Hawaii Liquor Licenses by County: Honolulu $1,800 Restaurant, Hawaii County $600, Kauai $480, 30% Food Rule and Public Hearings
Hawaii Liquor Licenses by County: Honolulu $1,800 Restaurant, Hawaii County $600, Kauai $480, 30% Food Rule and Public Hearings
If you plan to serve alcohol in a restaurant in Hawaii, the first thing to understand is that there is no state liquor license. Every Hawaii liquor license is issued by a county liquor commission or department under Hawaii Revised Statutes (HRS) chapter 281. Your Hawaii liquor license cost, your food sales rules and your approval timeline all depend on which county your restaurant is in. This guide compares the costs and requirements for a general restaurant license across Honolulu, Hawaii County, Maui and Kauai.
This article is informational content, not legal or tax advice. Fee schedules and county rules change, so confirm every figure with the issuing agency before you sign a lease or buy equipment.
Why Hawaii has no state liquor license
Hawaii does not issue one statewide liquor license. Four county liquor commissions or departments do, and each sets its own application process, annual fee and food sales rules. Hawaii has four counties and no incorporated cities, so there is no separate city-level liquor license to look for. Your county decides which agency you deal with, and that agency decides almost everything else about your application.
A liquor license also does not replace your other registrations. You still need to form or register your business entity, obtain a General Excise Tax (GET) license and, for food service, deal with the state Department of Health. Plan all of these together rather than one at a time.
Restaurant license cost by county
The table below shows the annual fee for a general restaurant license, the application fee where it has been published, the food sales minimum and whether the county uses a public hearing. Where a figure is not published in the sources we could confirm, the table tells you which office to contact.
| County | Annual fee, general restaurant | Application fee | Food sales minimum | Public hearing |
|---|---|---|---|---|
| Honolulu | $1,800 (fee sheet revised 11/2021) | Check with the Honolulu Liquor Commission | 30% of gross revenue | Check with the Honolulu Liquor Commission |
| Hawaii County | $600 | $50 plus a $2.50 online fee | Check with the Department of Liquor Control | Yes |
| Maui | $600 basic fee plus a percentage fee on gross liquor sales | $50 filing fee, credited to the license | 30% of gross revenue | Check with the Maui County liquor commission |
| Kauai | $480 | $100 plus a $5 online fee | 35% of gross revenue | Yes |
The Honolulu annual fee comes from a fee sheet revised in November 2021. It is the figure most likely to be out of date, so ask the Honolulu Liquor Commission for the current schedule before you build a budget.
What the first year can cost
Counting the annual fee and application fee together, a Hawaii County applicant should expect about $652.50 in county charges before any other costs ($600 plus $50 plus the $2.50 online fee). A Kauai applicant should expect about $585 on the same basis ($480 plus $100 plus the $5 online fee). For Honolulu, add the application fee the commission confirms to the $1,800 annual fee. These totals assume the application and annual fees are billed as separate items, so confirm the billing structure when you apply.
Maui is the hardest county to estimate. Its $600 basic fee is only part of the cost because the percentage fee on gross liquor sales rises or falls with your sales. Maui also credits its $50 filing fee to the license, so ask the Maui County liquor commission how that credit applies to your first year.
The food sales rule: 30 percent in Honolulu and Maui, 35 percent in Kauai
Each county requires a restaurant to earn a minimum share of its gross revenue from food. In Honolulu and Maui, food must be at least 30 percent of gross revenue. Kauai sets a higher bar at 35 percent. Hawaii County's food minimum is set by the Department of Liquor Control, so confirm the current percentage with that office before you finalize your menu and bar program.
The rule matters most for bar-forward concepts. A lounge with a small kitchen can fail the test even if it serves food every day, because the test looks at the ratio of food revenue to total gross revenue. Track food and liquor sales separately from your first day of operation. Your point of sale system should split them, and your accountant should be able to produce a regular report that shows the ratio. Waiting until the end of the year to find out you are short is the most expensive way to learn this rule.
