Back to dashboard
Hawaii Tax Guide
Rooted in Hawaii 🌿

Hawaii —
the GET changes everything you think you know about taxes.

Hawaii has no sales tax — but the General Excise Tax applies to gross revenue, hits even unpaid invoices, and has unique federal deductibility most founders never claim. Hawaii also has the highest income tax rate in the US at 11%. This guide covers everything.

4.0–4.5%GET rate by island
11%Top income tax rate
$1,980Avg federal GET deduction
Apr 20State return deadline
Other state guides
Hawaii 🌿 California New York Washington Nevada Texas Florida Oregon
Hawaii's biggest tax trap: GET is owed on gross receipts — not profit. Even if a client doesn't pay you, you still owe GET on that invoice. Register with Hawaii DoTax before your very first sale.
4.5%
GET — Oahu
Honolulu county surcharge for rail transit. Most Oahu businesses pay this rate
4.0%
GET — neighbor islands
Maui, Big Island, Kauai, Molokai. Lower rate — no county surcharge
0.5%
GET — wholesale
Selling to licensed resellers only. Must obtain resale certificates from buyers
11%
State income tax top rate
Highest in the US — makes every deduction and retirement contribution extremely valuable
None
Sales tax
Hawaii has GET instead — fundamentally different from sales tax in how it works
4.166%
GET pass-through max
Maximum surcharge you can legally add to invoices to cover your GET cost
The tip most Hawaii founders miss: Every dollar of GET you pay is deductible on your federal income tax return. At the 22% bracket, $9,000 in annual GET = $1,980 back at tax time. Always claim it on Schedule A or as a business expense.
Why Hawaii's 11% income tax rate matters so much: At 11%, every deduction — home office, mileage, SEP-IRA, health insurance — saves you 11 cents on the dollar in state tax ON TOP of federal savings. A $20,000 SEP-IRA contribution saves $2,200 in Hawaii state tax alone. Deductions here are worth more than almost anywhere else in the country.

The General Excise Tax — everything you need to know

The GET is unlike any other business tax in the US. Most founders who move to Hawaii from another state are completely caught off guard by how it works. Here's the full picture.

What makes GET different from sales tax
1
GET is paid by the seller — not the buyerSales tax is collected from customers and remitted to the state. GET is a privilege tax on the business for the privilege of doing business in Hawaii. You owe it whether or not you collect it from your customers.
2
GET is on gross revenue — not profitIf you earned $200,000 in revenue with $180,000 in expenses, you owe GET on the full $200,000. On Oahu that's $9,000 in GET — even if your profit was only $20,000.
3
GET is owed even on unpaid invoicesA client doesn't pay you. In most states — no tax on uncollected revenue. In Hawaii — you still owe GET on that invoice. Build a GET reserve every month. Don't wait until filing to have the cash.The trap most founders fall into
4
You can pass GET to your clientsHawaii allows you to add a GET surcharge to invoices — maximum 4.166% on Oahu (4.167% neighbor islands). Collect it from clients, remit to the state. Your net GET cost = zero. Many Hawaii businesses don't know this is allowed.Most valuable GET strategy
5
GET is deductible on your federal returnEvery dollar of GET you remit to Hawaii DoTax is deductible as a business expense on your federal return. At the 22% bracket, $9,000 in GET = $1,980 in federal tax savings. This is frequently missed — check your past returns.Most missed deduction in Hawaii
6
File even at zero revenueA zero return on Form G-45 is required every filing period — even if you had no income. Missing a zero return triggers a $25 minimum penalty per period. It takes 2 minutes at hitax.hawaii.gov — just do it.
GET registration — do this before your first sale
1
File Form BB-1 at hitax.hawaii.govThe Basic Business Application registers you for GET. Free to file. You'll receive your Hawaii Tax ID and GET license number — required before your first sale.Must do before first sale
2
Determine your filing frequencyHawaii assigns GET filing frequency based on your estimated annual liability. Under $2,000/yr — annual. $2,000–$4,000/yr — semi-annual. Over $4,000/yr — monthly. Most growing businesses file monthly.
3
File G-45 each period + G-49 annuallyForm G-45 is your periodic GET return — due the 20th of the month following each period. Form G-49 is your annual reconciliation — due the 4th month after your fiscal year end.

