allowable deductions (charitable bequests, outstanding debts, mortgages, administration expenses) may reduce this further. Federal estate tax: $0 (below $15M federal threshold). A Hawaii estate attorney should prepare the Form M-6 for the actual calculation.
Does Hawaii allow spousal portability of the estate tax exemption?
Yes. Hawaii is one of a small number of states that allows the surviving spouse to use the deceased spouse's unused Hawaii estate tax exemption. The election is made on Form M-6, Part 2, filed within 9 months of the first spouse's death. Even if the first spouse's estate is below $5.49M and no Hawaii estate tax is owed, the executor should file M-6 to preserve the portability election. Failure to file within 9 months permanently forfeits the portability benefit.
I live in California but own a Maui vacation home. Do I owe Hawaii estate tax?
Potentially. Hawaii imposes estate tax on Hawaii-situs real property owned by non-residents, prorated by the ratio of the Hawaii property value to the total gross estate. If your California estate exceeds $5.49M (which triggers Hawaii estate tax on a gross basis), Hawaii will apply a prorated portion of the estate tax attributable to the Maui property. The exact amount depends on the size of the total estate, the value of the Maui property, and any credit for California estate tax on the same property (California currently has no estate tax, so no credit would apply). A Hawaii estate attorney should be consulted to evaluate the exposure.
Does Hawaii have an inheritance tax?
No. Hawaii has no inheritance tax based on the beneficiary's relationship to the decedent. The estate pays the Hawaii estate tax before distributions; individual heirs do not pay Hawaii state tax on what they receive. This differs from states like New Jersey, Pennsylvania, Maryland, Nebraska, and Kentucky (for non-family beneficiaries). See Inheritance Tax by State.
What if my parent's estate is below $5.49M but growing — should we worry about Hawaii estate tax?
Yes, especially if real estate is a large part of the estate. Hawaii home values have historically appreciated faster than the national average, and the $5.49M Hawaii estate tax threshold is fixed — it does not adjust automatically for inflation or rising property values. A $4M estate today that includes a $1.2M Honolulu home and $2M in retirement accounts could exceed the $5.49M threshold within 5–10 years with normal appreciation and continued retirement account contributions. Ongoing estate planning (annual gifting, portability election at the first death, trust planning) should account for projected growth — not just today's snapshot.
Sources
- Hawaii Revised Statutes Chapter 236E — Estate and Generation-Skipping Transfer Tax. HRS §236E-6 sets the Hawaii estate tax filing threshold at $5,490,000 for estates of decedents dying after January 25, 2022. HRS §236E-8 establishes the marginal rate schedule (10% to 20%) applied to the taxable estate above the exemption. Hawaii's exemption is a fixed statutory figure — it is NOT indexed to the federal basic exclusion amount. Rate brackets: $5.49M–$6.49M at 10%; $6.49M–$7.49M at 11%; $7.49M–$8.49M at 12%; $8.49M–$9.49M at 13%; $9.49M–$10.49M at 14%; $10.49M–$15.49M at 15.7%; over $15.49M at 20%. Hawaii Legislature — HRS Chapter 236E. SmartAsset — Hawaii Estate Tax. Nolo — Hawaii Estate Tax. Tax Foundation — State Estate and Inheritance Taxes (2026).
- Hawaii Department of Taxation — Form M-6 (Hawaii Estate Tax Return) and Form M-68 (Extension). Filing deadline: 9 months from date of death (HRS §236E-9). Extension: Form M-68, up to 6 additional months; does not extend time to pay. Portability: HRS §236E-2 and Form M-6 Part 2 allow the surviving spouse to elect portability of the Hawaii Deceased Spousal Unused Exclusion (DSUE); election must be made on timely-filed M-6. Non-resident decedents with Hawaii-situs real property: Hawaii imposes estate tax prorated by the fraction of Hawaii property to total gross estate. Credit available for estate taxes paid to another state. Hawaii Department of Taxation — Form M-6 Instructions. Nolo — Hawaii Estate Tax Filing Requirements.
- Federal estate tax exemption: $15,000,000 per person, permanently raised by the One Big Beautiful Bill Act (OBBBA, July 2025), IRC §2010(c)(3). Federal estate tax rate on excess above $15M: up to 40% (graduated; top marginal rate applies at high amounts). Federal exemption is inflation-indexed. Hawaii's $5.49M exemption is not indexed — the $9.51M Hawaii-federal gap will widen as federal exemption adjusts for inflation while Hawaii's stays fixed unless the Hawaii Legislature acts. Annual gift exclusion: $19,000 per recipient, 2026, per IRS Rev. Proc. 2025-67. IRC §1014 step-up basis: applies at death regardless of state estate tax liability. IRC §1014(b)(6): both halves of community property receive step-up at first spouse's death; Hawaii's elective community property system (HRS Chapter 510) may allow qualification for double step-up with proper planning. Tax Foundation — State Estate and Inheritance Taxes. SmartAsset — Hawaii Estate Tax Calculator and Guide.
- Hawaii Community Foundation and Bank of Hawaii estate planning resources. Hawaii real estate and retirement wealth concentrations that push families toward the $5.49M threshold. Hawaii Uniform Disposition of Community Property Act (UDCPA, HRS Chapter 510): allows certain Hawaii residents to treat property acquired while domiciled in a community property state — or through a marital property agreement — as community property, potentially qualifying for the federal IRC §1014(b)(6) double step-up. Non-resident estate tax on Hawaii situs property: prorated computation under HRS §236E per confirmed practice by Hawaii estate attorneys. Values verified against Hawaii Department of Taxation, Nolo, SmartAsset, and Tax Foundation (2026). Last reviewed June 2026.
Hawaii estate tax exemption ($5,490,000), rate table (10%–20% per HRS §236E-8), portability provisions (Form M-6, Part 2), 9-month filing deadline (HRS §236E-9), and no Hawaii gift tax or inheritance tax verified against Hawaii Department of Taxation (files.hawaii.gov), Hawaii Revised Statutes Chapter 236E, Nolo, SmartAsset, and Tax Foundation (2026). Federal exemption per OBBBA (July 2025, IRC §2010(c)(3)). Annual gift exclusion $19,000 per recipient per IRS Rev. Proc. 2025-67. Approximate tax calculations are illustrative and before allowable deductions. Last reviewed June 2026.
Get matched with an advisor who understands Hawaii estate planning
Hawaii's estate tax is one of the most consequential in the country — a $5.49M exemption, rates up to 20%, and a gap of $9.51M below the federal threshold where Hawaii tax applies but the IRS doesn't touch you. The good news is that Hawaii allows spousal portability, meaning a well-timed Form M-6 election can double the effective exemption to $10.98M for married couples — but the 9-month deadline is unforgiving. A fee-only financial advisor specializing in inheritance and estate planning can model your Hawaii estate tax exposure, evaluate whether portability or a credit shelter trust (or both) fits your situation, coordinate an annual gifting strategy to reduce the Hawaii estate tax base, and help you understand what your Hawaii real estate means for your heirs. The right specialist has handled Hawaii estates before and knows the rules that make Hawaii uniquely different from other states.