Hawaii General Excise Tax (GET): Complete Business Owner Guide (2026)

If you do business in Hawaii, you must understand the General Excise Tax (GET). It is the single most important tax for Hawaii businesses—more important than income tax for many small operators—because it applies to every dollar of gross revenue you earn, with no deductions for expenses and no threshold below which you're exempt.

This guide covers everything a Hawaii business owner needs to know about GET in 2026: what it is, how it works, current rates including county surcharges, how to pass the tax to customers, filing requirements, forms, deadlines, penalties, and the most common mistakes businesses make.

What Is the Hawaii General Excise Tax?

The Hawaii General Excise Tax (GET) is a privilege tax imposed on businesses for the privilege of doing business in Hawaii. It is levied on gross receipts—meaning the total amount of money your business takes in—regardless of your expenses, profit margins, or whether you actually made money that year.

GET is codified in Hawaii Revised Statutes (HRS) Chapter 237 and is administered by the Hawaii Department of Taxation (DOTAX). It applies to virtually every type of business activity conducted in the state, including:

• Retail sales of goods and products
• Services of all types (consulting, repair, cleaning, professional services, etc.)
• Contracting (construction, renovation, maintenance)
• Rental income (commercial and residential)
• Commissions and fees
• Interest income from business activities
• Wholesale transactions between businesses

The key word is gross. If you run a restaurant and take in $500,000 in revenue but spend $400,000 on food, rent, labor, and supplies, you owe GET on the full $500,000—not on your $100,000 profit. This is what makes GET fundamentally different from an income tax, and it is what makes it so significant for businesses with thin margins.

GET vs. Sales Tax: Why the Difference Matters

If you've moved to Hawaii from the mainland, you probably think of GET like a sales tax. It looks similar on a receipt. But the legal and practical differences are significant:

Why This Matters in Practice

Tax pyramiding is the biggest practical consequence. Because GET applies at every level of a transaction chain, the tax gets embedded in prices and taxed again at the next level. For example:

1. A lumber wholesaler sells wood to a contractor for $1,000. The wholesaler pays 0.5% GET ($5).
2. The contractor uses the wood in a $3,000 job. The contractor pays 4.5% GET (4% plus the 0.5% county surcharge) on $3,000 ($135)—which already includes the cost of GET from step 1.
3. The homeowner pays $3,000 (plus any pass-on amount), but embedded in that $3,000 is already multiple layers of GET from the supply chain.

This pyramiding effect means the effective tax rate on a final product or service in Hawaii is often higher than the stated 4% or 4.5% rate, because GET has been applied at each step along the way.

GET Rates by Activity Type

Not all business activities are taxed at the same rate. Hawaii GET has several rate tiers depending on the type of transaction. Here are the base state rates (before the county surcharge):

How to Determine the Correct Rate

The most common question business owners ask is: "Am I retail or wholesale?" Here's the key distinction:

• Retail (4%): The buyer is the end consumer or user of the product/service. They are not reselling it.
• Wholesale (0.5%): The buyer has a valid Hawaii GET license, and they are purchasing the goods specifically for resale. You must keep a copy of the buyer's GET license number on file to claim the wholesale rate.

If you cannot verify the buyer's GET license, treat the transaction as retail and charge 4%. It is always safer to pay the higher rate than to claim the lower rate without proper documentation.

County Surcharge: The Extra 0.5%

On top of the base state GET rate, each of Hawaii's four counties imposes an additional 0.5% county surcharge. As of 2024, all four counties have enacted the surcharge, making it effectively statewide:

Which County Applies?

The county surcharge is based on where the business activity occurs—not where your business is headquartered. If you operate on multiple islands, you may need to allocate income across counties using Form G-75 (more on that below).

General rules for determining the county:

• Retail sales of tangible goods: The county where the goods are delivered to the customer.
• Services: The county where the service is performed.
• Contracting: The county where the jobsite is located.
• Rentals: The county where the property is located.

