Live in Hawaii, Work in Georgia: Which State Taxes Your Paycheck?
Answer
Expect withholding in Georgia and a return in both. Hawaii and Georgia hold no reciprocal agreement, so the overlap is resolved after the fact: Georgia taxes the Georgia-source wages, and your Hawaii resident return claims a credit for that tax against the Hawaii liability on the same income.
Last verified
Two states can lawfully tax the same wages: Georgia because the work happened there, Hawaii because you live there. Nothing prevents the overlap in advance — it is unwound afterwards, on the Hawaii return, through the credit for taxes paid to another state.
A Hawaii resident taxed by another state on the same income claims the credit for taxes paid to other states on Schedule CR. The credit is capped at the Hawaii 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 · GeorgiaForm 500 with Schedule 3
File the Georgia nonresident return FIRST — you need the Georgia tax figure before you can complete Hawaii.
- 2Resident return · HawaiiSchedule CR
File a Hawaii resident return reporting all income, then claim the credit for tax paid to Georgia. The credit is capped at what Hawaii would have charged on that same income, so if Georgia taxes it at a higher rate the difference is not refunded.
The two states, side by side
| Hawaii | Georgia | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — flat |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form N-15 | Form 500 with Schedule 3 |
| Credit for other-state tax | Schedule CR | Form 500 Schedule 2 |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | Hawaii Department of Taxation | Georgia Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Georgia and working in Hawaii 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: Hawaii → GeorgiaHome state only
- 1099 contractor: Hawaii → GeorgiaHome state, plus the client state if you work there
- Moved mid-year: Hawaii → GeorgiaTwo part-year returns
Other Hawaii pairs
Questions people actually ask
I live in Hawaii and work in Georgia. Which state takes the tax out of my paycheck?
Expect withholding in Georgia and a return in both. Hawaii and Georgia hold no reciprocal agreement, so the overlap is resolved after the fact: Georgia taxes the Georgia-source wages, and your Hawaii resident return claims a credit for that tax against the Hawaii liability on the same income.
Which state should my employer be withholding for?
Georgia. The wages are sourced to Georgia, so Georgia withholding is correct and there is no Hawaii 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. Hawaii gives residents a credit for tax paid to Georgia on the same income, claimed on Schedule CR. The credit is capped at the Hawaii tax on that income, so if Georgia taxes it more heavily the excess is not refunded by either state.
How current is this?
The Hawaii and Georgia rules on this page were last checked against Hawaii Department of Taxation and Georgia Department of Revenue 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.
- Hawaii Department of Taxation — individual income taxaccessed 2026-08-07
- Georgia Department of Revenue — individual income taxaccessed 2026-08-07