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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.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Hawaii Enacts Legislation with Marketplace Nexus and Notice & Reporting Requirements Provisions

Hawaii has enacted legislation with marketplace nexus and notice and reporting requirements provisions, effective January 1, 2020.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

Hawaii Enacts Economic Nexus Legislation

Hawaii has enacted economic nexus legislation, effective July 1, 2018 and applicable to taxable years beginning after December 31, 2017.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Hawaii Updates Voluntary Disclosure Process

The Hawaii Department of Taxation (DOT) has updated its voluntary disclosure process, which allows taxpayers to voluntarily disclose any liability for all Hawaii taxes.

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.

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.

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…