If you do all your business in one county, allocation is simple. But if you're a contractor who works on both Oahu and the Big Island, or a consultant with clients across the islands, you must track your revenue by county.

The Pass-On Rate: Why You Charge 4.7120%

Hawaii law allows businesses to visibly pass on the GET to customers. Most businesses do this, and if you've seen receipts in Hawaii that show a "tax" line of about 4.712%, this is why.

But wait—if the combined rate is 4.5%, why do businesses charge 4.7120%?

The Math Behind 4.7120%

Here's the catch: the GET you collect from customers is itself subject to GET. Remember, GET is based on gross receipts, and any money your customer pays you—including the amount earmarked for GET—is part of your gross receipts.

So if you simply charged 4.5% on top of your price, you'd actually be short because you'd owe GET on the GET amount too. The pass-on rate is calculated to make you exactly whole:

Example Calculation

Say you sell a product for $100:

1. You add the 4.7120% pass-on: $100 × 0.04712 = $4.71
2. Customer pays you $104.71 total
3. Your gross receipts for GET purposes = $104.71
4. GET owed at 4.5%: $104.71 × 0.045 = $4.71
5. You've collected exactly enough to cover the tax

If you had only charged 4.5% ($4.50), your gross receipts would be $104.50, and your GET owed would be $104.50 × 0.045 = $4.70—you'd be 20 cents short. Over thousands of transactions, those pennies add up fast.

Is Passing On GET Required?

No. Passing GET on to customers is entirely optional. You can absorb it as a cost of doing business. Many businesses, especially those serving price-sensitive markets, build GET into their prices rather than showing it as a separate line item. Just remember: you owe the tax either way.

If you do visibly pass it on, Hawaii law requires you to show it correctly on your invoice or receipt. You cannot call it "sales tax"—it should be labeled as "GET" or "Hawaii General Excise Tax" or similar language that accurately describes it.

Who Must Pay GET

The short answer: virtually every person or entity conducting business in Hawaii.

GET applies to:

• Sole proprietors and freelancers
• LLCs (single-member and multi-member)
• Corporations (S-corps and C-corps)
• Partnerships
• Nonprofits (with some exemptions for certain activities)
• Out-of-state businesses with income from Hawaii activities
• Online sellers making sales to Hawaii customers
• Independent contractors and gig workers
• Landlords receiving rental income in Hawaii

Casual and Occasional Sales

There is a narrow exception for truly casual or isolated transactions that do not constitute engaging in business. For example, selling your personal used furniture in a one-time garage sale is generally not subject to GET. However, if you regularly sell items—even as a side hustle—the Department of Taxation will consider that a business activity subject to GET.

Getting Your GET License

Before you can legally do business in Hawaii, you need a General Excise Tax license (also called a GET license or "GE license"). This is your authorization to conduct business in the state.

How to Apply

1. Register online through Hawaii Tax Online (HTO) at hitax.hawaii.gov, or
2. File Form BB-1 (Basic Business Application) with the Hawaii Department of Taxation

Key Details

• Cost: $20 one-time registration fee
• Processing time: Online applications are typically processed within a few business days
• Duration: The license is valid as long as you remain in business (no renewal required)
• Display: You must display your GET license at your place of business
• Separate licenses: Each business entity needs its own license. If you operate multiple businesses as separate entities, each one needs a separate GET license

Filing Frequencies and Deadlines

How often you file GET returns depends on your annual tax liability. The Department of Taxation assigns your filing frequency, but you can request a change if your circumstances shift.

Quarterly Due Dates (2026)

• Q1 (Jan–Mar): April 20, 2026
• Q2 (Apr–Jun): July 20, 2026
• Q3 (Jul–Sep): October 20, 2026
• Q4 (Oct–Dec): January 20, 2027

Semi-Annual Due Dates (2026)

• First half (Jan–Jun): July 20, 2026
• Second half (Jul–Dec): January 20, 2027

Annual Return (G-49)

Regardless of your filing frequency, every business must file an annual reconciliation return (Form G-49) by April 20 of the following year. For tax year 2025, the G-49 is due April 20, 2026. For tax year 2026, it's due April 20, 2027.

