Late Filing and Payment Penalties
Hawaii charges a late filing penalty of 5% per month up to 25% of the tax reported. A 20% penalty of unpaid tax is charged. After 60 days of non-payment, unpaid tax or penalty is charged 1% interest per month.
Tax Deadlines and Extensions
The standard deadline is April 20th for resident and nonresident returns. An extension to October 20th can be requested. Refunds generally take 9-10 weeks after filing, plus two more weeks for paper checks.
The general excise tax (GET) applies to business activity gross income and has specific considerations for sales tax exemptions and certain types of income.
- Independent contractor income and rental payments are subject to GET.
- Prescription medicine is tax exempt.
- Digital goods or services are taxable.
Short-term rental hosts must register for GET and transient accommodations tax licenses.
Additional Notes and Extensions
By never filing taxes, you might be convicted of tax evasion. There is no penalty if a refund is due. File a return as soon as possible to reduce penalties and interest.
Hawaii automatically grants extensions up to 6 months if you have paid 90% of actual tax due. Pay remaining tax due when return is filed for extension to be valid.
Members of the military on duty outside of Hawaii may qualify for special filing extensions. Additional 4-month extension can be requested with Form N-200V.