Graphic Designer Taxes in Hawaii - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Graphic Designer in Hawaii

From designing vibrant logos inspired by island flora to crafting marketing materials for local businesses, being a graphic designer in Hawaii offers unique creative opportunities – and unique tax considerations.

As a self-employed graphic designer, the federal government requires reporting all business income and expenses on Schedule C (Profit or Loss From Business) with Form 1040. Crucially, income exceeding $400 necessitates the payment of self-employment taxes, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is paramount for a smooth tax filing process.

How Hawaii Handles Gig Worker Taxes

As a resident of Hawaii, filing a state income tax return is mandatory, even if federal taxes aren't owed. Hawaii operates under a graduated income tax system, meaning the tax rate increases as income rises. For the 2025 tax year, self-employed individuals will primarily utilize Form N-110, the Hawaii Individual Income Tax Return, to report their earnings. Hawaii’s tax rates for 2025 (subject to change, always verify with the official source) range from 1.4% to 11%, depending on your taxable income and filing status. Unlike some states, Hawaii does not offer a separate tax form specifically for self-employment income; it’s all reported on the standard N-110.

Hawaii also has a General Excise Tax (GET) which may apply to your graphic design services. The GET is a tax on gross income, and the rate varies depending on the type of business activity. Most services, including graphic design, are subject to the standard GET rate of 4%. If your gross income exceeds $100,000, you may also be subject to the Native Hawaiian Rehabilitation Fund tax. It’s essential to understand your GET obligations and file accordingly.

For the most up-to-date information and forms, please visit the Hawaii Department of Taxation website: https://tax.hawaii.gov/

Key Tax Deductions for Home-Based Graphic Designers

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for your graphic design business. “Exclusive use” means that portion of your home is only used for work – no guest rooms doubling as design studios. “Regular use” implies consistent and frequent use for business purposes. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of your mortgage/rent, utilities, etc., based on the square footage used for business).
• Hardware & Software: The cost of essential tools like computers, graphic tablets, cameras used for product photography, and software subscriptions (Adobe Creative Cloud, font licenses, website hosting) are all deductible business expenses. For larger purchases (over a certain threshold, currently $2,500), depreciation may be required.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to business use. Keep detailed records of how you use these services to justify your deduction.

Note on Mileage: As a home-based graphic designer, mileage deductions are less common. However, you can claim mileage for trips made specifically for client meetings, purchasing supplies, or other work-related errands. Keep a detailed mileage log.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is comprised of two components: 12.4% for Social Security and 2.9% for Medicare. This tax effectively covers both the employer and employee portions of these taxes, as you are both the employer and employee when self-employed. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).