GET Forms Explained

There are three main GET forms you need to know about:

Form G-45: Periodic General Excise/Use Tax Return

This is the form you file monthly, quarterly, or semi-annually depending on your assigned frequency. It reports your gross income, broken down by activity type and tax rate, for the period. You calculate and pay your GET and county surcharge with this form.

Key sections of the G-45:

• Part I: General excise activities at various rates (retailing, services, contracting, wholesale, etc.)
• Part II: Use tax on imports (if applicable)
• Part III: County surcharge calculation
• Part IV: Total tax due and payment

Form G-49: Annual Return and Reconciliation

The G-49 is the annual reconciliation form filed once a year. It summarizes your total gross income for the entire year across all activity types, reconciles what you've already paid through your G-45 periodic filings, and calculates any remaining balance due or overpayment.

Think of it like this: your G-45s are the periodic estimated payments, and the G-49 is the final "true-up" for the year.

Form G-75: County Surcharge Allocation

If your business operates in more than one county, you must file Form G-75 to allocate your gross income across the applicable counties for surcharge purposes. This ensures each county receives the correct surcharge amount.

Since all four counties now have the same 0.5% surcharge rate, the G-75 is more of a reporting formality in 2026—but it is still required for multi-county businesses.

How to Calculate GET You Owe

Here is a step-by-step calculation for a typical retail/service business on Oahu:

Example: Monthly Filing for a Service Business

Suppose your consulting firm earned $25,000 in gross receipts for January 2026, and you passed on the GET to all your clients.

1. Gross receipts from clients: $25,000 (this is what clients paid you, including the passed-on GET)
2. State GET at 4.0%: $25,000 × 0.04 = $1,000.00
3. County surcharge at 0.5%: $25,000 × 0.005 = $125.00
4. Total tax owed: $1,000.00 + $125.00 = $1,125.00
5. Due date: February 20, 2026

Mixed-Rate Calculation

If you have both retail and wholesale transactions, you must calculate them separately:

• Retail receipts: $20,000 × 4.5% = $900.00
• Wholesale receipts: $10,000 × 0.5% = $50.00 (no county surcharge on wholesale)
• Total GET owed: $950.00

Each category is reported on its own line on the G-45 form.

Common Mistakes to Avoid

These are the most common GET mistakes Hawaii businesses make:

1. Treating GET Like a Sales Tax

This is mistake number one. Business owners from the mainland assume they can exclude certain items or transactions that would be exempt from sales tax in other states. In Hawaii, there are very few exemptions. Services are taxed. Digital products are taxed. Business-to-business sales of goods for resale are taxed at the 0.5% wholesale rate, and most business-to-business services are taxed at 4% plus the surcharge. If in doubt, assume it's taxable.

2. Forgetting the County Surcharge

Some businesses calculate their GET at 4% and call it done, forgetting the additional 0.5% county surcharge. Since all four counties now have the surcharge, there is nowhere in Hawaii where you only owe 4% on retail/service transactions. The effective rate is 4.5% everywhere in the state.

3. Using the Wrong Rate for Transaction Types

Applying the retail rate (4%) to wholesale transactions, or worse, applying the wholesale rate (0.5%) to retail transactions. Each transaction must be classified correctly. If you sell to another business that does not have a GET license or is not purchasing for resale, that's a retail transaction at 4%, not wholesale at 0.5%.

4. Not Filing Zero Returns

If you had no revenue in a period but your GET license is still active, you must still file a return showing zero. DOTAX will assess penalties for missing returns and may estimate your tax liability if you don't file.

5. Charging Exactly 4.5% Instead of 4.7120%

If you pass GET on to customers, charging exactly 4.5% leaves you short because the pass-on amount itself is part of your taxable gross receipts. Use the correct pass-on rate of 4.7120% for retail/service transactions.

