Live in Georgia, Work in Hawaii: Which State Taxes Your Paycheck?
Answer
Expect withholding in Hawaii and a return in both. Georgia and Hawaii hold no reciprocal agreement, so the overlap is resolved after the fact: Hawaii taxes the Hawaii-source wages, and your Georgia resident return claims a credit for that tax against the Georgia liability on the same income.
Last verified
Two states can lawfully tax the same wages: Hawaii because the work happened there, Georgia because you live there. Nothing prevents the overlap in advance — it is unwound afterwards, on the Georgia return, through the credit for taxes paid to another state.
A Georgia resident taxed by another state on the same income claims the credit for taxes paid to other states on Form 500 Schedule 2. The credit is capped at the Georgia tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.
What you file
- 1Nonresident return · HawaiiForm N-15
File the Hawaii nonresident return FIRST — you need the Hawaii tax figure before you can complete Georgia.
- 2Resident return · GeorgiaForm 500 Schedule 2
File a Georgia resident return reporting all income, then claim the credit for tax paid to Hawaii. The credit is capped at what Georgia would have charged on that same income, so if Hawaii taxes it at a higher rate the difference is not refunded.
The two states, side by side
| Georgia | Hawaii | |
|---|---|---|
| Taxes wages | Yes — flat | Yes — graduated |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form 500 with Schedule 3 | Form N-15 |
| Credit for other-state tax | Form 500 Schedule 2 | Schedule CR |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | Georgia Department 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 Georgia gives:Both states — credit offsets the double tax.
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.
- Remote worker: Georgia → HawaiiHome state only
- 1099 contractor: Georgia → HawaiiHome state, plus the client state if you work there
- Moved mid-year: Georgia → HawaiiTwo part-year returns
Other Georgia pairs
Questions people actually ask
I live in Georgia and work in Hawaii. Which state takes the tax out of my paycheck?
Expect withholding in Hawaii and a return in both. Georgia and Hawaii hold no reciprocal agreement, so the overlap is resolved after the fact: Hawaii taxes the Hawaii-source wages, and your Georgia resident return claims a credit for that tax against the Georgia liability on the same income.
Which state should my employer be withholding for?
Hawaii. The wages are sourced to Hawaii, so Hawaii withholding is correct and there is no Georgia withholding to set up.
Will I end up paying tax twice on the same income?
Not twice over, but you will pay the higher of the two rates. Georgia gives residents a credit for tax paid to Hawaii on the same income, claimed on Form 500 Schedule 2. The credit is capped at the Georgia tax on that income, so if Hawaii taxes it more heavily the excess is not refunded by either state.
How current is this?
The Georgia and Hawaii rules on this page were last checked against Georgia Department 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.
- Georgia Department of Revenue — individual income taxaccessed 2026-08-07
- Hawaii Department of Taxation — individual income taxaccessed 2026-08-07