Minimum Sales Rate Tax for 2024
| 4% | Column content | Column content | Column content | Column content | |
| 0.00% | Column content | Column content | Column content | Column content | |
| 0.50% | Column content | Column content | Column content | Column content | |
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| Scientific & Cultural Fac.(cd) | Column content | Column content | Column content | Column content | |
| Regional Transport Authority | Column content | Column content | Column content | Column content | |
| Minimum combined sales tax rate value | 4.5% | Column content | Column content | Column content | Column content |
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| Economic sales nexus threshold | $100,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | 200 | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | 20th day of the month following the close of the tax period. | Column content | Column content | Column content | Column content |
The base state sales tax rate in Hawaii is 4%, but since the city-specific tax rate is 0% and the Honolulu County tax rate is 0.5%, the minimum sales tax rate for Honolulu is 4.5%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Honolulu, businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for Honolulu
In Hawaii, what most states call sales tax is actually the, and it’s unique. Instead of taxing only the consumer, Hawaii’s GET is a tax on the business for the privilege of doing business in the state, which is then often passed on to customers. The GET applies to nearly all transactions, including services, and the rates are relatively low—around 4%, with slight variations by county—but it can add up fast because it’s applied at multiple levels of the business chain.
Other than the normal rate that applies to most goods and services, the tax rate is 0.15% for insurance commissions and 0.5% for wholesaling, manufacturing, producing, wholesale services, and use tax on imports for resale.
Services
Most services are taxable.
Goods
Most physical items, including appliances, vehicles, furniture, sports equipment, and electronics, incur sales tax.
Clothing
Generally taxable.
Electronics
Taxable.
SaaS
Taxable.
Digital Products
Taxable.
Software
Both off-the-shelf and custom software are taxable.
Freight/Shipping
Shipping fees are usually not taxed unless incorporated into the sales price.
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