6. Missing Filing Deadlines

GET returns are due on the 20th of the month following the period. Unlike federal taxes, Hawaii does not give you an automatic extension for GET. Late filing triggers immediate penalties and interest.

7. Not Closing an Inactive GET License

If you stop doing business in Hawaii, you must formally close your GET license by filing a final return. Otherwise, DOTAX will continue to expect returns and may assess penalties for unfiled periods. File Form GEW-TA-RV-1 to cancel your license. (Form GEW-TA-RV-6 is the request for an extension of time to file the annual G-49.)

Penalties and Interest

Hawaii imposes significant penalties for late filing and late payment of GET:

Late Filing Penalty

• 5% of the tax due for each month (or partial month) the return is late
• Maximum penalty: 25% of the tax due (reached after 5 months)
• Applies even if the tax is paid on time but the return is filed late

Late Payment Penalty

• Up to 20% of the unpaid tax if not paid within 60 days of the due date

Interest

• 2/3 of 1% per month (8% per year) on any unpaid balance
• Interest accrues from the original due date until the tax is paid in full
• Interest is compounded and cannot be waived

Example: Late Filing Cost

If you owe $2,000 in GET and file 3 months late:

• Late filing penalty: $2,000 × 5% × 3 months = $300
• Interest: $2,000 × 0.6667% × 3 months = $40
• Total additional cost: $340

And if you still haven't paid after 60 days, add the 20% late payment penalty ($400) on top of that. The total penalties and interest can easily exceed the original tax owed if left unaddressed.

GET Exemptions and Special Situations

While GET applies broadly, there are some notable exemptions and special situations:

Common Exemptions

• Wages and salary: Employees do not pay GET on their wages (your employer pays GET on their gross income, but you as a W-2 employee do not)
• Certain nonprofit activities: Qualified 501(c)(3) organizations may be exempt for activities directly related to their exempt purpose (but not for unrelated business income)
• Federal government sales: Sales directly to the U.S. federal government are exempt
• Prescription medicine and prosthetic devices: Exempt from GET
• Certain agricultural activities: Some farming and agricultural sales have exemptions or reduced rates
• Amounts received under certain federal programs: Including Medicare and Medicaid payments in some cases

Special Situations

• Subcontractors: If you're a subcontractor, the general contractor may be able to deduct your portion from their GET (to reduce pyramiding). The deduction (HRS §237-13(3)(B)) is claimed on Schedule GE with the subcontractor’s name and Hawaii Tax ID. Building materials sold to a licensed contractor for incorporation into the finished work are taxed at the 0.5% wholesale rate.
• Out-of-state sellers: If you sell goods or services into Hawaii from outside the state, you may still owe GET or Use Tax. Hawaii has nexus rules that can apply to remote sellers.
• Rental income: Residential and commercial rental income is subject to GET at 4% (plus the county surcharge). This is in addition to the Transient Accommodations Tax (TAT) if you rent short-term.

Let PDS Handle Your GET Filing

The General Excise Tax is straightforward in concept but demanding in execution. Between tracking multiple transaction types, allocating across counties, calculating the correct pass-on rates, filing returns on time every month or quarter, and reconciling everything annually, GET compliance takes real time and attention.

That's where Pacific Data Services (PDS) comes in.

PDS has been serving Hawaii businesses since 1969. As part of our bookkeeping services, we handle GET filing for our clients—calculating the correct amounts, preparing and filing the G-45, G-49, and G-75 forms, and ensuring every return is submitted accurately and on time.

What PDS Does for GET

• Calculates your GET based on your actual gross receipts, broken down by transaction type and county
• Prepares and files your G-45 periodic returns and G-49 annual reconciliation
• Handles multi-county allocation with Form G-75 if you operate across islands
• Tracks deadlines so you never miss a filing date
• Integrates with payroll—if PDS also handles your payroll, your bookkeeping and tax data stay in sync
• Keeps you compliant so you can focus on running your business, not chasing tax forms