This blog was last updated on January 8, 2026
Hawaii imposes a statewide General Excise Tax (GET) rate of 4%. The state does impose local taxes at the County level. Counties are authorized to adopt a surcharge on the 4% GE tax rate. Businesses may pass on the GE tax and any applicable county surcharge to customers at the maximum pass-on rate. All counties in the state of Hawaii have adopted said surcharge with a current rate of 0.50%.
What’s Taxable in Hawaii?
Hawaii sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state. Understanding the nuances of sales tax collection in Hawaii is essential for businesses to stay compliant.
Examples of taxable items [and services] include:
- Clothing
- Prewritten computer software
- Non-prescription medical items or drugs
- Telecommunication services
- Certain installation or repair services
- Software as a Service (SaaS)
Sales Tax Nexus in Hawaii
A seller is liable to collect and remit Hawaii sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Hawaii: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Hawaii.
Hawaii: Economic Nexus
Hawaii enforces economic nexus for remote sellers. If your business has:
- Varies, Over $100,000 in sales, or
- More than 200 transactions] in Hawaii during the previous calendar year;
you may be required to register for and collect Hawaii sales tax.
Hawaii Sales Tax Exemptions
Certain sales in Hawaii are considered generally exempt from the sales and use tax requirements.
Exempt Products and Services
Examples of exempt products and services in Hawaii include:
- Food and food ingredients
- Agricultural items
- Medical equipment
- Digital goods (digital books, digital audio-visual works, digital audio)
Entity or Use Based Exemptions
Additionally, Hawaii exempts sales to certain entities from the sales/use tax, including the following:
- Certain qualified nonprofit entities
- 501(c)(3) and 501(c)(4) organizations
- Churches and houses of religious worship
- Nonprofit schools, hospitals and homes for children and aged persons
- Certain wholesalers
- Retailers selling for resale
- Industrial processors
- Schools
- Government
How to Claim Sales Tax Exemption in Hawaii
GET exemption certificates enable a purchaser to make tax-free purchases that would normally be subject to sales tax. The purchaser fills out the certificate and gives it to the seller. The seller keeps the certificate and may then sell property or services to the purchaser without charging sales tax.
Additional guidance and applicable forms can be found online here.
Hawaii Filing and Remittance Requirements
Hawaii offers multiple methods for filing and remitting GET:
- Forms G-45, G-49 for Semiannual, Quarterly, Monthly or Annually
- E-filing through Hawaii Tax Online (HTO)
- Filing is always due on the 20th day of the calendar month following the end of the filing period.
Frequently Asked Questions
Is Hawaii a part of the Streamlined Sales Tax (SST) initiative?
No, Hawaii is NOT part of the Streamlined Sales Tax (SST) initiative
Are there any special point of sale fees in Hawaii?
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Hawaii imposes the following point of sale fees:
- Bottle Deposit Fees
- Bag fees imposed by local municipalities
How to Register for a Hawaii Sales Tax License?
Businesses or individuals selling tangible personal property or certain services to Hawaii consumers need to register for a General Excise Tax (GET) license. More information may be found at the Hawaii Tax Portal under the Register New Business License link.
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
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