All Hawaii tax rates

General Excise Tax rates
4.5%
GET — Oahu retail/services
Most businesses operating in Honolulu County. Includes the 0.5% county surcharge
4.0%
GET — neighbor islands
Maui, Big Island, Kauai. No county surcharge applies
0.5%
GET — wholesale
Selling to licensed resellers — requires valid resale certificates from each buyer
0.15%
GET — insurance commissions
Insurance agents and brokers — special lower rate applies
$2,000
Small biz exemption threshold
Under $2k annual GET liability — no tax owed but must still file returns
4.166%
Max GET pass-through (Oahu)
Maximum legal surcharge you can add to invoices to recover GET from clients
Hawaii income tax brackets (single filer)
1.4%
$0 – $2,400Lowest bracket — very small income range before stepping up
3.2%
$2,401 – $4,800Second bracket — still relatively low rate
5.5%
$4,801 – $9,600Mid-low bracket
6.4%
$9,601 – $14,400Mid bracket
6.8%
$14,401 – $19,200Mid bracket
7.2%
$19,201 – $24,000Upper mid bracket
7.6%
$24,001 – $36,000Upper mid bracket
7.9%
$36,001 – $48,000Upper bracket
8.25%
$48,001 – $150,000Where most founders land
9.0%
$150,001 – $175,000High income bracket
10.0%
$175,001 – $200,000High income bracket
11.0%
Over $200,000Top rate — highest in the US. Makes retirement contributions and S-Corp elections extremely valuable

Every Hawaii form a small business founder needs

GET forms — Hawaii Department of Taxation
BB-1
Basic Business ApplicationRegister for GET with Hawaii DoTax. File at hitax.hawaii.gov before your first sale. Free. You'll receive your GET license number and Hawaii Tax ID.
Before first sale
G-45
General Excise/Use Tax Periodic ReturnFiled monthly, quarterly, or semi-annually depending on your liability. Due the 20th of the month following the filing period. File even if zero revenue — $25 penalty for missing a zero return.
20th of following month
G-49
Annual GET Return and ReconciliationReconciles all G-45 filings for the year. Due the 4th month after your fiscal year end — April 20 for calendar year filers. Required even if all G-45s were accurate.
Apr 20
Income tax forms
N-11
Hawaii Individual Income Tax ReturnFull-year Hawaii residents. Required if you have Hawaii income above the filing threshold. Includes Schedule C for sole props and single-member LLC owners.
Apr 20
N-200V
Individual Income Tax Payment VoucherFor making Hawaii estimated quarterly tax payments. Hawaii's estimated tax schedule follows federal timing — April, June, September, January.
Quarterly
N-35
Hawaii S-Corporation ReturnRequired for Hawaii S-Corps in addition to the federal Form 1120-S. Hawaii does not automatically recognize federal S-Corp elections — you must file N-35 annually. Due March 20.
Mar 20
N-20
Hawaii Partnership ReturnFiled by multi-member LLCs and partnerships. Reports income allocation. Each partner includes their share on their N-11 personal return.
Mar 20
Employer forms
HW-14
Employer's Annual Return and ReconciliationFiled by employers. Reconciles all HW-2s for the year. Due the last day of February following the tax year.
Feb 28
HW-3
Hawaii Withholding Tax ReturnQuarterly employer withholding return. Reports Hawaii income tax withheld from employee wages. Due the last day of the month following each quarter.
Quarterly
UC-B6
Quarterly Wage, Contribution and Employment ReportUnemployment insurance contributions filed with Hawaii Department of Labor. Required for all employers each quarter.
Quarterly

