Navigating General Excise Tax in Hawaii

Q: Do I need to collect Hawaii GET if my business is not located in Hawaii?

Yes. If your business exceeds $100,000 in sales or 200 transactions into Hawaii within the current or previous year, you must register and collect GET even without physical presence.

Q: Can I visibly pass the GET on to customers?

Yes. Hawaii allows businesses to visibly pass on the GET by adding it to the customer’s invoice, but the amount collected becomes part of your gross income and is itself subject to GET unless you perform the “tax-on-tax” calculation.

Q: Is resale exemption allowed in Hawaii?

Yes. Hawaii allows a wholesale rate of 0.5% on eligible resale or business-to-business transactions, but you must obtain the proper resale certificate (Form G-17) from the buyer to apply the reduced rate.

This guide provides an overview of General Excise Tax in Hawaii, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Hawaii.

Last Updated: May 2025

99%

of business transactions, including services, are subject to the general excise tax.

Hawaii at a glance.

State

Hawaii

Tax Rate Range

4% - 4.5%

Economic Nexus Threshold

$100,000 in gross sales or 200 transactions

Filling Deadlines

Periodic GET returns (Form G-45) are due on the 20th day of the month following the filing period

Is SaaS Taxable?

Yes

Base Tax Rate:

4%

When should your
business collect Sales
Tax in Hawaii?

A business must begin collecting and remitting Hawaii GET as soon as it establishes either physical or economic nexus in the state. Once nexus is reached, either by physical presence or economic activity, Hawaii requires immediate registration, with no grace period, and GET must be charged starting from the moment the threshold is crossed.

Hawaii physical sales tax nexus.

A business establishes physical nexus in Hawaii when it has any in-state presence or conducts activities within the state connected to generating income.

Sales tax physical nexus checklist for Hawaii

The following conditions might establish a physical nexus in Hawaii:

Having employees, contractors, or agents in Hawaii

Maintaining an office, store, or warehouse in the state

Doing business such as retail sales, services, rentals, construction, or royalties

Engaging in leasing or renting property in Hawaii

Any person “engaging in business” in the state under HRS §237-2 and TIR 95-5

Which services are taxable in Hawaii?

Professional and business services, since all service income is subject to GET.

Contracting and construction services, which are explicitly listed as taxable activities.

Leasing and rental services, because GET applies to rentals of property.

Digital and SaaS services, since electronically delivered services and subscriptions are taxed.

Hawaii taxes all services because the GET applies broadly to gross income from nearly any business activity.

Hawaii sales tax information:

Multiply the gross income by the 4% statewide rate or 4.5% for Honolulu County, including shipping and handling. Hawaii taxes the seller on total receipts, not the buyer.

Hawaii taxes all gross income from business activities, including goods, services, rentals, digital products, SaaS, handling charges, and most other income streams unless specifically exempt.

Register online at Hawaii Tax Online by selecting “Register New Business License” and completing the BB-1 (Basic Business Application); the license costs $20, and online applications usually issue a tax ID within 5–7 business days.

After registration, businesses must collect GET on all taxable gross income at 4% or 4.5%, list the GET separately if choosing to visibly pass it on, and remit taxes via Hawaii Tax Online using the periodic Form G-45 and annual Form G-49. Handling is always taxable, and shipping is taxable unless separately stated.

Sales Tax return due dates explained.

Hawaii assigns filing frequency based on annual liability:

Monthly filers: owe more than $4,000 in GET per year,
Quarterly filers: owe $2,000–$4,000 per year,
Semiannual filers: owe less than $2,000.

All periodic returns (Form G-45) are due on the 20th of the month following the period, and all taxpayers must also file an annual reconciliation (Form G-49) due April 20 of the next year. Large taxpayers must e-file and e-pay through Hawaii Tax Online, while smaller filers may submit paper returns.

FAQs

Do I need to collect Hawaii GET if my business is not located in Hawaii?

