Live in Delaware, Work Remotely for a Hawaii Employer: Who Taxes You?
Answer
Only Delaware taxes you. Hawaii levies no personal income tax on wages, so nothing is withheld there and you file no Hawaii return. Delaware taxes its residents on all income wherever earned, which means your Hawaii earnings go on a Delaware resident return in full.
Last verified
Crossing into a state with no income tax does not lower your tax bill, because your home state is not taxing you on where you work — it is taxing you on where you live. Delaware reaches all of a resident's income, and Hawaii adds nothing on top.
What you file
- 1Resident return · Delaware
File a Delaware resident return reporting all of your income.
The two states, side by side
| Delaware | Hawaii | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | None | None |
| Convenience rule | Yes — general rule | No |
| Nonresident return | Form PIT-NON | Form N-15 |
| Credit for other-state tax | Schedule I (Form PIT-RES) | Schedule CR |
| Nonresident safe harbour | None published | None published |
| Local income tax | Yes | No |
| Revenue department | Delaware Division of Revenue | Hawaii Department of Taxation |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Hawaii and working in Delaware gives:Convenience-of-the-employer rule — both states tax you.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: Delaware → HawaiiBoth states — credit offsets the double tax
- 1099 contractor: Delaware → HawaiiHome state, plus the client state if you work there
- Moved mid-year: Delaware → HawaiiTwo part-year returns
Other Delaware pairs
Questions people actually ask
I live in Delaware and work remotely for a Hawaii employer. Which state do I pay?
Only Delaware taxes you. Hawaii levies no personal income tax on wages, so nothing is withheld there and you file no Hawaii return. Delaware taxes its residents on all income wherever earned, which means your Hawaii earnings go on a Delaware resident return in full.
Which state should my employer be withholding for?
Delaware. Your employer should withhold Delaware tax rather than Hawaii tax on these wages. If a Hawaii line is showing on your pay stub, raise it with payroll now rather than at filing time.
Does my Hawaii employer's location alone create a Hawaii tax obligation?
No. Hawaii sources wages to the place where the work is physically performed, and it does not apply a convenience-of-the-employer rule that would override that. Days you actually spend working inside Hawaii are a different matter — those are Hawaii-source income and can require a nonresident return.
How current is this?
The Delaware and Hawaii rules on this page were last checked against Delaware Division of Revenue and Hawaii Department of Taxation on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Delaware Division of Revenue — individual income taxaccessed 2026-08-07
- Hawaii Department of Taxation — individual income taxaccessed 2026-08-07