Hawaii Sales Tax Guide
Hawaii's state sales tax rate is 4%. Combined with local rates, buyers see 4% – 4.5% depending on the jurisdiction. Out-of-state sellers register once they cross the economic nexus threshold.
4%
up to 4.5%
$100K
annual revenue
2018
Wayfair year
Rate Structure
State base rate: 4%
Local option: Cities and counties in Hawaii can add local rates on top, bringing combined rates to 4% – 4.5%.
Sourcing: Most states use destination-based sourcing (rate is based on where the customer receives the product). Verify with Hawaii Department of Revenue for edge cases.
Economic Nexus
Out-of-state sellers must register and collect Hawaii sales tax once they exceed:
- $100,000 in annual sales to Hawaii customers
- OR 200 transactions per year
In-state sellers (physical presence) must register from day one — no threshold applies.
Effective enforcement began in 2018 following the South Dakota v. Wayfair decision.
Marketplace Facilitator Law
Yes — Hawaii has a marketplace facilitator law. Marketplaces like Amazon, Etsy, Walmart Marketplace, and eBay collect and remit sales tax on your behalf. Sales made through those marketplaces typically don't count toward your economic nexus threshold in Hawaii. Sales made through your own website or invoicing do count.
Registration Process
- 1
Confirm you have nexus
Use the Nexus Checker to confirm you've crossed the threshold. Physical presence triggers registration immediately.
- 2
Register with the Hawaii Department of Revenue
Typically 30-60 days after crossing threshold. Free registration (no fee) in most states. You'll get a sales tax permit / seller's permit.
- 3
Collect sales tax on taxable transactions
Configure your ecommerce platform (Shopify, Amazon, WooCommerce) to charge the correct destination rate. Most platforms have built-in tax logic.
- 4
File returns on schedule
Filing frequency (monthly/quarterly/annual) is set by the state based on your volume — typically monthly for high-volume sellers.
Multi-state seller? Consider a sales-tax service (TaxJar, Avalara) or a specialist CPA once you're registered in 5+ states — the return-filing workload compounds fast.
Hawaii Sales Tax Quirks
Rules and rate structures that make Hawaii different from other states — worth knowing before you register or file.
- Hawaii doesn't have a traditional sales tax — it has General Excise Tax (GET), which is levied on the seller (not buyer) and applies to nearly all business activity including services.
- Hawaii's GET rate is 4.0% (state) plus 0.5% county surcharge in Honolulu and some others — 4.5% combined.
- Hawaii applies GET to wholesale-to-wholesale and B2B transactions (unlike most sales taxes), often multiple times on the same goods.
Reference only.
Thresholds and rates change. Verify current values with the Hawaii Department of Revenue before registering or ignoring a state. Product taxability rules (SaaS, digital goods, services) vary significantly and are not covered here.