Calculates Hawaii state withholding, federal income tax, and FICA using the annualization method — the same method used by Hawaii payroll professionals.
Only matters for high earners: Social Security stops once 2026 wages reach $184,500, and the 0.9% Additional Medicare tax starts on wages over $200,000.
e.g. $2,200 per qualifying child under 17 • $500 per other dependent.
Interest, dividends, side income. Increases withholding.
Itemized deductions minus your standard deduction. Decreases withholding.
Additional federal tax per paycheck (W-4 Step 4c).
Additional state income tax per pay period.
Federal withholding uses the official 2026 IRS Publication 15-T Percentage Method tables for automated payroll systems (Worksheet 1A). Supports both 2019-and-earlier W-4 (allowance-based) and 2020+ W-4 (Steps 2–4). Federal withholding allowance: $4,300. Social Security: 6.2% up to the $184,500 wage base. Medicare: 1.45%, plus 0.9% Additional Medicare on wages over $200,000 for the year.
Hawaii withholding uses the annualized method in Hawaii Booklet A (Rev. 2025), effective for withholding on or after January 1, 2026. Hawaii allowance value: $1,144 each, plus the $4,350 extra lump-sum withholding allowance. Results may differ by a few cents from the Booklet A wage bracket tables. Hawaii TDI and pre-tax deductions are not included. Always verify results against your actual Booklet A and employee HW-4 before processing payroll. For exact calculations, contact Pacific Data Services at (808) 521-1813.
Pacific Data Services has processed Hawaii payroll since 1969. We handle all the calculations, filings, and deposits — so you don’t have to.
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