Hawaii collects a 4.712% state sales tax rate on the purchase of all vehicles, for Honolulu County (Oahu Island). There is also a 4.166% "maximum visible pass on rate." Car purchases in Hawaii may be subject to other fees like registration, title, and plate fees. Hawaii applies tax to the new car price before the trade-in deduction. For example, if a new car is $35,000 and the trade-in is $7,000, 4% tax applies to the $35,000.
A private car sale in Hawaii is considered a "casual sale" and is not subject to sales tax. However, Hawaii charges an excise tax on cars based on weight, starting at 1.75 cents per pound.
To register an imported car in Hawaii, you need:
- Title
- Bill of sale
- Safety check
- Weight certificate
- Applicable taxes and fees
The state general sales tax rate of Hawaii is 4%. Localities may levy additional sales tax up to 0.5%. The average combined rate in Hawaii is 4.413%.
The Tax-Rates.org Hawaii Sales Tax Calculator is a tool that can quickly calculate local and state sales tax. Enter the five-digit zip code to calculate the sales tax due. Special rates may apply for different types of purchases.
To include the local tax rate in your calculation, adjust the rate in the Sales Tax field, as the default does not account for local rates. To calculate sales tax, multiply the taxable value by the applicable sales tax rate. For example, for a $100 sale, the calculation would be $100 x 4.3759% (average sales tax rate).
All businesses with taxable sales in Hawaii must register and remit sales tax. Service providers involved in taxable sales must also register.
New Hampshire, Oregon, Delaware, Montana, and Alaska do not charge sales tax. If you buy and register a vehicle in one of these states, you can avoid paying sales tax. Thirty-eight other states collect both state and local sales tax. Five states – Alaska, Montana, New Hampshire, Delaware, and Oregon – have no sales tax.
When it comes to leasing, monthly payments will include sales tax. For example, a $500 lease payment with a 6% tax rate would result in $30 tax, making the total $530 monthly. Remember, sales tax is based on the state of registration, not the state of purchase.