Hawaii General Excise Tax (GET): 4% State Rate, 0.5% County Surcharge, 4.712% Pass-On, $20 License and Filing Dates
Hawaii General Excise Tax (GET): 4% State Rate, 0.5% County Surcharge, 4.712% Pass-On, $20 License and Filing Dates
If you sell goods or services in Hawaii, you will deal with the General Excise Tax, almost always called GET. Hawaii has no sales tax. Instead, GET is a tax on the business, measured by its gross receipts, and it reaches nearly every business that earns income in the state. This guide covers the rates, the one-time $20 license, the filing schedules, and the due dates that catch new owners off guard.
Important: This article is informational content, not legal or tax advice. Rates, thresholds, and deadlines can change. Confirm current details with the Hawaii Department of Taxation (DOTAX) before you file or set prices. If you run more than one type of business activity, have significant receipts, or have a prior filing problem, consult a qualified CPA or tax attorney.
What GET Is and Who Pays It
GET is imposed on the gross income or gross receipts of a business. The seller owes it. The customer does not pay it directly, which is why Hawaii has no sales tax to collect at the register. Whether you show the tax on an invoice or absorb it into your prices, the obligation is the same: GET is calculated on what your business receives.
GET applies regardless of how the business is organized. A sole proprietorship, partnership, corporation, or LLC files GET returns if it has taxable activity. Hawaii has no franchise tax on LLCs. Your entity filings with the Business Registration Division (BREG), such as the LLC annual report, are separate from your GET obligations, which DOTAX administers.
GET Rates at a Glance
Two numbers matter most for a typical retail or service business: the 4% state rate and the 0.5% county surcharge that sits on top of it. Hawaii sets different rates by type of business activity (HRS 237-13), as shown below.
| Business activity | Rate |
|---|---|
| Retail sales, services, rentals, and contracting | 4.0% state rate, plus 0.5% county surcharge, for 4.5% total |
| Wholesaling, manufacturing, and producing | 0.5% |
| Insurance commissions | 0.15% |
If your business has more than one activity, each stream of receipts may carry a different rate. Ask DOTAX how to separate receipts for reporting before your first return, because mixing rates is one of the most common reporting errors.
The County Surcharge
The 0.5% county surcharge is added to the 4% state rate only. It does not apply to the 0.5% wholesale rate or the 0.15% insurance commission rate. All four counties have adopted it:
- Honolulu County: in effect since 2007
- Kauai County: in effect since 2019
- Hawaii County: 0.25% in 2019, rising to the full 0.5% in 2020
- Maui County: in effect since January 1, 2024
Each county surcharge runs through December 31, 2030. Confirm with DOTAX which county's surcharge applies to a given sale, and whether any change after that date would affect your business.
The 4.712% Visible Pass-On Rate
The combined statutory rate for retail activity is 4.5%. Many owners want to show the tax as its own line on the receipt. If you do, the maximum visible pass-on rate is 4.712%.
The number looks odd because the tax is owed on the total you collect, including any tax you add. Charging 4.712% on top of a price covers the 4.5% GET on the grossed-up amount. For example, on a $100 invoice, a 4.712% pass-on adds $4.71 for a total of $104.71. GET at 4.5% on $104.71 is about $4.71, so the added line covers the tax you owe.
Passing the tax on is a pricing choice, not a requirement, and you owe GET on your full receipts either way. Before you build a pass-on line into your invoices, confirm the presentation rules with DOTAX. Then make sure your point-of-sale or accounting software applies the correct rate for each activity.
The $20 GET License
Hawaii has no general statewide business license, and the counties do not issue a general business license either. The GET license is the one universal state registration most businesses need. It is a one-time $20 fee under HRS 237-9, and it stays active until you close the business, surrender the license, or it is revoked.
You can apply on Form BB-1 or through Hawaii Tax Online. Processing times vary by method:
- In person: processed immediately
- Hawaii Tax Online: 5 to 7 business days
- By mail: 4 to 6 weeks
The GET license does not cover everything. Separate professional and vocational licenses, county permits, and industry-specific permits may also apply to your activity. Check each one with the agency that regulates your trade.
