An increase in federal payroll taxes that went into effect Jan. 1 hit the wallets of Hawaii wage earners in the first quarter, contributing to the first decline in personal income in nearly four years, according to a report released Friday.

Personal income, which includes salaries and wages, investment income and federal government payments, fell by 0.8 percent in the first quarter compared with the last three months of 2012, the federal Bureau of Economic Analysis reported. It was the first quarterly drop in personal income since the third quarter of 2009, when the economy was dragged down by a recession.

Workers in Hawaii and the rest of the country saw their payroll taxes go up by 2 percentage points at the start of the year as part of the "fiscal cliff" deal approved by Congress that ended a two-year "tax holiday." The amount employees contribute to Social Security was restored to the full 6.2 percent of their salary from the reduced 4.2 percent rate that had been in effect for 2011 and 2012. For an average worker making $45,000 a year, the tax increase amounted to a roughly $900 reduction in take-home pay.

In addition to the restoration of the payroll tax, the decline in first-quarter personal income reflected the acceleration of stock dividends and salary bonuses into the fourth quarter of 2012 in anticipation of higher individual tax rates in 2013, according to BEA.

Hawaii fared better than the nation as a whole, which experienced an average 1.2 percent drop in personal income, according to the report. Only five states had smaller declines in personal income, and just one — South Dakota — had an increase.

Income from dividends, interest and rental income in Hawaii fell by 2.9 percent in the first quarter, while salaries and wages fell by 0.8 percent. Government transfer receipts, which include Social Security and food stamps, rose by 1.4 percent.

Incomes in most industries were flat or lower in the first quarter compared with the fourth quarter. The biggest contributions to incomes were from the construction industry and the military.

The figures are not adjusted for inflation, which erodes the value of personal income. The state Department of Business, Economic Development and Tourism is forecasting that personal income in Hawaii will grow by 5 percent in 2013 but by only 2.6 percent after inflation is taken into account.