Overview
The state of Hawaii levies a General Excise Tax (or GET) on business revenues.
General Excise Tax Basics
- The GET rate ranges from 4-4.5%, with some paying 0.5%. The rate varies by island.
- Businesses must file GE tax forms to claim exemptions and deductions on federal taxes.
- For businesses earning over $4,000 in GE tax yearly, monthly filings are required; otherwise, file quarterly or semi-annually.
Licensing and Taxation
- To conduct business in Hawaii, a GET license is mandatory, marked by IDs starting with "GE."
- The General Excise tax applies to all gross income from business activities in Hawaii.
- Both GET and Hawaii income tax must be paid, with income tax calculated on net profit.
Filing Procedures
- Complete the BB-1 packet and pay a one-time $20 fee to apply for a Hawaii GE license.
- Businesses can file and pay GE tax online through the DOTAX website.
- Use Schedule GE when claiming exemptions on form G-45, suited for businesses of all sizes.
Additional Information
- Government websites like tax.hawaii.gov offer e-filing resources for various tax forms.
- Form G-49 summarizes annual tax activities and should reconcile with periodic G-45 returns.
- Taxpayers can seek further assistance by contacting tax authorities for help and guidance.