Hawaii Sales Tax Guide (2026): Rates, Nexus, Registration & Filing

Is SaaS taxable?

Yes.

What is the sales tax rate in Hawaii?

Hawaii doesn’t have a conventional sales tax. Instead it levies a General Excise Tax (GET) on the seller’s gross business income. Businesses are allowed to pass it on to customers, so in practice it looks like a sales tax at checkout. The base GET rate is 4% on retailing and most activities, with reduced rates of 0.5% on wholesaling, manufacturing, and producing and 0.15% on insurance commissions.

Counties may add a surcharge of up to 0.5%, bringing the top rate to 4.5% (for example, on Oahu). Because the GET also applies to the tax that’s passed on, the commonly used maximum pass-on rate on Oahu is about 4.712%. Check the county surcharge details on the Hawaii Department of Taxation site.

Do you have sales tax nexus in Hawaii?

Nexus is the connection that obligates your business to collect and remit Hawaii GET. You can establish it two ways — physically or economically. Either one is enough.

Physical nexus

You have physical nexus if you have a tangible presence in Hawaii, such as:

• A physical office, store, or warehouse in the state
• Providing services within Hawaii
• Business representatives or agents operating in the state
• Inventory stored in Hawaii

Economic nexus

Since July 1, 2018, out-of-state sellers have economic nexus if, in the current or previous calendar year, they have more than $100,000 in gross sales into Hawaii or 200 or more separate transactions with Hawaii customers. Either threshold triggers a duty to register, obtain a GET license, and collect.

What is taxable in Hawaii?

Hawaii’s GET is one of the broadest tax bases in the country: it applies to nearly all goods and services unless specifically exempted — including many services that are exempt in other states, plus digital goods and contracting. This breadth is the single biggest difference from a typical sales tax.

Is SaaS taxable in Hawaii?

Yes. Because the GET applies to virtually every good and service unless specifically exempted, SaaS and other digital products and services are taxable in Hawaii.

How is food taxed in Hawaii?

Groceries are taxable at the full GET rate — Hawaii does not exempt or reduce tax on food. (Lower-income residents may claim a separate refundable food/excise tax credit on their income tax, but that doesn’t change GET collection at the point of sale.)

How to register for a Hawaii sales tax permit

If you need to collect GET, you must register for a GET license. Taxually can handle this for you, or you can apply online through Hawaii Tax Online. The license costs $20 (other fees may apply depending on your activities).

Have ready: personal identification (SSN, address), business identification (EIN, address), your entity type, and your accounting period (calendar or fiscal) and method (cash or accrual).

How to collect sales tax in Hawaii

Hawaii is destination-based — apply the GET rate for the buyer’s location, which means adding the county surcharge where it applies (e.g., Oahu). Many sellers gross up the price to recover the GET (and the tax on that tax), which is why the effective Oahu pass-on rate is about 4.712%.

Filing and paying Hawaii sales tax

Your filing frequency depends on annual GET liability: monthly (more than $4,000), quarterly ($2,000–$4,000), semi-annual ($1,000–$2,000), or annual (less than $1,000). Periodic returns (Form G-45) are due the 20th of the month following the period, and an annual reconciliation return (Form G-49) is also required.

File and pay online through Hawaii Tax Online. Taxually’s software automates the full process.

Penalties for late or non-compliant filing

Failing to file or pay GET on time triggers these penalties:

• Late filing: 5% of the unpaid tax per month, up to 25%.
• Interest: 2/3 of 1% per month on unpaid tax and penalties.