Penalties for Operating Without a License
Operating without a GET license can bring a fine of up to $500. Cash-based businesses face a fine of $500 to $2,000. The penalty may be waived for good cause, but do not plan around a waiver. Get the license before your first sale.
Filing Schedules and Due Dates
Your filing frequency determines how often you report and pay. Monthly is the default. Smaller businesses may qualify for less frequent filing by permit under HRS 237-30:
- Quarterly: available by permit if your total GET liability for the year will not exceed $4,000
- Semiannual: available by permit if your total GET liability for the year will not exceed $2,000
The director can revoke a permit. Track your expected GET liability through the year so a growing business does not keep filing on a schedule it no longer qualifies for.
| Filing schedule | Who qualifies | Periodic return due |
|---|---|---|
| Monthly | Default for all licensees | 20th of the following month |
| Quarterly | Permit, annual GET liability of $4,000 or less | April 20, July 20, October 20, and January 20 |
| Semiannual | Permit, annual GET liability of $2,000 or less | July 20 and January 20 |
| Annual return | Every license holder | April 20 |
For example, a monthly filer's return covering September is due October 20. Every license holder must file periodic and annual returns even in a period with no income, so a slow month still requires a return.
Late Filing Penalties
A late return carries a penalty of 5% per month, up to a maximum of 25%. A return that is five months late reaches the cap. Because a zero-income return is still a required return, filing on time costs nothing even when you owe no tax.
Common GET Mistakes
- Applying the 4.5% retail rate to wholesale sales. Wholesale receipts carry the 0.5% rate, and the county surcharge does not apply to them.
- Skipping zero-income returns. A business that had no receipts in a period still files.
- Confusing the BREG annual report with the GET annual return. They are separate filings with separate agencies and separate due dates.
- Letting a permit lapse unnoticed. A business whose expected GET liability grows past the quarterly or semiannual threshold should move to a more frequent schedule.
- Starting sales before licensing. The $20 license is cheap compared with the penalties for operating without one.
Step-by-Step: Setting Up GET
- Identify each business activity. Separate retail, wholesale, manufacturing, and insurance commission receipts, since each may carry a different rate.
- Apply for the GET license and pay the one-time $20 fee through Form BB-1 or Hawaii Tax Online.
- Choose a filing schedule. Start monthly unless you qualify for, and receive, a quarterly or semiannual permit.
- Calendar the 20th of each month, plus April 20 for the annual return.
- Decide whether to show GET as a separate line. If you do, the maximum visible rate is 4.712%.
- Keep receipts organized by activity and by county so you can support every return.
- File every return on time, including periods with no income.
How GET Fits With Your Other Filings
GET is one of several obligations for a new Hawaii business. Entity filings with BREG are separate. An LLC pays a $12.50 annual report fee, due by the end of the calendar quarter in which it registered. Corporations pay the same $12.50 fee under the same timing rule. No annual report is due in the year the entity registers. Neither report satisfies a GET return, and a GET return does not satisfy either report.
If you have employees, the Prepaid Health Care Act applies to your payroll separately. Also confirm whether your industry needs a professional license, a Department of Health permit, a Public Utilities Commission authority, a county liquor license, or a county planning approval before you open.
Official Resources
- Hawaii Department of Taxation, General Excise Tax: https://tax.hawaii.gov/get/
- Hawaii Department of Taxation home page: https://tax.hawaii.gov/
- DCCA Business Registration Division: https://cca.hawaii.gov/breg/
- Hawaii Small Business Development Center: https://hisbdc.org/
- SBA district page for Hawaii: https://www.sba.gov/district/hawaii
GET becomes manageable once you have the license, the correct rate for each activity, and a filing calendar in place. Confirm the details with DOTAX before you file, and bring in a CPA early if your receipts are large or your business mixes activities.