Hawaii has a general excise tax (GET) instead of a sales tax. The GET is levied on businesses, not consumers. Most Hawaii businesses pay the GET, whether they sell products or provide services. The GET applies to business gross income. Prescription medications are exempt. Some services are taxable.
Filing Requirements
Businesses with over $4,000 in annual GET must file monthly returns. Returns are due the 20th of the month after the filing period ends. For example, if the filing period ends January 31, the return is due February 20. Businesses can file returns electronically, by mail, or in person.
Starting a Business in Hawaii
To start a Hawaii business, apply for a tax ID number by filing Form BB-1 online, by mail, in person, or at a tax office. You will receive your tax ID immediately if applying in person, or in 4-6 weeks by mail. Then register for a GET license. Most Hawaii businesses pay GET at a 4% tax rate.