RaifH
Expert Alumni

Deductions & credits

No, you do not need to fill this out. You are only allowed a tax deduction for the greater of income tax or sales tax paid in 2021 up to a maximum of $10,000 for total taxes paid. The state income tax paid will automatically import for any taxes withheld during the year. If you feel this is greater than the sales tax you paid during the year, which it often is, then you will not gain any additional deduction by filling out the sales tax section. 

 

If you do want to fill it out to see which provides the greater benefit, the sales tax you pay does depend on what part of Hawaii you live in but is between 4 and 4.5%.