If you’re doing business in the Aloha State, understanding the Hawaii GET tax is non-negotiable—it’s not a sales tax, but a sweeping excise tax that applies to nearly every transaction, from retail and services to rent and commissions. Whether you’re a local entrepreneur or an out-of-state seller, the rules are unique, and the stakes are high.
In this guide, we’ll walk you through who needs to register, how to calculate and file, what exemptions apply, and how to stay compliant year-round. And if navigating it all feels overwhelming, Hands Off Sales Tax (HOST) is here to take the stress off your plate.
What Is General Excise Tax (GET)?
Hawaii’s General Excise Tax (GET) is not a traditional sales tax—it’s a gross receipts tax applied directly to businesses on their total income, not to consumers on individual transactions. This means businesses owe GET whether or not they make a profit, and regardless of whether they pass the cost on to customers.
GET applies to nearly all business activities in Hawaii, including retail, services, commissions, construction, leases, and even interest income. Unlike sales tax, it’s levied on the business itself, not collected separately at the point of sale.
Current GET Rates:
- Standard Rate: 4% across the state
- County Surcharge: +0.5% in Oahu, Hawaii (Big Island), and Kauai, raising the total to 4.5% in those counties
- Wholesale Rate: 0.5% applies to business-to-business sales or intercompany transfers
Tax-on-Tax Effect:
Hawaii’s GET is also subject to a “tax-on-tax” calculation, where the gross receipts include the GET itself. For example, if you charge $100, you must calculate GET as a portion of that total, not as an add-on—meaning your effective rate is slightly higher than it appears.
This structure makes accurate accounting essential to avoid underpayment.
Who Must Register for GET
In Hawaii, any person or business “engaging in business” must register for General Excise Tax (GET). This includes selling goods, providing services, renting property, earning commissions, collecting dues, or receiving professional fees—whether as a full-time business or occasional side gig.
What Counts as “Engaging in Business”?
According to the Hawaii Department of Taxation, you’re considered engaged in business if you conduct any commercial activity for income in the state, including:
- Retail or wholesale of tangible goods
- Service-based businesses (e.g., salons, consultants, contractors)
- Rentals and leases (real or personal property)
- Professional services (lawyers, doctors, accountants)
- Commission income (e.g., real estate agents, brokers)
Physical or Economic Presence
You must register for GET if you:
- Have a physical presence in Hawaii (store, office, warehouse, employees), or
- Exceed $100,000 in gross receipts or 200+ transactions annually from Hawaii-based customers (Economic nexus threshold per HAR §18-237-2.95)
Even out-of-state sellers (including eCommerce platforms) must comply once they hit these thresholds.
Exemptions & Special Cases
Some organizations and income types are partially or fully exempt but still must register for GET, including:
- Nonprofits (eligible for exemption but must apply)
- Farmers and fishing operations (may qualify for reduced rates)
- Certain intercompany or wholesale sales (0.5% rate)
Always consult the Hawaii Tax Rules to confirm your status.
How to Register for GET
Before collecting a single dollar in Hawaii, businesses must register for General Excise Tax (GET). The process is straightforward but depends on how you apply and whether you operate in multiple locations.
Step-by-Step Registration Options
There are two main ways to register:
- Online via Hawaii Business Express (HBE)
- Visit the HBE Portal
- Create an account and complete the online Form BB-1
- Select “General Excise Tax License” during the application
- Pay the $20 one-time registration fee via card or eCheck
- You’ll receive your license number instantly
- Paper Form BB-1 (recommended for complex or multi-location businesses)
- Download from Hawaii Department of Taxation
- Submit by mail or walk-in to any district tax office
- Processing typically takes up to 5 business days
For multi-location businesses, additional GET licenses may be needed depending on operational setup.
GET License vs. Other Licenses
A GET license is separate from:
- Transient Accommodations Tax (TAT) license (for short-term lodging)
- Withholding Tax license (for employers)
You can register for all applicable licenses during the same session on Hawaii Business Express.
GET Filing Frequency & Payment Rules
Once registered for the Hawaii GET tax, businesses must stay compliant with regular filings—even if no tax is due. Your filing frequency depends on how much GET you expect to pay annually.
