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Hawaii Sales Tax

On this page you will find handy sales and use tax information about Hawaii.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Hawaii that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

4.000% There is a .500% use tax on merchandise imported into the state for resale purposes. Imports for consumption are taxed at the same rate as the sales tax. The state has reduced rates for sales of certain types of items.
Range of Local Rates

0% – 0.5% Some local jurisdictions do not impose a sales tax.
Local Rates Apply to Use Tax

N/A
Remote Seller Nexus Rules
REPORTING REQUIREMENTS

1/1/2020
ECONOMIC NEXUS

7/1/2018 – see state notice
MARKETPLACE NEXUS

1/1/2020
Administration Information
Streamlined Sales Tax Status

Advisory State
NUMBER OF TAXING AUTHORITIES

2 Sales Tax Jurisdictions
HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

General excise tax and use tax return due 20th day of the month following reporting period
Exemption Information
RESALE CERTIFICATE

Hawaii Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: Hawaii imposes a General Excise Tax (v. a sales tax) which applies to all transactions in some manner. If a wholesaler sells product(s) to a retail to resell, the wholesaler is taxed at 0.5% on its sale to the retailer. The retailer is taxed at 4% (plus the county surcharge if applicable) on its sale to the final consumer.

 

Entity types of exemptions: There are no exemptions based on a customer’s tax-exempt status. As a result, Hawaii does not issue tax exemption certificates to tax-exempt organizations, government agencies, or credit unions to exempt their purchases from Hawaii businesses. The only exception located is if a business sells goods to the federal government or a credit union, the sale is exempt and the business may claim a deduction.

 

Hawaii General Excise and Use Tax Forms
State Links
State Tax Web Page

Hawaii Department of Taxation
Rate Look-Up Page

Hawaii GET and Use Tax Rate Look-Up
Registration Link

Register for Hawaii Tax
History & Fun Facts
HISTORY

Hawaii does not have a sales tax per se, but it does have a gross receipts tax (called the General Excise Tax) and a use tax which apply to nearly every conceivable type of transaction (including services), and is technically charged to the business rather than the consumer. Hawaii law allows businesses to pass on the tax to the consumer in similar fashion to a sales tax.

 

Hawaii enacted its general excise tax in 1935. The use tax was enacted in 1965 and replaced the former compensating and consumption taxes.
FUN FACTS
  • Hawaii passed a law to give land owners an incentive to care for an “exceptional tree” on their grounds with a GET deduction of up to $3,000 per year for upkeep and maintenance of a tree that has historical or cultural value.

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Hawaii Requires Clearance Certificates for Businesses to Sell Goods or Bid on Contracts

Businesses and organizations must obtain federal and state tax clearance certificates to sell goods or contract with the state of Hawaii. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

Hawaii House of Representatives Passes SST Conformity Legislation

Hawaii\’s House of Representatives has passed legislation that would conform the state\’s general excise tax laws to the provisions of the Streamlined Sales and Use Tax (SST) Agreement.

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Hawaii Senate Passes SST Conformity Legislation

Legislation has been passed by the Hawaii Senate that would conform Hawaii general excise tax laws with the Streamlined Sales and Use Tax (SST) Agreement.

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Hawaii Enacts Nursing Facility Sustainability Fee

Hawaii has created a provider fee that is imposed on health care items or services provided by nursing facilities in Hawaii, effective July 1, 2012 through June 30, 2013.

Hawaii SST Conformity Legislation Dead

Hawaii SST Conformity Legislation Dead. A bill that would have conformed Hawaii, an advisor state on the SST Governing Board, to the provisions of the Streamlined Sales and Use Tax (SST) Agreement died on April 29, 2010. The legislation, as…

Hawaii Rental Receipts Not Taxable for Agent

According to a Hawaii Letter Ruling, a real property rental agent’s receipts of rental deposits and payments that were forwarded to the real property owners were considered income of the owners, and therefore the agent was not liable for Hawaii…

Hawaii Introduces SST Conformity Legislation

The Hawaii House of Representatives has introduced legislation to conform Hawaii\’s general excise tax laws to the provisions of the Streamlined Sales and Use Tax (SST) Agreement.

Jet Engine Imported for Use as Spare Part not Subject to Use Tax in Hawaii

A commercial airline\’s purchase and subsequent importation of a jet engine into Hawaii for use as a spare part in the repair and maintenance of its jet aircraft fleet is not subject Hawaii use tax.

Hawaii SST Non-Conformity – Bill Vetoed

Hawaii Governor Linda Lingle has vetoed Senate Bill 1678, which would have conformed Hawaii general excise tax laws with the Streamlined Sales and Use Tax Agreement.

Nexus Presumption Bill Vetoed by Governor in Hawaii

House Bill 1405, that would have enacted a nexus presumption for retailers that enter into an agreement with a resident, under which the resident, for a commission or other consideration, directly or indirectly refers potential customers to the seller, has…

Hawaii Announces Amnesty Program

The Hawaii Department of Taxation is offering a \”Tax Fresh Start Program\” to taxpayers who owe eligible taxes for any taxable period.

Hawaii Counties May Levy Surcharge Tax

Passed into law on July 13, 2005, Act 247 allows Hawaii counties to levy a local surcharge on excise and use tax of up to one-half percent of all gross proceeds and income.

Hawaii repeals requirement to “”pay-to-play”” tax before a dispute can be appealed.

As of July 1, 2004, it is no longer required that a taxpayer pay tax on an amount in question prior to filing with the Tax Appeal Court. (HB 851, signed in June 2004.)

Hawaii clarifies application of use tax to imported goods.

Hawaii Legislature has amended the definitions of \”import\” and \”purchaser\” to clarify that the .5% use tax applies to the purchase of tangible property from an unlicensed seller, regardless of whether the title passed within or outside of Hawaii.