Hawaii state seal

HawaiiSales Tax

A Complete Guide For Businesses

State Rate
4%

Local Tax
yes

Phone
(808) 587-4242

General requirements

Hawaii does not charge sales tax to the buyer. The state does impose a General Excise Tax (GET) on the seller. General Excise Tax is a tax on a gross income, rather than a sales tax on tangible goods.

Rates

General Excise Tax rates range from 0.15% to 4%, depending on the business activity. Local taxes can bring the GET rate as high as 4.5%.

For a fast and accurate sales tax rate lookup by zip code, use our up-to-date calculator below.

Look up your Hawaii sales tax rate:

How food is taxed

Groceries are taxed at the full rate in Hawaii.

Nexus in Hawaii

Businesses activities that establish a minimum tax connection to the state include:

  • Having physical offices or affiliate offices in Hawaii
  • Providing services in the state
  • Having business representatives in the state for any period of time

Economic nexus in Hawaii:

  • According to state law, out-of-state sellers whose sales exceed $100,000 gross revenue or 200 separate transactions into Hawaii in the current or previous calendar year are required to register with the state and obtain a GET license, collect sales tax on sales to Hawaii, and remit that sales tax to the state.
  • Enforcement date: July 1, 2018 (some exceptions explained here).

More information about nexus in Hawaii is available in this nexus guide.

Filing schedule

Due dates are as follows:

  • Annual filers: 20th day of the fourth month following the previous tax year
  • Semi-annual filers: 20th of the month following the previous tax period
  • Quarterly filers: 20th of the month following the previous tax period
  • Monthly filers: 20th of the month following the previous tax period

Registering to do business is Hawaii

You can register a new business in Hawaii online at the Hawaii Business Express.

Penalties

Penalties and interest for failure to file on time are calculated as follows:

  • Penalties: 5% per month on unpaid tax, not to exceed 25%
  • Interest: 2/3 of 1% on unpaid taxes and penalties per month

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