Filing Frequencies: Form G-45
Hawaii assigns filing frequency based on projected tax liability:
- Monthly if you expect to pay more than $4,000/year
- Quarterly if you expect to pay $2,000–$4,000/year
- Semi-annual if your liability is less than $2,000/year
All filings are made using Form G-45 (Periodic General Excise/Use Tax Return). Filings are due on the 20th day of the month following the period’s end, and zero filings are mandatory even when there are no sales.
County Surcharge Reporting: Form G-75
If you do business in more than one county, you must allocate your GET payments correctly using Form G-75.
Annual Summary: Form G-49
At the end of the year, you’ll file a reconciliation return using Form G-49, which summarizes all GET activity. Even if you’ve paid all GET due via periodic filings, G-49 is still required.
Penalties
Failure to file or pay on time can result in:
- A 5% penalty per month (up to 25%)
- Interest at 8% per year
GET Exemptions, Deductions & Credits
While the Hawaii GET tax applies broadly, there are notable exemptions and deductions that businesses can leverage to reduce their liability. Understanding these categories—and how to report them—is key to staying compliant and avoiding overpayment.
Common Exemptions
Hawaii provides specific GET exemptions for:
- Food and medical sales paid for with SNAP or WIC benefits
- Certain agricultural products
- Wholesale transactions (subject to the 0.5% GET rate instead of 4%)
- Sales outside of Hawaii or to out-of-state customers
- Digital products and services consumed outside Hawaii
- Insurance commissions and certain exported professional services
How to Claim Exemptions
Businesses must file Schedule GE (Form G-45/G-49) to itemize any exemptions or deductions. You must indicate:
- Exemption code from the GE instructions
- Gross income and deducted amount
- Detailed description of each exempt transaction
Adjustments & Amended Returns
If you missed exemptions in a previous filing, you can file an amended return using a corrected G-45 or G-49. Ensure all deductions are properly coded and documented to avoid audit risk.
Recordkeeping & Audit Readiness in Hawaii
Proper documentation is essential for GET compliance in Hawaii, especially if you’re ever audited by the Department of Taxation. The state recommends maintaining all tax-related records for at least four years, though seven years is ideal for more robust protection.
Required Documentation
Businesses should keep:
- Filed forms G-45 (periodic GET returns) and G-49 (annual reconciliation)
- Invoices and receipts tied to each transaction
- Schedule GE filings for exemptions or deductions
- Form G-75 if distributing county surcharges across islands
Best Practices
- Digital storage: Use cloud-based systems to store scanned forms, receipts, and schedules.
- Centralized tracking: If operating in multiple counties, reconcile G-75 allocations consistently.
- Audit prep: Organize by filing period and exemption type to respond quickly if contacted by the state.
How HOST Simplifies Hawaii GET Compliance from Start to Finish
Hawaii’s GET system comes with its own set of complexities—from layered county surcharges to unique “tax-on-tax” rules and strict filing schedules. HOST is built to take this burden off your plate, making compliance smooth and stress-free from day one.
Complete Registration Support
HOST helps you get registered correctly the first time, avoiding costly errors that can trigger penalties down the line.
Accurate & Timely Filings
Whether you file monthly, quarterly, or annually, HOST ensures every required return is submitted on time—including zero filings when needed.
Exemptions & Deductions Made Easy
If your business qualifies for deductions or adjustments, HOST helps apply them accurately and manages amended returns when necessary.
Audit-Ready Recordkeeping & Defense
HOST keeps all your tax documentation organized, digitally stored, and retained according to best practices. And if you’re ever audited, HOST doesn’t just prep your files—we stand by you with full audit defense services.
From registration to returns, HOST makes Hawaii GET compliance feel less like a burden and more like just another thing handled.
Final Word: Mastering GET Without the Headaches
Navigating Hawaii’s General Excise Tax (GET) isn’t just about checking a box—it’s about understanding a system that touches nearly every transaction your business makes. From multi-island surcharges to tax-on-tax quirks, even small missteps can lead to big compliance issues.
That’s where HOST comes in.
With full-service registration, accurate filings, exemption support, and audit-ready documentation, HOST makes GET compliance seamless. Whether you’re a local startup or an expanding e-commerce brand, we tailor solutions to fit your business needs. Don’t guess—get it right from the start. Reach out to HOST for a consultation today.
