Side-by-side tax comparison between Hawaii (11% top rate, graduated) and Minnesota (9.85% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Hawaii uses a graduated income tax (1.4-11%) while Minnesota has a graduated system (5.35-9.85%). On a $100K salary, Hawaii takes $7,150 in state and local taxes compared to Minnesota’s $6,402 \u2014 a difference of $748.
Both states use graduated brackets, but Hawaii’s top rate of 11% is higher than Minnesota’s 9.85%.
Minnesota wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Hawaii | Minnesota | Difference | Winner |
|---|---|---|---|---|
| $40K | $31,460 | $31,759 | +$299 | Minnesota |
| $50K | $38,780 | $39,154 | +$374 | Minnesota |
| $60K | $46,100 | $46,549 | +$449 | Minnesota |
| $75K | $56,175 | $56,736 | +$561 | Minnesota |
| $100K | $71,975 | $72,723 | +$748 | Minnesota |
| $120K | $84,615 | $85,512 | +$897 | Minnesota |
| $150K | $103,026 | $104,147 | +$1,121 | Minnesota |
| $200K | $134,587 | $136,082 | +$1,495 | Minnesota |
| $250K | $165,389 | $167,258 | +$1,869 | Minnesota |
| $300K | $193,879 | $196,121 | +$2,243 | Minnesota |
Take-home pay only tells part of the story. Hawaii has a cost of living index of 192 while Minnesota is at 99 (national average = 100).
This is a substantial difference. After adjusting for cost of living, $100K in Hawaii has purchasing power of $37,487 compared to $73,457 in Minnesota. Minnesota wins on both raw take-home and cost-adjusted purchasing power, making it the clear winner for a $100K earner.
For a single earner at $100K filing jointly, take-home becomes $77,560 in Hawaii and $78,308 in Minnesota \u2014 a difference of $748. The gap remains similar regardless of filing status.
On paper, moving from Hawaii to Minnesota would save $748/year on a $100K salary, or $3,738 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $748/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.