Total Range for 2025
| Base state sales tax rate | 4% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | 0%-0.5% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 4%-4.5% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | 20th of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in Hawaii is 4%, but since the local rates range from 0-0.5% the total sales tax range is 4-4.5%.
Note: In Hawaii, sales tax is actually called General Excise Tax (GET)
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.
Example of using the sales tax rate in a tax calculation:
Let’s say you run a small clothing store on Oahu in Hawaii. Here’s how to calculate the GET you owe on a sale:
- Sale Price: A customer purchases a shirt for $50 (pre-tax).
- GET Rate: Oahu has a 0.5% county surcharge on top of the base 4% GET rate, making it a total of 4.5% (check the Hawaii Department of Taxation website for specific rates in your county).
- GET Amount on Sale:
- GET = Sale Price x GET Rate
- GET = $50 x 4.5%
- GET = $2.25
Nexus: Why do you need to collect sales tax in Hawaii?
If you’re selling goods and services in Hawaii then sales tax (or in this case general excise tax) might apply! To determine your obligation, you must understand “nexus,” which ties businesses to states for tax purposes.
Two types of nexus exist:
- Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Hawaii, triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within Hawaii exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.
In Hawaii, there is also a transaction threshold of 200, which means that even if your sales aren’t over $100,000 if you’ve sold more than 200 items then you still need to pay sales tax.
Services
- Most services are taxable. If you’re unsure, it’s best to consult the Hawaii Department of Taxation or a tax professional.
Goods
- Unless your product falls under a specific exemption (like medical devices), you likely need to charge GET.
Freight/Shipping
- These are generally taxable along with the good being shipped. However, exceptions might exist depending on the specific circumstances so check the website or with your trusted tax professional (that’s us!).
Clothing
- The sales of clothes and footwear is subject to general excise tax in Hawaii
Electronics
- In Hawaii, electronics are taxable
SaaS
- SaaS (and related computer services) is subject to GET in Hawaii
Digital Products
- Digital goods are taxable in Hawaii
Software
- The sale of software is generally taxable. This includes both pre-written (canned) software and custom software, whether it is delivered on physical media or electronically.
How to register for sales tax in Hawaii
In Hawaii, sales tax is referred to as the General Excise Tax (GET). To register for a GET license, you have two options:
- Online: This is the faster and recommended method. You can register through the Hawaii Tax Online portal (https://tax.hawaii.gov/).
- Click “File and Pay your Taxes Online Here”
- You’ll need to fill out the State of Hawaii Basic Business Application (Form BB-1) and pay a one-time $20 registration fee.
- By mail or in-person: You can complete a paper Form BB-1, which you can find on the Hawaii Department of Taxation website. Mail it in or bring two copies to any district office along with the $20 fee. However, this method takes longer to process.
Whichever method you choose, be prepared to provide information about your business, including:
- Business name, address and contact details
- Federal Employer Identification Number (EIN)
- Date your business began or will begin operations
- Projected monthly sales and taxable sales
- Products or services you will be selling
After submitting your application, you can expect to receive your Hawaii Tax ID within a week if applying online, or 4-6 weeks by mail. For in-person applications, you’ll receive it right away.
How to collect sales tax in Hawaii
There are three steps to sales tax collection in Hawaii. Here’s how it works for businesses:
Registering for GET:
- You’ll need a GET license obtained through the Hawaii Department of Taxation – the steps for this are in the section above.
Collecting GET (Optional):
- Businesses can choose to include GET in their prices or display it separately on receipts. There’s no requirement to pass it on to the customer.
Calculating and Remitting GET:
- Regardless of collection method, businesses owe GET on their total sales. This includes any GET collected from customers (to cover the additional tax on that amount).
- The GET rate varies depending on the type of business and isn’t a flat rate like traditional sales tax.
- Businesses need to file and remit GET to the Hawaii Department of Taxation electronically or by mail using designated forms.
How to get a sales tax permit/license in Hawaii?
Prepare necessary details such as your business name, address, contact information, Employer Identification Number (EIN) or Social Security Number (SSN), and information about the business owners.
Apply for a GET license through the Hawaii Department of Taxation. You can complete the application online via the Hawaii Tax Online system or by mailing a paper application form, which can be obtained from the Department of Taxation.
When are Hawaii’s sales tax returns due?
The due date for filing Hawaii’s GET returns depends on the frequency you file with, which is determined when you register for your GET license. Here’s a breakdown:
- Monthly Filers: The due date is the 20th day of the month following the close of the tax period. For example, if January is your filing month, the return is due by February 20th.
- Quarterly Filers: The due date is the 20th day of the month following the close of the quarter. For instance, a return for the quarter ending in March would be due by April 20th.
- Semi-Annual Filers: The due date is the 20th day of the month following the close of the six-month period.
- Annual Filers: The due date is the 20th day of the fourth month following the close of the taxable year. For calendar-year filers (common for businesses), this means the return is due by April 20th of the following year.
Important Note: If the due date falls on a weekend or holiday, the filing deadline is pushed to the next business day.
Is anyone exempt from sales tax in Hawaii?
Yes, there are several exemptions from sales tax in Hawaii under the General Excise Tax (GET) system. Some key exemptions include:
- Sales of goods intended for resale are exempt from GET. The buyer must provide a valid resale certificate.
- Some services, such as medical and legal services, are generally exempt from GET.
- Sales to federal, state, and local government agencies, as well as certain nonprofit organizations, may be exempt.
- Sales of goods or services that are exported out of Hawaii are generally exempt.
- Sales of certain agricultural products and inputs are exempt under specific conditions.
- Prescription medications and some medical devices are exempt from GET.
- Groceries purchased with food stamps
