Understanding Hawaiʻi General Excise Tax (GET)
Hawaiʻi doesn’t have a traditional sales tax. Instead, nearly every business operating in the state pays the General Excise Tax (GET) — a tax on the privilege of doing business here. If you’re starting or running a business in Hawaiʻi, understanding how GET works is one of the most important parts of staying compliant. Here’s what you need to know.
What GET Actually Is
The GET is a tax on gross business income, not net profit. It applies to almost every business activity in the state — retail sales, services, contracting, rentals, wholesaling, and commissions all fall under it. This is a key difference from a typical sales tax:
- A sales tax is charged to the customer on a purchase.
- The GET is legally owed by the business itself, on its gross receipts, regardless of whether the business chooses to pass the cost on to customers.
Because it applies to gross income rather than profit, GET is due even in years when a business isn’t profitable.
GET Rates
The base GET rate is 4%. Currently, all four Hawaiʻi counties impose a 0.5% county surcharge on activities subject to the 4% rate, producing an effective rate of 4.5% for those activities.
Because businesses are allowed to pass the tax through to customers, and doing so technically creates additional taxable income, the state permits a maximum “pass-on” rate of 4.712% to account for the tax-on-tax effect. This is why you’ll sometimes see prices marked up by 4.712% rather than a flat 4% or 4.5%.
A reduced rate of 0.5% applies to wholesale transactions, and other special rates apply to specific activities such as insurance commissions.
Registering for a GET License
Before conducting business in Hawaiʻi, you must obtain a GET license. To register:
- Complete Form BB-1, the State of Hawaiʻi Basic Business Application.
- Submit it online through Hawaiʻi Tax Online (recommended), by mail, or in person at a district tax office.
- Pay the one-time registration fee of $20.
You register once as a taxpayer — not separately for each business activity. If you operate more than one location or use a trade name/DBA, you’ll need an additional branch license (Form G-50) for each location; there’s no extra fee for a branch license.
Once issued, your GET license and Hawaiʻi Tax ID stay active until you close, surrender, or have it revoked for abandonment — there’s no periodic renewal requirement for the license itself.
Filing Your GET Returns: Form G-45 and Form G-49
GET compliance involves two different forms:
Form G-45 (Periodic Return) reports and pays your general excise, use, and county surcharge taxes for a shorter period. Filing frequency depends on your annual GET liability:
| Annual GET Liability | Filing Frequency |
|---|---|
| More than $4,000 | Monthly |
| $4,000 or less | May file quarterly |
| $2,000 or less | May file semiannually |
G-45 returns are generally due on the 20th day of the month following the close of the filing period. For example, a monthly return for January is due February 20; a quarterly return for Q1 (Jan–Mar) is due April 20; and a semiannual return for January–June is due July 20. If the due date falls on a weekend or holiday, the deadline moves to the next business day.
Form G-49 (Annual Return and Reconciliation) is filed once a year to reconcile your gross receipts, exemptions, and taxes for the full tax year. It is due on the 20th day of the fourth month following the end of your tax year; for calendar-year filers, that is generally April 20. It must be filed even if you also filed periodic G-45 returns throughout the year — and even if no tax is owed.
If your total GET liability for the year does not exceed $100, you are not required to file periodic G-45 returns, but you must still file the annual G-49.
Unless the $100 annual-liability exception applies, a G-45 return must be filed for every required filing period, even with zero gross income — in that case, enter zero on each applicable line and file on time.
Filing Methods
Returns can be filed:
- Online through Hawaiʻi Tax Online (hitax.hawaii.gov) — the state’s recommended method
- By paper, mailed to the Department of Taxation, when paper filing is permitted
Taxpayers whose annual GET liability exceeds $4,000 are generally required to file G-45 and G-49 returns electronically.
Common Points of Confusion
- GET is not the same as a sales tax. It’s calculated on your gross receipts and is your liability as the business, even if you build the cost into your prices.
- The tax-on-tax pass-on rate (4.712%) is a ceiling, not a requirement. Businesses can choose to absorb GET instead of passing it on, or pass on less than the maximum.
- Wholesale vs. retail matters. Selling to a reseller who will resell the goods generally qualifies for the reduced 0.5% wholesale rate if the proper resale certificate (Form G-17) is obtained; selling directly to the end consumer is taxed at the full rate.
- Filing is still required even with no income or no tax due. Unless the $100 annual-liability exception applies, missing a required periodic return can create compliance issues.
Staying Compliant
Because GET touches nearly every dollar of revenue rather than just profit, it’s worth building GET into your bookkeeping and pricing from day one rather than treating it as an afterthought at filing time. Keeping track of your filing frequency, calendar deadlines, and any wholesale/resale documentation will help you avoid penalties and interest on late or inaccurate returns.
Where to Get Help
For registration, forms, current rates, and filing questions, contact the Hawaiʻi Department of Taxation directly or visit its General Excise Tax information page. A tax professional familiar with Hawaiʻi’s GET system can also help structure your pricing and bookkeeping correctly, especially if your business operates across multiple counties, where sourcing and reporting rules can become more complex.
This article is for general informational purposes and is not a substitute for current Department of Taxation guidance or advice from a licensed tax professional. GET rates, thresholds, and forms are periodically updated — always confirm current figures on tax.hawaii.gov before filing.