Hawaii filing calendar — full year

Jan 15
Q4 federal estimated tax (Form 1040-ES)Covers September 1 – December 31 federal income
Federal
Jan 20
G-45 — Q4 GET return (quarterly filers)File and pay GET for October – December. File at hitax.hawaii.gov
GET
Jan 31
W-2s to employees · 1099-NECs to contractorsMust be delivered to recipients. Federal requirement — Hawaii follows same timeline
Employer
Feb 28
HW-14 employer annual reconciliationAnnual Hawaii employer withholding reconciliation due
Employer
Mar 20
Hawaii S-Corp return (N-35) · Partnership return (N-20)Entity returns due one month before personal returns — K-1s must go to members first
Entity
Apr 15
Federal 1040 + Q1 federal estimated taxFile federal personal return and pay first quarterly federal estimated payment
Federal
Apr 20
N-11 Hawaii income tax return + G-49 annual GET + G-45 Q1Biggest Hawaii filing day — three obligations. Personal return, annual GET reconciliation, and Q1 GET periodic return all due
Critical
Jun 20
G-45 Q2 GET return + Q2 Hawaii estimated taxGET for April – June and second Hawaii estimated income tax payment
GET + Est.
Sep 20
G-45 Q3 GET return + Q3 Hawaii estimated taxGET for July – September and third Hawaii estimated income tax payment
GET + Est.
Oct 20
Extended Hawaii N-11 personal return dueIf you filed an extension in April — this is your Hawaii final deadline
Extended
Jan 20
G-45 Q4 GET return + Q4 Hawaii estimated taxFinal quarterly GET and estimated tax for the year
Year end
Set calendar reminders 2 weeks before each deadline — not the day of. Pay Hawaii taxes at hitax.hawaii.gov and federal at eftps.gov. Keep them completely separate.

Hawaii tax estimator

Estimate your combined federal + Hawaii GET + Hawaii income tax burden and quarterly payment schedule.

$80,000
$100,000
—
—
$4,500
GET owed
$12,458
federal income + SE tax
$5,800
Hawaii income tax
$22,758
total tax burden
$5,690
avg. quarterly payment
28.4%
effective total rate
GET deduction reminder: Your GET payments are deductible on your federal return. The calculator above shows your GET as a cost — but remember to deduct it when you file your federal return to get some of it back.

Key tips for Hawaii founders

Pass GET to your clients — it's legal and most Hawaii businesses do it. Add a line on every invoice: "Hawaii General Excise Tax (4.166%): $X." Collect it from clients, remit to the state. Your net GET cost becomes zero. Many founders absorb GET unnecessarily for years before learning this.
GET is your most deductible state tax. Because GET is calculated on gross revenue, a high-revenue business pays significant GET — and every dollar is deductible federally as a business expense. At the 22% federal bracket, $15,000 in annual GET = $3,300 back. Never forget to claim it.
File your G-45 even at zero revenue. The $25 penalty per missed period adds up fast — and Hawaii DoTax tracks them all. A zero return takes 2 minutes online. Never skip it.
The 11% income tax rate makes every dollar of deduction worth 11 cents more than in most states. Home office, mileage, health insurance premiums, SEP-IRA contributions — all of these save you Hawaii state tax on top of federal savings. Many Hawaii founders under-claim deductions and overpay significantly.
S-Corp election + SEP-IRA is Hawaii's most powerful tax combination. An S-Corp election reduces self-employment tax. A SEP-IRA contribution (up to 25% of salary) reduces both federal AND Hawaii income tax. Together at $100k profit they can save $6,000–$10,000/yr in combined taxes. See the LLC vs S-Corp guide for the full breakdown.
Hawaii TDI and Prepaid Health Care Act: Hawaii is one of only a handful of states requiring both Temporary Disability Insurance (TDI) and employer-provided health insurance for employees working 20+ hours/week. Employer must pay at least 1.5% of employee wages toward health premiums. Factor this into your hiring cost calculations.