The Hawaii gross receipts tax, known officially as the General Excise Tax (GET), is a 4.5% tax on a business’s total gross income from activity in Hawaii, and it applies in every county as of 2026. It is not a sales tax charged to the buyer. It is a tax on the business itself for the privilege of doing business in the state, which means you owe it on every dollar of revenue you take in, before any deduction for rent, wages, materials, or subcontractors.
That single feature is what surprises people moving to Hawaii from states with a conventional sales tax or none at all. A contractor who collects $100,000 on a job and spends $80,000 on subs and supplies still owes GET on the full $100,000.
What the GET Actually Taxes
The tax is governed by Hawaii Revised Statutes Chapter 237. It reaches your total gross income from business activity in the state, with no deductions for the costs of producing that income.1Hawaii Department of Taxation. Hawaii Code Chapter 237 – General Excise Tax Law
“Engaging in business” under HRS 237-2 is defined broadly. It covers retail sales, professional services, rentals, construction, freelance work, and even some intercompany transfers.1Hawaii Department of Taxation. Hawaii Code Chapter 237 – General Excise Tax Law If you are generating revenue from activity in Hawaii, you almost certainly owe GET.
The Rate You Pay
The base rate depends on what your business does. Most retail sales and services are taxed at 4%. Wholesaling, manufacturing, and producing are taxed at 0.5%. Insurance commissions are taxed at 0.15%.2Department of Taxation. General Excise Tax Information Contracting is taxed at 4% of gross income.1Hawaii Department of Taxation. Hawaii Code Chapter 237 – General Excise Tax Law
On top of the state rate, every county now adds a 0.5% surcharge on activities taxed at the 4% rate. As of 2026, the surcharge applies in the City and County of Honolulu, Hawaiʻi County, Kauaʻi County, and Maui County, each through December 31, 2030. The surcharge does not apply to activities taxed at 0.5% or 0.15%, so wholesalers and manufacturers pay only the base rate.3State of Hawaii Department of Taxation. County Surcharge on General Excise and Use Tax The combined effective rate for most retail and service businesses is 4.5% statewide.
If your business operates in more than one county, you have to allocate gross receipts to each taxation district and file Form G-75 with your periodic and annual returns.3State of Hawaii Department of Taxation. County Surcharge on General Excise and Use Tax Businesses that run more than one type of activity have to segregate income by activity on their records and returns under HRS 237-14; a restaurant that also wholesales bulk ingredients cannot tax everything at a single rate.1Hawaii Department of Taxation. Hawaii Code Chapter 237 – General Excise Tax Law
Passing the Tax to Customers
Because the GET is a tax on the business rather than the buyer, you are not required to pass it on. You are allowed to. If you do pass on both the GET and the county surcharge, the maximum rate you can charge customers is 4.7120% in all four counties.2Department of Taxation. General Excise Tax Information The figure runs above 4.5% because the amount you collect from the customer is itself gross income, and that additional income is also taxable. The 4.7120% rate builds that pyramiding into the calculation.
If you pass the tax through, show it as a separate line item on invoices and receipts labeled as the Hawaii GET. Customers dispute vague surcharges more often than they dispute clearly identified taxes.
Who Owes GET, Including Out-of-State Sellers
You do not need a physical office or warehouse in Hawaii to owe GET. Under HRS 237-2.5, you are engaging in business in the state if, during the current or previous calendar year, your gross income from sales delivered into Hawaii reaches $100,000, or you complete 200 or more separate transactions with Hawaii customers.1Hawaii Department of Taxation. Hawaii Code Chapter 237 – General Excise Tax Law Cross either threshold and you must register and begin collecting and remitting.
Exempt and wholesale transactions still count toward those thresholds. You cannot avoid registration by arguing that all your Hawaii sales are wholesale.
Marketplace facilitators like Amazon, Etsy, and eBay have their own obligations under HRS 237-4.5. The law treats the platform as the seller for GET purposes, so the platform collects and remits the tax on sales made through it.1Hawaii Department of Taxation. Hawaii Code Chapter 237 – General Excise Tax Law If you sell only through such a marketplace, you may still need your own license, but the platform handles GET on those transactions. Any sales you make outside the platform remain yours to report.
Getting a GET License
Before you legally conduct business in Hawaii, you need a GET license. You apply on Form BB-1, the State of Hawaii Basic Business Application, with the Department of Taxation. The one-time license fee is $20.2Department of Taxation. General Excise Tax Information You can file online through Hawaii Tax Online, by mail to the Department of Taxation in Honolulu, or in person at any district tax office.
