Hawaii does not levy a traditional sales tax on vehicle purchases, so the Hawaii vehicle sales tax most buyers ask about is really the General Excise Tax that dealers pass through to customers at a maximum rate of 4.712%. Private sales between individuals typically owe no state tax at all under the casual sale exemption, and vehicles brought in from out of state are hit with a Use Tax at the same 4.5% effective rate as dealer purchases. What you actually pay depends on who you buy from and where the car comes from.
What You Pay at a Hawaii Dealership
The General Excise Tax is technically a tax on the dealer’s gross income, not a sales tax charged to you. Dealers are allowed to pass it along, and nearly all of them do. The base GET rate is 4%, and every Hawaii county now adds a 0.5% surcharge. Honolulu has had the surcharge since 2007, Kauai since 2019, Hawaii County since 2020, and Maui since 2024. All four surcharges run through December 31, 2030.1Hawaii Department of Taxation. County Surcharge on General Excise and Use Tax
Because the passed-on amount itself becomes part of the dealer’s taxable gross income, the math produces a tax-on-tax effect. The maximum a dealer can charge you is 4.712%, not a flat 4.5%.1Hawaii Department of Taxation. County Surcharge on General Excise and Use Tax On a $30,000 vehicle, that works out to about $1,414 passed through to the buyer.
The tax applies to the full purchase price, including any dealer-added options and accessories. Separately stated government fees, like title and registration costs, are not part of the taxable amount.
Buying From a Private Seller in Hawaii
This is where Hawaii differs sharply from most states. When you buy a vehicle from a private individual who isn’t in the business of selling cars, the transaction is classified as a “casual sale.” Casual sales are exempt from both the General Excise Tax (because the seller isn’t a business) and the Use Tax.2Hawaii Department of Taxation. Form G-27 Motor Vehicle Use Tax Certification Most person-to-person vehicle sales within Hawaii carry no state tax obligation for the buyer.
To claim the exemption, file Form G-27 when you register the vehicle with your county. Check the box indicating the vehicle was purchased in a casual sale and attach a copy of the title transfer document.2Hawaii Department of Taxation. Form G-27 Motor Vehicle Use Tax Certification The form certifies to the county motor vehicle office that no Use Tax is owed.
One caveat matters. If the seller regularly buys and resells vehicles, even without a dealer license, the transaction may not qualify as a casual sale. The exemption is meant for occasional, isolated sales of personal property.
Buying a Vehicle From Out of State
Hawaii’s Use Tax exists to level the field between local businesses that pay GET and out-of-state businesses that don’t. If you buy a vehicle from an out-of-state dealer or business and bring it to Hawaii, you owe Use Tax at 4% plus the 0.5% county surcharge, for a total of 4.5% in every county.3Justia. Hawaii Code 238-2 – Imposition of Tax on Tangible Personal Property, Exemptions
The tax is calculated on the “landed value” of the vehicle when it arrives in Hawaii. That includes the purchase price plus shipping, handling, insurance, and customs duties. It does not include any sales tax you already paid in another state.4Hawaii Department of Taxation. Instructions for Form G-26 Use Tax Return
The casual sale exemption follows the vehicle across the water. If you bought the car from a private individual out of state rather than a business, report the landed value on Form G-26 and claim the casual sale exemption. No Use Tax is owed.4Hawaii Department of Taxation. Instructions for Form G-26 Use Tax Return
Gifts, Inheritance, and Other Tax-Free Transfers
A genuine gift is exempt from Use Tax regardless of the relationship between giver and recipient. The Form G-27 instructions describe the exemption as covering “a gift from another person” without limiting it to family members.2Hawaii Department of Taxation. Form G-27 Motor Vehicle Use Tax Certification To claim it, the recipient files Form G-27A, an affidavit in which both parties declare that no payment was made, no payment was promised, and no debt was assumed in connection with the transfer.5Hawaii Department of Taxation. Form G-27A Motor Vehicle Use Tax Certification
The person giving the vehicle may still have a federal gift tax filing obligation. For 2026, the annual exclusion is $19,000 per recipient.6Internal Revenue Service. Whats New Estate and Gift Tax A vehicle worth more than that does not trigger immediate tax, but the giver must file a gift tax return.
Vehicles acquired through inheritance are generally exempt from GET and Use Tax. The heir should submit a death certificate and proof of inheritance when registering the vehicle. As with gifts, the key factor is that no purchase transaction occurred.
Organizations exempt under Section 501(c)(3) of the Internal Revenue Code may be exempt from GET on vehicle purchases, provided the vehicle is used for religious, charitable, scientific, or educational activities rather than income-generating purposes.7Justia. Hawaii Code 237-23 – Exemptions, Persons Exempt The nonprofit must apply for the exemption using Form G-6 through the Hawaii Department of Taxation before the purchase.
A boundary worth flagging for service members: active-duty military stationed in Hawaii who are legal residents of another state get an exemption from Hawaii’s annual vehicle weight tax on one noncommercial vehicle, but that exemption does not cover GET on a Hawaii dealership purchase.8Justia. Hawaii Code 249-6.5 – Exemption for National Guard, Military Reserves, and Other Active Duty Military Personnel If a service member buys from a Hawaii dealer, the GET pass-on still applies unless another exemption covers the transaction.
The Annual Weight Tax Buyers Forget About
Beyond GET or Use Tax, every vehicle registered in Hawaii owes an annual weight tax. It’s easy to miss because it recurs every year, not just at purchase. The tax has a state portion and a county portion.
State weight tax rates for passenger vehicles:
- Up to 4,000 lbs: 1.75 cents per pound
- 4,001 to 7,000 lbs: 2.00 cents per pound
- 7,001 to 10,000 lbs: 2.25 cents per pound
- Over 10,000 lbs: $300 flat rate
County weight taxes stack on top and vary considerably. Honolulu charges 7.0 cents per pound for passenger vehicles, Maui charges 3.5 cents, Kauai charges 2.0 cents, and Hawaii County charges 1.25 cents. For a 3,500-pound sedan, the combined annual weight tax ranges from roughly $104 in Hawaii County to about $306 in Honolulu.
You’ll also pay a vehicle registration fee and a safety inspection fee (currently $25.75 for cars and trucks), and you must show proof of no-fault insurance before the county will issue registration.
Penalties for Late Payment or Failing to File
If you owe Use Tax and don’t pay on time, the penalty is 5% of the unpaid tax per month, capped at 25%. Interest accrues on top of that at two-thirds of one percent per month (8% annualized) until the balance is paid.9Hawaii Department of Taxation. General Excise Tax Information Those charges compound quickly on a vehicle purchase.
If you fail to file Form G-27, the state can assess Use Tax based on the vehicle’s fair market value rather than the purchase price, which may raise the amount owed. Intentional tax evasion can result in criminal charges under Hawaii law.
Registration violations carry their own consequences. Driving a vehicle with delinquent registration taxes on public roads is punishable by a fine of up to $500.10Hawaii Department of Taxation. Hawaii Revised Statutes Chapter 249 – County Vehicular Taxes Unregistered vehicles may also be impounded, adding towing and storage fees to the total.