Honolulu (courtesy of Watchdog.org)
Honolulu (courtesy of Watchdog.org)
Honolulu (courtesy of Watchdog.org)

The news site Kiplinger has released its list of top 10 least tax friendly places in the United States.

Hawaii came in at number 5, just behind California, Connecticut, New Jersey and New York.

Hawaii was ranked poorly, according to the report, because the state income tax is among the highest in the nation at 11 percent for the state’s highest earners. The 11 percent tax rate is on individuals who make at least $300,000 a year and married couples who make $400,000 a year.

Hawaii’s General Excise Tax is 4 percent, but that is charged at every level of transaction, making it equivalent, according to the Tax Foundation of Hawaii, to about a 12 percent sales tax.

Motor vehicles are subject to the tax even if they are purchased on the mainland.

Hawaii also received poor marks for the vehicle weight tax charged by both the state and county.

Hawaii has the highest gas prices in the nation in part because the state charges above-average fuel taxes and fees.

Depending on the county, gas taxes and fees are about 50 cents per gallon.