Honolulu has no sales tax. Hawaii instead charges a General Excise Tax on businesses, and in Honolulu that combined state and county rate is 4.5%. Because almost every business passes the tax on to customers, and because the passed-on amount is itself taxable, the figure you’ll actually see added to a receipt is 4.712%. A $100 purchase typically rings up at $104.71.
Why the Receipt Says 4.712% Instead of 4.5%
The GET is not a sales tax. A sales tax is charged to the buyer and collected by the business for the government. The GET is a tax on the business itself for the privilege of operating in Hawaii, calculated on gross income before any expenses come out.1State of Hawaii Department of Taxation. An Introduction to the General Excise Tax The business owes it whether or not it charges the customer anything extra.
Most businesses do pass it on, and that’s where the 4.712% comes from. When a store adds the GET to your bill, that added amount becomes part of the store’s gross income, which means the store owes GET on it too. To end up with $100 in its pocket after paying the tax, the business has to charge a little more than a flat 4.5%:
- Base price: $100.00
- Pass-on amount at 4.712%: $4.71
- Total you pay: $104.71
The business then reports $104.71 as gross income and pays $4.71 in GET, keeping exactly $100. The 4.712% figure is the maximum pass-on rate allowed in Honolulu and has been in effect since 2007.2Department of Taxation. General Excise Tax (GET) Information
The 4.5% rate is itself two layers. The statewide base is 4.0% on retail sales, services, contracting, rental income, and commissions.3Justia. Hawaii Code 237-13 – Imposition of Tax The City and County of Honolulu adds a 0.5% surcharge on top, in effect through December 31, 2030.4Department of Taxation. County Surcharge on General Excise and Use Tax
If a business chooses not to pass the GET on, you simply pay the listed price and the business absorbs it. When you want to know what’s happening on a given purchase, look for a separate GET line on the receipt.
What Gets Taxed That You Might Not Expect
The GET reaches further than a typical mainland sales tax. It applies to goods, professional services, construction work, rental income, commissions, and business interest income.1State of Hawaii Department of Taxation. An Introduction to the General Excise Tax Hiring a plumber, paying a consultant, renting a condo, and buying electronics all generate GET for the business involved. Most mainland states exempt services; Hawaii does not.
Groceries catch newcomers off guard. Roughly 30 states on the mainland exempt grocery purchases, but Hawaii taxes food at the register at the same 4.5% rate as everything else. Lower-income residents may qualify for a Food/Excise Tax Credit when filing their state income taxes, but the tax still shows up when you check out.
A handful of things are not subject to GET at all, including wages and salaries, life insurance proceeds paid on the death of the insured, workers’ compensation payments, compensatory damages from personal injury claims, gifts, and inherited property.5Justia. Hawaii Code 237-24 – Amounts Not Taxable
Online and Mail-Order Purchases
Buying from a mainland retailer that doesn’t collect Hawaii tax does not get you out of paying. Hawaii imposes a use tax at the same 4.5% rate on goods, services, and intangibles brought into Honolulu for personal or business use.6State of Hawaii Department of Taxation. Tax Facts 95-1 – Use Tax
The use tax is based on the “landed value” of what you import, which means the purchase price plus shipping, handling, insurance, and any customs duty. Sales tax already paid to another state is subtracted.7State of Hawaii Department of Taxation. An Introduction to the Use Tax Order a $500 laptop from an Oregon retailer with $30 shipping, and because Oregon has no sales tax to credit against, use tax applies to the full $530.
Hotels and Short-Term Rentals
If you’re booking a hotel room or a vacation rental in Honolulu, the GET is only part of what hits the folio. Stays of fewer than 180 consecutive days are also subject to the Transient Accommodations Tax. The state TAT rate increased to 11% effective January 1, 2026, and stays there through December 31, 2030.8Department of Taxation, State of Hawai’i. Department of Taxation Announcement No. 2026-01 Honolulu has adopted a county TAT of 3% on top, bringing the combined TAT to 14%.
The 14% TAT stacks on the 4.5% GET. A $200-per-night Waikiki rental picks up roughly $37 in combined taxes each night. Long-term rentals of 180 days or more are exempt from the TAT but still owe GET on the gross rent.9Department of Taxation. Renting Residential Real Property
Quick Reference
- Combined GET rate in Honolulu: 4.5% (4.0% state + 0.5% county surcharge)
- Maximum pass-on rate shown on receipts: 4.712%
- Use tax on items brought in from out of state: 4.5% of landed value, minus any sales tax paid elsewhere
- Short-term lodging (under 180 days): 4.5% GET + 14% TAT
- Groceries: taxable at 4.5%
- Services (plumber, consultant, contractor): taxable at 4.5%