What a taxable index-fund account is actually worth after expense-ratio drag and after Hawaii takes its share of the gain — which, in most states, is not at the federal preferential rate.
Hawaii is one of the minority of states that charges long-term gains at a lower rate than ordinary income. HAWAII IS A GENUINE EXCEPTION TO THE 'STATES TAX GAINS AS ORDINARY INCOME' RULE, and it is a RATE CAP rather than an exclusion. Under Hawaii Revised Statutes section 235-51(f), an individual's tax may not exceed the ordinary tax computed on income EXCLUDING net capital gain, plus 7.25% of the net capital gain. It applies to individuals, estates and trusts for taxable years beginning after December 31, 1986. Because Hawaii's ordinary top rate is 11%, this is a real benefit for high-income filers and no benefit at all below the crossover point - a taxpayer whose marginal rate is under 7.25% pays the ordinary rate, so the alternative computation only ever helps. It is claimed through the Tax on Capital Gains Worksheet in the Form N-11 instructions, with a dedicated oval on Form N-11. A STALE SCREEN WORTH KNOWING ABOUT: the N-11 instructions still tell filers not to bother below $48,000 ($24,000 single or married filing separately, $36,000 head of household). Under the Act 46 brackets those figures are out of date - a single filer at $24,000 is still in the 6.80% band, below 7.25% - so the printed threshold is conservative rather than wrong, but a calculator should compute the actual crossover rather than trust it.
What your state actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, not a yes/no list.
2026 limits, employer match, the 60-63 super catch-up, and whether the Roth catch-up mandate applies to you.
When your RMDs start under SECURE 2.0, how much this year's is, and what missing it costs.
What retiring actually costs across all fifty states in 2026 — the three lines that decide it, why ranking states by income tax gets the answer wrong, the federal rules that follow you everywhere, and the decisions that are worth real money before you move.
Hawaii charges $2,832 in state income tax on a typical retirement income, $2,019 in property tax on its median home and $900 in insurance — $5,751 together, which is 8th of 50.
What moving actually saves, on your own income mix rather than a headline rate — and how to establish domicile so the state you left cannot follow you.
Which account to draw first, priced. The three cliffs a withdrawal can cross without warning, the conversion window almost nobody uses, and why the order is the last big decision you can still change.