TaskRabbit Taxes in Hawaii - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Hawaii

Trading time for treasure as a TaskRabbit amidst the Aloha State’s beauty comes with the responsibility of understanding tax obligations. Whether you're assembling furniture in Honolulu or running errands in Hilo, proper tax planning is crucial.

As a TaskRabbit, you are considered an independent contractor by the IRS. This means all income earned through the platform is considered self-employment income and must be reported on Schedule C (Profit or Loss From Business) when filing your federal income tax return. Furthermore, independent contractors are responsible for paying both the employer and employee portions of Social Security and Medicare taxes – collectively known as self-employment tax – on net earnings exceeding $400.

How Hawaii Handles Gig Worker Taxes

As a resident of Hawaii, you are required to file a state income tax return, even if your federal tax liability is zero. Hawaii operates on a graduated income tax system, meaning the tax rate increases as your income increases. This means the amount of tax you owe depends on your total taxable income and filing status. The primary form for self-employed individuals to report income and calculate tax liability is Form N-11, Hawaii General Excise/Income Tax Return. It’s important to note that Hawaii’s tax brackets and rates are subject to change annually, so referencing the latest information from the Hawaii Department of Taxation is essential.

Hawaii also has a General Excise Tax (GET) which is a tax on gross income. While TaskRabbit typically handles the GET collection and remittance on your behalf for the services you provide through the platform, it’s crucial to understand this tax exists. If you perform any TaskRabbit-related activities outside of the platform’s framework, you may be responsible for collecting and remitting GET yourself.

The Hawaii Department of Taxation offers resources and guidance specifically for self-employed individuals. Staying informed about these resources can help ensure accurate and timely tax filing. You can find more information at Hawaii Department of Taxation.

Top Tax Deductions for Hawaii Drivers

• Standard Mileage: The #1 deduction for most TaskRabbits. The 2025 rate is 70 cents per mile. Given the island geography of Hawaii and potential for significant driving distances between tasks, this deduction can be substantial.
• Tolls & Parking: While Hawaii doesn’t have traditional toll roads, parking fees, especially in urban areas like Waikiki, can add up. These are deductible business expenses.
• Phone & Data Plan: If you use your phone for TaskRabbit-related communication, scheduling, or navigation, you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Consider expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, or insulated bags for delivering groceries or food items.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas or repairs in the same year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax covers both Social Security and Medicare, and it’s important to remember that TaskRabbit, or any other gig platform, does not withhold these taxes from your earnings. You are solely responsible for calculating and paying this tax when you file your federal income tax return. You can potentially reduce your self-employment tax liability by deducting one-half of your self-employment tax from your adjusted gross income.