HI
Hawaii Small Business Tax Guide
Hawaii's General Excise Tax and filing deadlines, quoted from the Department of Taxation with each page's own date. An educational overview, not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in Hawaii before making filing or planning decisions.
Tax landscape for small businesses
Hawaii's Department of Taxation describes its main business tax on its GET page (Hawaii, page last updated August 27, 2026): "The General Excise Tax (GET) is Hawaii’s tax on business activity." It adds: "Unlike a traditional sales tax, GET is levied on the business rather than the customer, though many businesses choose to pass the cost on to customers."
On the same GET page (Hawaii, page last updated August 27, 2026), the rate for "Selling retail goods and services, renting, leasing real property, construction contracting, earning commissions, all others" is "4.5%*", and the footnote says: "*This 4.5% rate includes a 0.5% county surcharge." The rate for "Wholesaling goods, producing, providing wholesale services, business activities of disabled people" is "0.50%".
Who needs a license: the GET page (Hawaii, page last updated August 27, 2026) says: "An individual, business, or other legal entity must register for a GET license if they are: engaging in business activities in Hawaii, have physical nexus, or meet/exceed the economic nexus threshold." For remote sellers it says: "If the business has gross income or receipts of $100,000 or more, or has 200 or more transactions in the current or preceding calendar year, economic nexus is established."
Worked example, with sample figures: a Honolulu consultant bills $2,000.00 for services taxed at the 4.5% rate quoted above from the GET page (Hawaii, page last updated August 27, 2026). The GET on that income is $2,000.00 × 4.5% = $90.00. If the consultant passes the tax on, the Department's county surcharge page (Hawaii, page last updated January 9, 2024) gives the maximum pass-on rate for the City and County of Honolulu as "4.7120%", so the most that can be added to the invoice is $2,000.00 × 4.7120% = $94.24, for a total of $2,094.24. Use your own figures; these are only an illustration.
Billed's invoice software page says: "Save your tax rates and settings once, and Billed calculates taxes automatically when you create invoices and estimates."
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| General Excise Tax (standard rate) | "4.5%", which "includes a 0.5% county surcharge" | Department of Taxation GET page (Hawaii, page last updated August 27, 2026). Applies to "Selling retail goods and services, renting, leasing real property, construction contracting, earning commissions, all others". |
| General Excise Tax (wholesale and producing) | "0.50%" | GET page (Hawaii, page last updated August 27, 2026): "Wholesaling goods, producing, providing wholesale services, business activities of disabled people". |
| County surcharge | "0.5%" in each county listed | County surcharge page (Hawaii, page last updated January 9, 2024): "The county surcharge is only added to activities taxed at the 4.0% rate." |
| Employer withholding | Rates and tables in Booklet A | Withholding page (Hawaii, page last updated January 14, 2026): "For information on Hawaii rates, please refer to the Appendix of Booklet A Employer’s Tax Guide (Rev. 2025) for tax withholding rates and tables." |
Filing requirements
This list isn't a complete checklist for your business.
GET license (Form BB-1)
The GET page (Hawaii, page last updated August 27, 2026) says: "1. Complete the State of Hawaii Basic Business Application (Form BB-1)." It also says: "Display your GET license at EACH place of business".
Periodic GET returns (Form G-45)
GET page (Hawaii, page last updated August 27, 2026): "Deadline to file Form G-45 is 20 days after the tax period ends." How often you file depends on expected liability: "If Expected Annual GET Liability ≤ $2000, then file Semi-Annually", "If Expected Annual GET Liability ≤ $4000, then file Quarterly" and "If Expected Annual GET Liability > $4000, then file Monthly".
Annual GET return (Form G-49)
GET page (Hawaii, page last updated August 27, 2026): "Deadline to file Form G-49 is the 20th day of the fourth month following your tax year end." It adds: "Taxpayers must file a return even if they have no income (also known as a “zero return”)."
Employer withholding returns (Form HW-14)
Withholding page (Hawaii, page last updated January 14, 2026): "All withholding taxpayers need to file returns quarterly (due April 15, July 15, October 15, and January 15) using Form HW-14."
Deductions and write-offs
Confirm with your state how it treats each item.
- GET exemptions: the GET page (Hawaii, page last updated August 27, 2026) says: "All gross receipts from these activities are subject to GET unless a specific exemption applies. Certain types of income may be exempt or subject to deduction under Hawaii law." The same page links its Schedule of GET Exemptions and Deductions for the list.
- Employer-equivalent portion: In the US (federal), the IRS self-employment tax page (updated October 30, 2026) says: "You can deduct the employer-equivalent portion of your self-employment tax in figuring your adjusted gross income." How Hawaii treats it is a question for the Department of Taxation or a tax professional.
- Records behind each expense: In the US (federal), the IRS recordkeeping page (updated May 1, 2026) says: "You must be able to prove certain elements of expenses to deduct them."
Practical tips
- Decide once whether you pass GET on to customers, and show it the same way on every invoice.
- Check the county before you set a pass-on rate: the county surcharge page (Hawaii, page last updated January 9, 2024) lists a maximum rate for each county.
- Note each return's due date when the tax period closes, so periodic and annual returns aren't missed.
- Keep receipts with their expenses, so the figures on your returns are easy to support.
Frequently asked questions
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At a glance
| Topic | Official source | Date shown |
|---|---|---|
| General Excise Tax | Hawaii Department of Taxation, GET page | Last updated August 27, 2026 |
| County surcharge | Department of Taxation, county surcharge page | Last updated January 9, 2024 |
| Employer withholding | Department of Taxation, withholding page | Last updated January 14, 2026 |
| Federal self-employment tax | IRS.gov | Updated October 30, 2026 |
When this isn't for you
For filing decisions, rely on the Department of Taxation or a tax professional. Outside this page's scope: Hawaii income tax rates, other Hawaii taxes, use tax, or which particular GET exemption or deduction applies to your income; check those with the Department before you file.