Hawaii minimum wage in 2026 (and 2027)

Hawaii's step schedule

Hawaii does not index its rate to inflation. The legislature sets fixed steps, and DLIR lists them:

• $10.10 from January 1, 2018
• $12.00 from October 1, 2022
• $14.00 from January 1, 2024
• $16.00 from January 1, 2026
• $18.00 from January 1, 2028

So anyone searching for a 2027 Hawaii rate gets the same answer as for 2026: $16.00. Our local minimum wage research lists no county rate in Hawaii.

Who is covered, and the narrow tip credit

Hawaii's law reaches further than some states. Domestic service workers are covered by the state minimum wage and overtime rules, and the DOL state summary notes that Hawaii exempts employees with a guaranteed monthly pay of $4,000 or more from the state minimum wage and overtime law. Overtime is 1.5 times the regular rate after 40 hours a week.

The tip credit is small and conditional. An employer may pay a tipped worker $14.75 an hour, a $1.25 credit, but only if the worker's wages plus tips come to at least $7.00 more than the minimum wage, per the DOL tipped wage table. In practice that means a server must average at least $23.00 an hour combined before you can use the credit.

What $16.00 an hour pays

• Week: 40 x $16.00 = $640.00
• Year: 2,080 x $16.00 = $33,280.00
• Month: $33,280.00 / 12 = $2,773.33

At the 2028 rate of $18.00, a full-time year comes to 2,080 x $18.00 = $37,440.00, $4,160.00 more per worker than today. Hawaii now matches Rhode Island's $16.00 and sits above Alaska's $14.00.

Taxes and mandates on top of Hawaii wages

Payroll taxes for a new employer on one $33,280.00 worker:

• FICA, 7.65%: $2,545.92
• FUTA, 0.6% on $7,000: $42.00
• Hawaii unemployment, new employer 2.40% (wages are under the $64,500 base): $798.72
• Employment and Training assessment, 0.01%: $3.33

That is $3,389.97 before two Hawaii-specific costs:

• Temporary Disability Insurance (TDI): you must carry a TDI plan. You may withhold up to half the premium from the employee, capped at 0.5% of weekly wages ($7.50 a week maximum in 2026, on a weekly wage base of $1,500.21). The rest of the premium, set by your insurer, is yours.
• Prepaid Health Care: employers must provide health coverage to eligible employees and may deduct no more than 1.5% of the employee's wages toward it. The rest of the premium is an employer cost.

Get a health plan quote before you set pay for a first hire, because the premium is not a payroll tax and does not appear in the figures above. See Hawaii payroll taxes and small business health insurance options for the details.

Payroll and benefits in Hawaii

Because Hawaii mixes payroll tax with mandatory insurance, one option is a PEO or a payroll provider that also brokers health plans. Gusto's Simple plan costs $49 a month plus $6 per person (checked October 16, 2026). Compare payroll options in the payroll software rankings and see what a PEO costs per employee if you want benefits bundled.