Yes. If your business exceeds $100,000 in sales or 200 transactions into Hawaii within the current or previous year, you must register and collect GET even without physical presence.

Can I visibly pass the GET on to customers?

Yes. Hawaii allows businesses to visibly pass on the GET by adding it to the customer’s invoice, but the amount collected becomes part of your gross income and is itself subject to GET unless you perform the “tax-on-tax” calculation.

Is resale exemption allowed in Hawaii?

Yes. Hawaii allows a wholesale rate of 0.5% on eligible resale or business-to-business transactions, but you must obtain the proper resale certificate (Form G-17) from the buyer to apply the reduced rate.

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Navigating General Excise Tax in Hawaii

This guide provides an overview of General Excise Tax in Hawaii, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Hawaii.

Last Updated: May 2025

99%

of business transactions, including services, are subject to the general excise tax.

Hawaii at a glance.

State

Hawaii

Tax Rate Range

4% - 4.5%

Economic Nexus Threshold

$100,000 in gross sales or 200 transactions

Filling Deadlines

Periodic GET returns (Form G-45) are due on the 20th day of the month following the filing period

Is SaaS Taxable?

Yes

Base Tax Rate:

4%

When should your
business collect Sales
Tax in Hawaii?

A business must begin collecting and remitting Hawaii GET as soon as it establishes either physical or economic nexus in the state. Once nexus is reached, either by physical presence or economic activity, Hawaii requires immediate registration, with no grace period, and GET must be charged starting from the moment the threshold is crossed.

Hawaii physical sales tax nexus.

A business establishes physical nexus in Hawaii when it has any in-state presence or conducts activities within the state connected to generating income.

Sales tax physical nexus checklist for Hawaii

The following conditions might establish a physical nexus in Hawaii:

Having employees, contractors, or agents in Hawaii

Maintaining an office, store, or warehouse in the state

Doing business such as retail sales, services, rentals, construction, or royalties

Engaging in leasing or renting property in Hawaii

Any person “engaging in business” in the state under HRS §237-2 and TIR 95-5

Which services are taxable in Hawaii?

Hawaii taxes all services because the GET applies broadly to gross income from nearly any business activity.

Professional and business services, since all service income is subject to GET.

Contracting and construction services, which are explicitly listed as taxable activities.

Leasing and rental services, because GET applies to rentals of property.

Digital and SaaS services, since electronically delivered services and subscriptions are taxed.

Hawaii sales tax information:

Multiply the gross income by the 4% statewide rate or 4.5% for Honolulu County, including shipping and handling. Hawaii taxes the seller on total receipts, not the buyer.

Hawaii taxes all gross income from business activities, including goods, services, rentals, digital products, SaaS, handling charges, and most other income streams unless specifically exempt.

Register online at Hawaii Tax Online by selecting “Register New Business License” and completing the BB-1 (Basic Business Application); the license costs $20, and online applications usually issue a tax ID within 5–7 business days.

After registration, businesses must collect GET on all taxable gross income at 4% or 4.5%, list the GET separately if choosing to visibly pass it on, and remit taxes via Hawaii Tax Online using the periodic Form G-45 and annual Form G-49. Handling is always taxable, and shipping is taxable unless separately stated.

Sales Tax return due dates explained.

Hawaii assigns filing frequency based on annual liability:

Monthly filers: owe more than $4,000 in GET per year,
Quarterly filers: owe $2,000–$4,000 per year,
Semiannual filers: owe less than $2,000.

All periodic returns (Form G-45) are due on the 20th of the month following the period, and all taxpayers must also file an annual reconciliation (Form G-49) due April 20 of the next year. Large taxpayers must e-file and e-pay through Hawaii Tax Online, while smaller filers may submit paper returns.

FAQs

Do I need to collect Hawaii GET if my business is not located in Hawaii?

Yes. If your business exceeds $100,000 in sales or 200 transactions into Hawaii within the current or previous year, you must register and collect GET even without physical presence.

