Hawaii Sales Tax Rate

If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Hawaii, the first step is visiting the tax department website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit. 

What Products and Services Are Subject to Sales Tax in Hawaii?

There is no sales tax in Hawaii. Instead, there is a general excise tax (GET), which is a tax imposed on businesses. Businesses generally pass the GET on to their customers.

Hawaii GET Rate

In Hawaii, wholesaling goods, manufacturing, producing, providing wholesale services, and business activities of disabled people are subject to an excise tax of 0.5%. Selling retail goods and services, renting, leasing real property, construction contracting, and earning commissions are subject to a GET of 4-4.5%. 

Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.

How to Register for Hawaii GET Tax

In Hawaii, register for GET by following the tax department’s detailed instructions for registration: 

1. Go to the Hawaii tax online website.
2. Fill out the registration form.
3. Pay the $20 fee.

Use our Sales Tax Calculator to calculate taxes and total purchase amount. 

Conclusion 

In Hawaii, and across the country, following tax laws is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.