Businesses in Hawaii are subject to General Excise Tax (GET) on their gross receipts, which is the total business income prior to any deductions. Most activities are taxed at 0.5%, 4%, or 4.5%, except in the case of insurance commissions, which are taxed at 0.15%.
|TAX RATE||EXAMPLES OF TAXABLE ACTIVITIES|
|0.5%||Wholesaling goods, manufacturing, producing, providing wholesale services, business activities of disabled people|
|4% or 4.5%||Selling retail goods and services, renting, leasing real property, construction contracting, earning commissions|
Some companies pass along the GET expense to their customers, but this is not required by law. In some cases, charging GET to customers is illegal, per section 431:10-218, Hawaii Revised Statutes (HRS). There are regulations on maximum GET rates businesses can charge their customers. Businesses choosing to pass on GET to the customer must notify the customer. Violations of GET policy are subject to fines, as defined by the State of Hawaii, Department of Taxation.
By default, LodeStar will itemize out and quote the Hawaii GET within in Section C, as shown below. LodeStar does have the ability to bundle the GET into other fees, if requested.
To learn more about Hawaii GET, see the State of Hawaii, Department of Taxation.