Can I visibly pass the GET on to customers?

Yes. Hawaii allows businesses to visibly pass on the GET by adding it to the customer’s invoice, but the amount collected becomes part of your gross income and is itself subject to GET unless you perform the “tax-on-tax” calculation.

Is resale exemption allowed in Hawaii?

Yes. Hawaii allows a wholesale rate of 0.5% on eligible resale or business-to-business transactions, but you must obtain the proper resale certificate (Form G-17) from the buyer to apply the reduced rate.

Related content.

US Sales Tax

12 May 2026

The Myth of Marketplace Protection: What Sellers Misunderstand

The Myth of Marketplace Protection: What Sellers Misunderstand When marketplace facilitator laws first came into effect across US states following the 2018 South Dakota v. Wayfair decision, many sellers breathed a sigh of relief. If platforms like Amazon, Shopify, or Etsy were now legally required to collect and remit sales tax on behalf of third-party sellers, […]

Read More

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6 May 2026

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Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

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Navigating General Excise Tax in Hawaii

99%

State

Hawaii

Tax Rate Range

4% - 4.5%

Economic Nexus Threshold

$100,000 in gross sales or 200 transactions

Filling Deadlines

Periodic GET returns (Form G-45) are due on the 20th day of the month following the filing period

Is SaaS Taxable?

Yes

Base Tax Rate:

4%

When should yourbusiness collect SalesTax in Hawaii?

Hawaii physical sales tax nexus.

A business establishes physical nexus in Hawaii when it has any in-state presence or conducts activities within the state connected to generating income.

Sales tax physical nexus checklist for Hawaii

Which services are taxable in Hawaii?

Hawaii taxes all gross income from business activities, including goods, services, rentals, digital products, SaaS, handling charges, and most other income streams unless specifically exempt.

FAQs

Related content.

The Myth of Marketplace Protection: What Sellers Misunderstand

How the VAT IT and Brex Integration Streamlines VAT Reclaim

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S.

6 Best US Sales Tax Compliance Solutions in 2026: An Honest Comparison

What is Peppol and How Does It Affect Your Business When e-Invoicing

Top Global VAT Solutions in 2026

9 Best e-Invoicing Compliance Solutions

e-Invoicing Requirements for B2B Sellers: What You Need to Have in Place

Quarterly VAT Return Dates: How to Stay Compliant All Year

Navigating General Excise Tax in Hawaii

99%

State

Hawaii

Tax Rate Range

4% - 4.5%

Economic Nexus Threshold

$100,000 in gross sales or 200 transactions

Filling Deadlines

Periodic GET returns (Form G-45) are due on the 20th day of the month following the filing period

Is SaaS Taxable?

Yes

Base Tax Rate:

4%

When should yourbusiness collect SalesTax in Hawaii?

Hawaii physical sales tax nexus.

A business establishes physical nexus in Hawaii when it has any in-state presence or conducts activities within the state connected to generating income.

Sales tax physical nexus checklist for Hawaii

The following conditions might establish a physical nexus in Hawaii:

Which services are taxable in Hawaii?

Hawaii taxes all services because the GET applies broadly to gross income from nearly any business activity.

Hawaii taxes all gross income from business activities, including goods, services, rentals, digital products, SaaS, handling charges, and most other income streams unless specifically exempt.

FAQs

Related content.

The Myth of Marketplace Protection: What Sellers Misunderstand

How the VAT IT and Brex Integration Streamlines VAT Reclaim

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S.

6 Best US Sales Tax Compliance Solutions in 2026: An Honest Comparison

What is Peppol and How Does It Affect Your Business When e-Invoicing

Top Global VAT Solutions in 2026

9 Best e-Invoicing Compliance Solutions

e-Invoicing Requirements for B2B Sellers: What You Need to Have in Place

Quarterly VAT Return Dates: How to Stay Compliant All Year

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When should your
business collect Sales
Tax in Hawaii?

When should your
business collect Sales
Tax in Hawaii?