That's brings "tax freedom day" in the islands to May 13, two days later than last year and four days later than the national average, according to the national Tax Foundation.

The Washington-based nonprofit group issued its survey yesterday, on the eve of the federal tax deadline.

Hawaii again is among the hardest hit in the nation, one of only eight states and the District of Columbia where it takes until May 13 or later to pay all the tax bills.

Looking at the percentage of income that goes to pay taxes, Hawaii at 36.3 percent is exceeded only by New York and Connecticut.

And when it comes to state and local taxes alone, Hawaii ranks higher than anyone else, with 13.4 percent of income going to pay those taxes.

The numbers don't surprise Lowell Kalapa, director of the Tax Foundation of Hawaii, which is not affiliated with the national group.

Hawaii developed an oversized government in the boom years, he said. "We had a huge windfall in taxes, partly because of the robust economy." That led to major new programs but also to major new taxes, like the transient accommodations tax, Kalapa said.

Since the economic bubble burst in the late 1980s, government has had to try to work out how to fund the programs, he said. "We're seeing our Legislature trying to grapple with that right now."

Meanwhile government has found other ways to increase income without increasing taxes, such as through user fees and government filing fees. All that trickles down to higher taxes in the end as costs are passed on, Kalapa said.

"Businesses don't pay taxes. They just pass it on to their customers, or if they can't they go out of business," he said.