Three forms carry Hawaii’s General Excise Tax from registration through year-end. You register your business on Form BB-1, report gross income periodically on Form G-45, and reconcile the full year on Form G-49. The Hawaii general excise tax forms all run through Hawaii Tax Online, and each one plays a distinct role in keeping your GET account current.
Form BB-1: Registering Your Business
Before you can file any GET return, you need a Hawaii Tax Identification Number. Form BB-1, the Basic Business Application, is how you get one.1Hawaii Department of Taxation. Hawaii Basic Business Application The registration fee for a general excise tax license is $20.2Hawaii Department of Taxation. Form BB-1 Packet – State of Hawaii Basic Business Application
On the BB-1 you choose the type of GET license that matches your business activity, such as retailing, wholesaling, or services. That classification tells the Department of Taxation how to categorize your account and which rate structure applies. The form also collects your federal Employer Identification Number (or Social Security Number if you don’t have one), business address, and the date you began or plan to begin operating in Hawaii. You can file the BB-1 online through Hawaii Tax Online or mail a paper version.
Form G-45: The Periodic Return You’ll File Most Often
Once you’re registered, Form G-45, the General Excise/Use Tax Return, is the workhorse. You’ll file it monthly, quarterly, or semiannually depending on your annual GET liability.3Department of Taxation. General Excise and Use Tax
The form separates your gross income by activity type across four parts:4Hawaii Department of Taxation. Form G-45 General Excise/Use Tax Return
- Part I, taxed at 0.5%: wholesaling, manufacturing, producing, wholesale services, and landed value of imports for resale.
- Part II, taxed at 4%: retailing, services (including professional), contracting, theater and amusement, commissions, transient accommodation rentals, other rentals, interest, and all other income.
- Part III, taxed at 0.15%: insurance commissions.
- Part IV: county surcharge, broken out by the county where you conducted business.
For each activity line you enter gross proceeds in Column A, subtract exemptions or deductions in Column B, and report taxable income in Column C. Multiply Column C by the applicable rate to calculate tax due. The activity breakdown is where most errors happen. Lump wholesale income into retail and you overpay at 4% instead of 0.5%; report retail at the wholesale rate and you underpay and risk an assessment.
Report all gross income before applying exemptions, including cash and credit transactions. Even a period with no activity still requires a return showing zero. Skipping a zero return triggers the same late-filing penalty as skipping one with tax due.
How Often You File G-45
Filing frequency depends on your estimated annual GET liability:5Justia. Hawaii Code 237-30 – Monthly, Quarterly, or Semiannual Return, Computation of Tax, Payment
- Monthly if your annual liability exceeds $4,000.
- Quarterly if your annual liability is $4,000 or less.
- Semiannually if your annual liability is $2,000 or less.
Quarterly and semiannual schedules are not automatic. The director of taxation grants a permit to use them, and can revoke that permit if you fall behind on filing or payment or if your liability outgrows the threshold.
Every periodic return is due on the 20th day of the month following the close of the reporting period.6Department of Taxation. General Excise Tax (GET) Information A monthly filer covering January files by February 20. A quarterly filer covering January through March files by April 20.
Form G-49: The Annual Reconciliation
At the end of your tax year, Form G-49, the General Excise/Use Annual Return and Reconciliation, compares the tax you paid through your G-45 filings against your actual annual liability.7State of Hawaii — Department of Taxation. Form G-49 – General Excise/Use Annual Return and Reconciliation If you overpaid, you claim a refund or credit. If you underpaid, you owe the difference.
The G-49 uses the same activity categories and rate structure as the G-45 but covers the full twelve months. It’s also where you reconcile discrepancies, such as income you shifted between wholesale and retail categories during the year, or exemptions that turned out not to apply. For calendar-year filers, the G-49 is due April 20 of the following year.8State of Hawaii Department of Taxation. General Instructions for Filing the General Excise/Use Tax Returns More generally, the deadline is the 20th day of the fourth month after the close of your tax year. Need more time? Request an extension with Form GEW-TA-RV-6, but note that an extension to file is not an extension to pay.
GET Rates and the County Surcharge
Three base rates apply, depending on the activity:6Department of Taxation. General Excise Tax (GET) Information
- 4% for retailing, services, contracting, rentals, commissions, and most other business activity.
