Hawaii state seal

HawaiiSales Tax

A Complete Guide For Businesses

State Rate
4%

Local Tax
no

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%.

How food is taxed

Groceries are taxed at the full rate in Hawaii.

Nexus in Hawaii

Businesses establish a minimum tax connection to the state if any of the following apply:

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

More information about nexus in Hawaii is available here.

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