The license stays valid as long as your business operates. There is no annual renewal. You do, however, need to file returns on schedule, even for periods with no income. Conducting business without a license is itself a violation under HRS 237-9.1Hawaii Department of Taxation. Hawaii Code Chapter 237 – General Excise Tax Law
Filing and Paying
How often you file depends on how much GET you owe in a year. The Department may allow quarterly filing if your annual liability will not exceed $2,000, or semiannual filing if it will not exceed $1,000. Everyone else files monthly, and the Department can revoke less-frequent filing permission if your liability outgrows the threshold.4Legal Information Institute. Hawaii Code R 18-237-30 – Monthly, Quarterly, or Semiannual Returns
Two forms handle GET returns. Form G-45 is the periodic return, filed monthly, quarterly, or semiannually depending on your schedule, with payment due by the 20th of the month after the reporting period ends. Form G-49 is the annual return and reconciliation, filed once a year to true up your periodic payments against your total liability. For calendar-year filers, G-49 is due April 20 of the following year. Both can be filed and paid through Hawaii Tax Online, and if the 20th falls on a weekend or holiday, the deadline moves to the next business day.5Hawaii Department of Taxation. General Instructions for Filing the General Excise/Use Tax Returns
The Companion Use Tax
The use tax applies when you bring property, services, or contracting into Hawaii from an unlicensed out-of-state seller for use in the state. The rate is 4.5%, which includes the county surcharge now in effect in every county.6Hawaii Department of Taxation. Instructions for Form G-26 Use Tax Return
If you already have a GET license, you report use tax on your regular G-45 and G-49. If you do not have one, for example an individual importing a vehicle, you file Form G-26 by the 20th of the month after the import, and vehicle imports need the purchase invoice, freight bill, and vehicle identification number.6Hawaii Department of Taxation. Instructions for Form G-26 Use Tax Return
Exemptions Are Narrower Than You Think
The GET does exempt certain income, but the carve-outs are limited. Sales of prescription drugs and prosthetic devices, including vaccines, are exempt when sold to an individual by a hospital, pharmacy, or licensed practitioner.7Hawaii Department of Taxation. Tax Information Release No. 86-4 – Exemption From the General Excise Tax for Amounts Received for the Sale of Prescription Drugs and Prosthetic Devices Certain cooperative housing reimbursements, foster care payments from the state, and amounts received under specific federal veterans’ health care contracts are also exempt.1Hawaii Department of Taxation. Hawaii Code Chapter 237 – General Excise Tax Law
Some nonprofits qualify, but not automatically: 501(c)(3) status alone does not exempt an organization from GET, and the group has to meet specific conditions under Chapter 237. Agricultural producers selling through qualifying cooperatives may receive exemptions tied to how their products are processed and sold. Claiming an exemption you do not qualify for triggers the same penalties as any other underreporting.
Penalties and Interest
Hawaii’s penalty structure stacks late filing, late payment, negligence, and fraud as separate items.
- Failure to file: 5% of the unpaid tax for each month or partial month the return is late, capped at 25%.8Justia. Hawaii Code 231-39 – Additions to Taxes for Failure to File Return or Pay Tax
- Failure to pay after timely filing: up to 20% of the unpaid amount if you file on time but do not pay within 60 days.8Justia. Hawaii Code 231-39 – Additions to Taxes for Failure to File Return or Pay Tax
- Negligence or intentional disregard: up to 25% of the underpayment where the Department finds carelessness or deliberate disregard of rules without intent to defraud.8Justia. Hawaii Code 231-39 – Additions to Taxes for Failure to File Return or Pay Tax
- Fraud: up to 50% of the underpayment. Where a fraud penalty is assessed, the separate failure-to-file penalty does not apply to the same underpayment.8Justia. Hawaii Code 231-39 – Additions to Taxes for Failure to File Return or Pay Tax
Unpaid tax also accrues interest at two-thirds of 1% per month, or 8% annually, beginning the first calendar day after the payment date, weekend or not.9Department of Taxation. Frequently Asked Questions A separate 20% penalty under HRS 231-36.6 applies to substantial understatements.10Hawaii Department of Taxation. Tax Audit Guideline 2009-01 A small tax debt can grow quickly.
If You Disagree With an Assessment
You can appeal a Department assessment under HRS Chapter 232.11Hawaii Department of Taxation. Hawaii Revised Statutes Chapter 232 – Tax Appeals The first stage is the Board of Review, which holds an informal hearing and can allow or disallow exemptions, raise or lower the assessment, and decide questions of fact and law. The assessment is presumed correct, so the burden is on you to show it is wrong.12Justia. Hawaii Code 232-7 – Taxation Board of Review If that does not resolve the dispute, you can appeal to the Tax Appeal Court by filing a notice with the court clerk, paying costs under HRS 232-22, and serving the Director of Taxation.13The Judiciary State of Hawaiʻi. Rules of the Tax Appeal Court of the State of Hawaii Court proceedings follow the Hawaii Rules of Civil Procedure, and legal representation matters at that stage.