State tax debt in Hawaii is collected by Hawaii Department of Taxation, not the IRS. A $50 fee applies. Plans over one year may get a state tax lien. A plan also extends the time the state has to collect.
Key facts for Hawaii
- State income tax
- 1.4% to 11% for tax years after 2024. Source
- Payment plan
- A $50 fee applies. Plans over one year may get a state tax lien. A plan also extends the time the state has to collect. Source
- Offer program
- Yes. Use Form CM-1 with a financial statement (CM-2). Source
- Collection tools
- If a plan defaults, Hawaii may file a lien, levy, garnish wages, or send the case to the Attorney General or a private collector. Source
Two debts, two sets of rules
- The IRS collects federal taxes, with its own letters and plans.
- Hawaii Department of Taxation collects Hawaii taxes, with its own rules.
- A plan with the IRS does not stop the state from collecting, and the other way around.
Common questions in Hawaii
Who collects state taxes in Hawaii?
The Hawaii Department of Taxation. It is separate from the IRS. A plan with one does not stop the other from collecting.
Can I get a payment plan for Hawaii taxes?
A $50 fee applies. Plans over one year may get a state tax lien. A plan also extends the time the state has to collect.
Does Hawaii take offers in compromise?
Yes. Use Form CM-1 with a financial statement (CM-2).
Can TaxTruce help with Hawaii tax debt?
Yes. TaxTruce is a free service that connects you with tax resolution firms that work in Hawaii. Answer a few questions, confirm your phone with a text code, and a firm reviews your situation and calls you back. We are not the IRS or a state agency.
Results depend on your situation. Not every case qualifies.
Sources
Facts on this page come from Hawaii Department of Taxation and are linked. Rules change. Check with Hawaii Department of Taxation or a licensed tax pro before you act. We are not affiliated with Hawaii Department of Taxation.
