HRS § 236E-8 - Tax imposed; credit for tax paid other state
AI-assisted research summary: Certain estates must file a Hawaii state tax return, and the section sets Hawaii estate tax rates and a credit for qualifying tax paid to another state.
(a) A state tax return shall be filed in the case of every decedent whose estate is required by the laws of the United States to file a federal estate tax return. This section shall apply to a decedent who, at the time of death was: (1) A resident of the State; or (2) A nonresident of the State whose gross estate includes any real property situated in the State or tangible personal property having a situs in the State. (b) With respect to the estates of decedents dying after January 25, 2012, the tax based on the Hawaii net taxable estate shall be as provided in the following schedule: If the Hawaii net taxable estate is: The tax shall be: $1,000,000 or less 10.0% of the Hawaii net taxable estate Over $1,000,000 but $100,000 plus 11.0% of the not over $2,000,000 amount by which the Hawaii net taxable estate exceeds $1,000,000 Over $2,000,000 but $210,000 plus 12% of the not over $3,000,000 amount by which the Hawaii net taxable estate exceeds $2,000,000 Over $3,000,000 but $330,000 plus 13% of the not over $4,000,000 amount by which the Hawaii net taxable estate exceeds $3,000,000 Over $4,000,000 but $460,000 plus 14% of the not over $5,000,000 amount by which the Hawaii net taxable estate exceeds $4,000,000 Over $5,000,000 $600,000 plus 15.7% of the amount by which the Hawaii net taxable estate exceeds $5,000,000. (c) If any property of a resident is subject to a death tax imposed by another state and if the tax imposed by the other state is not qualified by a reciprocal provision allowing the property to be taxed in the state of the decedent's domicile, the amount of the tax due under this section shall be credited with the lesser of: (1) The amount of the death tax actually paid to the other state; or (2) An amount computed by multiplying the Hawaii estate tax by a fraction, the numerator of which is the value of the property subject to the death tax imposed by the other state, and the denominator of which is the total value of the decedent's gross estate. (d) Except as otherwise expressly provided, for purposes of this chapter, the gross value of transferred property shall be its value as finally determined for purposes of the federal transfer tax. [L 2012, c 220, pt of §1]