- 0.5% for wholesaling, manufacturing, producing, and wholesale services.
- 0.15% for insurance commissions.
All four counties have adopted a 0.5% surcharge on activities taxed at the 4% rate, in effect through December 31, 2030.9Department of Taxation. County Surcharge on General Excise and Use Tax The surcharge doesn’t apply to activities taxed at 0.5% or 0.15%. For most retail and service businesses, the effective combined rate is 4.5%.
Passing the Tax to Customers
The GET is legally the business’s tax, not the customer’s, so you can’t simply add 4.5% to an invoice and label it GET. Hawaii instead authorizes a maximum pass-on rate of 4.7120% in counties with the 0.5% surcharge, which is every county at present.6Department of Taxation. General Excise Tax (GET) Information The rate is slightly higher than 4.5% because the pass-on amount itself becomes taxable income on your G-45. Passing the tax on is optional, but overcharging can cause problems with both customers and the Department.
Submitting the Forms
Electronic filing has been mandatory for GET returns since July 1, 2020.10Department of Taxation. Mandatory Electronic Filing You file through Hawaii Tax Online, which handles both G-45 and G-49 returns, accepts payments, and stores your filing history.11State of Hawaii Department of Taxation. General Instructions for Filing the General Excise/Use Tax Returns The system issues a confirmation number that serves as your proof of filing.
If you qualify for a hardship exemption from the e-file mandate, you can mail paper forms to the Department at the address for your island. Oahu filers use the Honolulu office; neighbor island filers use the regional centers listed in the form instructions. If you mail, make sure the envelope is postmarked by the deadline and keep a copy of the return along with proof of postage.
Penalties for Filing Late
A late GET return carries a penalty of 5% of the unpaid tax for each month or partial month it’s late, up to 25%.6Department of Taxation. General Excise Tax (GET) Information Interest also accrues at two-thirds of 1% per month on unpaid tax and penalties, starting the first calendar day after payment was due.12Department of Taxation. Frequently Asked Questions Filing without paying still triggers the late-payment penalty on the balance due, and paying without filing still leaves the late-filing penalty in place. Both G-45 and G-49 are subject to these charges.
Exemptions and Schedule GE
Hawaii Revised Statutes exclude certain categories of income from the GET base.13Justia. Hawaii Code 237-24 – Amounts Not Taxable Common ones include:
- Wages and salaries received as an employee.
- Insurance and workers’ compensation proceeds for injury, death, or sickness.
- Gifts, bequests, and inheritances.
- Compensatory tort damages for personal injury or property destruction, though punitive damages are taxable.
- Up to $2,000 per year of gross income for businesses owned entirely by blind, deaf, or totally disabled individuals.
Separately, sales of tangible personal property to the federal government are exempt under § 237-25.14GSA SmartPay. General Excise Taxation of Sales of Tangible Personal Property in Hawaii Businesses that sublease real property may claim a deduction equal to 87.5% of the rent they pay their own lessor, if both the lease and sublease are in writing and the lessor certifies they are paying GET on the rental income.15Justia. Hawaii Code 237-16.5 – Tax on Written Real Property Leases; Deduction Allowed
When you claim an exemption or deduction on Form G-45, report the full gross amount in Column A and the exempt amount in Column B. You may also need to attach Schedule GE to detail the deductions claimed.
Out-of-State Sellers
You don’t need a physical location in Hawaii to owe GET. Under the state’s economic nexus rules, an out-of-state business that earns $100,000 or more in gross income from Hawaii sources, or conducts 200 or more separate business transactions in the state during the current or preceding calendar year, is considered to be doing business in Hawaii and must register.16Hawaii Department of Taxation. Tax Information Release No. 2020-05 Crossing either threshold means filing Form BB-1, obtaining a Hawaii Tax ID, and filing G-45 and G-49 returns the same as a local business. Remote sellers typically report income under retailing or services at 4%, plus the county surcharge where the customer is located.
Records to Keep
Hold on to the records that support the income, exemptions, and deductions on your GET returns: bank statements, sales receipts, invoices, contracts, resale certificates from wholesale buyers, and lessor certifications for the sublease deduction. If you’re audited and can’t substantiate a claimed exemption, the Department of Taxation will treat the full gross amount as taxable and assess the difference plus penalties and interest.