Are temporary disability payments subject to state income tax in Hawaii?

Temporary disability payments in Hawaii are not subject to state income tax. This means that individuals receiving these payments can do so without the burden of state taxes on that income, allowing them to retain more of the financial support provided during their period of disability. This policy is in place to provide financial relief to workers who are unable to earn their usual income due to work-related injuries or medical conditions.

It's important to note that while these payments are exempt from state income tax, they may still have federal tax implications, depending on an individual's overall income and tax situation. Thus, while residents can benefit from the absence of state taxes on temporary disability, they should still be aware of their federal tax obligations.