Hawaii Sales Tax Rate & Rules (2026)

Last updated: 2026-03-27

What is the sales tax rate in Hawaii?

What is taxable in Hawaii?

How do you register to collect sales tax in Hawaii?

What is the economic nexus threshold for Hawaii?

How to register for sales tax in Hawaii

Before you can collect sales tax, you need to register with the Hawaii Department of Taxation. Here is the step-by-step process.

1. Apply for a General Excise Tax (GET) License online through Hawaii Tax Online (HiTax) at hitax.hawaii.gov
2. Submit Form BB-1 (Basic Business Application) with your FEIN or SSN and business details
3. The license fee is $20 and must be paid at the time of application
4. Hawaii issues your GET license typically within 2-4 weeks
5. A single license covers all Hawaii locations, but you must report sales by county

How to collect sales tax in Hawaii

Once registered, you are responsible for charging the correct amount of sales tax on every taxable transaction. Here is how the collection process works in Hawaii.

1. Understand that Hawaii's GET is not a traditional sales tax — it's a tax on business gross receipts that most businesses pass on to customers
2. The standard GET rate is 4% (4.5% on Oahu due to the county surcharge)
3. Wholesale transactions are taxed at 0.5%
4. GET applies to virtually all goods and services, including many items exempt in other states
5. When passing GET to customers, you may charge up to 4.712% (on Oahu) to cover the tax-on-tax effect
6. Keep detailed records of all income by county for at least 3 years

How to file and remit sales tax in Hawaii

Filing your sales tax return on time is critical to avoid penalties. Hawaii requires electronic filing for most businesses.

1. File through Hawaii Tax Online (HiTax) at hitax.hawaii.gov
2. Filing frequency depends on your tax liability: monthly (over $4,000/year), quarterly ($2,000-$4,000/year), or semi-annually (under $2,000/year)
3. File Form G-45 (periodic return) for each filing period and Form G-49 (annual return) by April 20
4. Report gross income by activity type and county (Oahu, Maui, Hawaii, Kauai)
5. Pay electronically by the due date — the 20th of the month following the filing period
6. Retain all records for at least 3 years

What is exempt from Hawaii sales tax?

Not everything is subject to sales tax. Hawaii provides exemptions for certain products, buyers, and uses. Always verify the specific exemption requirements with the Hawaii Department of Taxation.

• •Sales for resale (taxed at 0.5% wholesale rate instead of 4%)
• •Amounts received by a contractor from a licensed contractor (subcontractor exemption)
• •Insurance proceeds and amounts received under a life insurance policy
• •Certain amounts received by nonprofit organizations
• •Federal government transactions
• •Certain agricultural products sold by the original producer

What are the highest combined sales tax rates in Hawaii?

Because Hawaii allows local jurisdictions to add their own sales taxes on top of the state rate, combined rates vary by location. Here are some of the highest combined rates in major Hawaii cities.

What is use tax in Hawaii?

Hawaii imposes a use tax at the same rate as GET (4%, or 4.5% on Oahu) on goods imported into Hawaii for use, consumption, or sale. The use tax applies to tangible personal property purchased from unlicensed sellers. Businesses must report and pay use tax on Form G-45/G-49. This commonly applies to equipment, supplies, and inventory purchased from mainland vendors.

Does Hawaii have marketplace facilitator rules?

Hawaii requires marketplace facilitators with more than $100,000 in Hawaii sales or 200 transactions to collect and remit GET on behalf of third-party sellers. Amazon, eBay, Etsy, and similar platforms collect GET on marketplace transactions. The marketplace facilitator is treated as the seller for GET purposes on these transactions.

What are the penalties for sales tax non-compliance in Hawaii?

Hawaii imposes a late-filing penalty of 5% per month (up to 25%). Interest accrues at approximately 8% per year (2/3 of 1% per month). The penalty for failure to obtain a GET license is $500 plus potential criminal prosecution. Fraud or willful evasion can result in penalties of 50% of the underpayment plus criminal fines and imprisonment.

This is general information, not legal or tax advice. Tax rules change frequently — always verify with the official state agency. Sources: Hawaii Department of Taxation.