A Comprehensive Guide to Sales Tax in Hawaii

Key Takeaways

• Hawaii does not have a traditional sales tax. Instead, it imposes a General Excise Tax (GET) on business gross receipts.
• Most business activities are subject to a 4% GET, with certain activities taxed at 0.5% or 0.15%, depending on the type of transaction.
• Counties may impose a county surcharge of up to 0.5% in addition to the 4% state GET rate.
• Effective January 1, 2026, medical and dental services provided to Medicare, Medicaid, and TRICARE patients are exempt from Hawaii GET.

Do You Need to Collect and Remit Sales Tax in Hawaii? 

Hawaii does not impose a traditional “sales tax” like most other states. Instead, the state uses the General Excise Tax (GET), a broad-based tax on gross receipts from business activities conducted in Hawaii.

If your business has nexus in Hawaii, you may be required to register, collect, and remit GET, even if you are located outside the state.

What Is The General Excise Tax (GET)?

The GET is a business tax on gross revenues from sales of goods, the provision of services, rentals, commissions, and more. While similar in structure to sales tax, there is a primary difference: who the tax is imposed on.

Sales tax is typically imposed on the consumer at the point of sale and collected by the seller. Alternatively, Hawaii’s GET is imposed on the business, not the customer. While businesses may choose to pass the GET on to customers as a separately stated charge, they are not required to do so. Businesses may also choose to absorb the tax as a cost of doing business.

GET Tax Rates

To allow businesses to fully recoup GET expenses when passing the tax on to customers, Hawaii permits a maximum pass-on rate of 4.712%, which is higher than the base tax rate.

What Is Exempt From GET?

Hawaii’s GET applies broadly, but a number of exemptions and deductions reduce the tax base. The state provides dozens of individual exemptions that together account for a significant share of total receipts excluded from tax.

Examples of common GET exemptions include:

• Qualifying receipts of nonprofit organizations
• Subcontract deductions (payments made by contractors to subcontractors)
• Sales to the federal government and its agencies
• Certain food purchases made with SNAP or WIC benefits

Beginning January 1, 2026, Hawaii expanded its GET exemption to include healthcare-related goods and services paid for by Medicare, Medicaid, or TRICARE. This exemption also applies to patient payments such as copays and deductible amounts, provided the service is covered by one of these programs.

This change helps address inconsistencies in the taxation of medical services and reduces GET burdens on healthcare providers across the state.

Do You Have Sales Tax (GET) Nexus in Hawaii? 

Like sales tax, Hawaii imposes nexus standards for its General Excise Tax. Nexus determines whether your business is required to register, collect, and remit GET.

Physical Sales Tax Nexus

You have physical nexus in Hawaii if your business has a tangible presence in the state, including:

• An office or retail location
• Inventory stored in a warehouse or fulfillment center
• Employees, contractors, or representatives based in Hawaii

Any physical presence in the state automatically triggers GET obligations.

Economic Sales Tax Nexus

Hawaii also enforces economic nexus for GET. You establish nexus if, in the current or prior calendar year, your business has either:

• $100,000 or more in gross revenue sourced to Hawaii, or
• 200 or more separate transactions in Hawaii

Once either threshold is met, an out-of-state business must register and comply with Hawaii GET requirements even without a physical presence.

Are Marketplace Facilitators Required to Collect and Remit Sales Tax in Hawaii? 

Yes. Under Hawaii law, marketplace facilitators are treated as the sellers for GET purposes. These platforms are responsible for collecting and remitting GET on taxable sales they facilitate on behalf of third-party sellers.

It’s important to note that marketplace sales still count toward economic nexus thresholds. If you sell through multiple channels, all Hawaii sales must be included when determining whether you have nexus—even if the marketplace handles GET collection for those transactions.

What Platforms Are Marketplace Facilitators?

Common marketplace facilitators include:

• Amazon    
• eBay    
• Etsy
• Shopify Shop App
• Walmart Marketplace 

Filing Hawaii General Excise Tax (GET)  

Do you need to start collecting Hawaii GET and don’t know where to get started? Follow these steps to stay compliant: 

Need help with Hawaii sales tax compliance?
SalesTaxSolutions.US specializes in Hawaii GET, TAT, and nexus analysis so you stay compliant and avoid penalties.

When Are General Excise Tax Returns Due in Hawaii? 

Your GET filing frequency depends on how much tax your business owes during the year. Hawaii assigns one of four filing schedules:

• Monthly
• Quarterly
• Semi-annually
• Annually

Regardless of filing frequency, all GET taxpayers must file an Annual Reconciliation return.