Public hearings in Hawaii County and Kauai
Hawaii County and Kauai process liquor license applications through a public hearing. The county notifies owners within 500 feet of the proposed location, so your neighbors will learn about your application. Plan for a timeline of three months or more from application to license. Do not sign a lease or set an opening date that assumes the license will arrive quickly.
Before you commit money to a space, check the parcel and the 500 foot radius, and find out whether there are schools, churches, residences or other businesses that could draw objections. Consider meeting nearby owners and describing your hours, noise controls and food-first menu before the hearing. We cannot predict how any hearing will go, but a clear plan is easier to defend than an improvised one.
The public hearing requirement described above applies to Hawaii County and Kauai. Confirm the process for Honolulu and Maui with their commissions, because it may differ.
Other state registrations you will need
Hawaii has no general statewide business license. What nearly every business does need is a General Excise Tax (GET) license from the Hawaii Department of Taxation. It is a one-time $20 fee, applied for on Form BB-1 or through Hawaii Tax Online. The license stays active until it is closed, surrendered or revoked. Processing is immediate in person, 5 to 7 business days through Hawaii Tax Online, and 4 to 6 weeks by mail.
GET is levied on the business's gross receipts, not on the customer, because Hawaii has no sales tax. The most common rate for retail goods and services is 4.5 percent, which is the 4 percent state rate plus a 0.5 percent county surcharge. Ask your accountant which rate applies to your food and beverage sales.
If you manufacture, wholesale or operate as a brewpub, you also need a state liquor tax permit. The Department of Taxation's license table lists it at $2.50 a year. Confirm the current filing requirements with the Department of Taxation at tax.hawaii.gov.
If you form an LLC, the Articles of Organization (Form LLC-1) carry a $50 filing fee through the Business Registration Division of the Department of Commerce and Consumer Affairs. Register at Hawaii Business Express. The annual report costs $12.50 and is due by the end of the calendar quarter in which the entity registered. Hawaii has no franchise tax on LLCs.
Food service is handled by the state Department of Health, which issues food permits. Hawaii has no county health department, so do not look for one at the county level. If you hire employees, you must follow the Prepaid Health Care Act.
Step-by-step process
- Confirm your county. The location of your premises determines the liquor commission, so confirm the county before you spend money on a lease or design.
- Request the current application packet and fee schedule. Do not rely on older figures, including Honolulu's fee sheet from 2021.
- Check the food sales minimum for your concept. That is 30 percent in Honolulu and Maui, 35 percent in Kauai, and the Department of Liquor Control's figure for Hawaii County.
- Register your entity and obtain your GET license. Complete these before you open, and confirm the Form BB-1 or Hawaii Tax Online process with the Department of Taxation.
- Prepare for the hearing if your county requires one. In Hawaii County and Kauai, build the 500 foot notice and the three month timeline into your lease and opening plan.
- Secure your food permit and employer obligations. Work with the Department of Health on food service, and confirm that your payroll setup follows the Prepaid Health Care Act.
Questions to ask the commission before you apply
- What is the current annual fee, and is it billed once or on a schedule?
- How is the Maui percentage fee on gross liquor sales calculated, and what does it add in a typical year?
- Does my location require a public hearing, and how long should I expect the process to take?
- How is the food sales minimum measured, and what records should I keep from opening day?
- Does the county credit any filing fee toward the license, and how does that show up on the bill?
When to bring in a professional
A liquor license ties together zoning, lease terms, tax reporting and neighborhood relations, so a mistake in one area can delay the others. Talk with a Hawaii attorney who handles liquor licensing before you sign a lease, especially if you are in Hawaii County or Kauai and a hearing is likely. A CPA who understands GET can help you set up food and liquor sales tracking from the start, which is the simplest way to prepare for the food sales test.
For help with the business plan and the registration steps, the Hawaii Small Business Development Center offers advising for small business owners.
Disclaimer
This article is informational content, not legal or tax advice. Fees, percentages and procedures are based on the sources noted in this guide and may change. Confirm current requirements with the issuing liquor commission or department, the Hawaii Department of Taxation and a qualified attorney or CPA before you make decisions based on this information.