General Excise Tax (GET)

STATE

Gross income earned in Hawaii is required to be reported on a periodic and annual general excise tax (GET) returns with a tax rate of 4%. The tax is based on gross income received, before any deductions, expenses, or costs. The frequency of filing periodic returns (G-45) depends on the forecasted GET payable during the year.

The returns can be filed online through your Hawaii tax account (we can assist in your set-up). 

An annual reconciliation (G-49) needs to be filed by April 20th after the close of the calendar year. 

COUNTY

In addition to GET liability, the returns also include county surcharges that is 0.5% (as of 2024). The county taxes are incorporated in the same returns as the State.

OTHER TAXES ON GET RETURN

Another tax reportable and payable on the GET forms is the use tax and tax on insurance commissions. Use tax is to capture 4% tax on items that were purchased out-of-state but brought into state. Insurance commissions is taxed at 0.15% on top of other taxes.

Experts in GET registration, reconciling income to report, catching up and filing general excise tax returns.


General Excise Tax - Q&A

Question: Is GET a sales tax?

Answer: No. GET is assessed on all Hawaii business activities, not just upon a sale of a tangible good or service. Therefore, GET encompasses a much broader range of income to be taxed.

Question: Is GET only imposed on retail sales?

Answer: No. GET is imposed on gross income from most types of business activities including wholesaling of goods and services, the retailing of goods and services, contracting, renting real property or tangible personal property, interest income from an agreement of sale, commission income, and many other sources of income. 

Question: If I rent my Hawaii property, do I have to pay GET?

Answer: Yes, rental income is subject to GET.

Question: I did not have any profit; do I still need to pay GET?

Answer: Unfortunately, yes. Since GET is taxed on gross income and not net income, any income received is subject to tax. 

Question: Are there any deductions  or exemptions from GET?

Answer: Unlike income tax returns, there are hardly any deductions to reduce the income reported for GET purposes to calculate the tax. Some deductions include payments in relation to federal governments contracts and programs, bad debt and out-of-state sales. There are some exemptions allowed relating to federal and specific activities, such as alimony, and federal mandated taxes collected. A list of deductions and exemptions can be found in the G-45 instructions under Schedule of General Excise Tax Exemptions and Deductions. Although you may qualify for a GET exemption, you are still required to file the GET returns along with an additional schedule to claim the exemption.

Question: Why do islands have different GET rates?

Answer: The GET includes both a state and county surcharge tax. The state tax rate is 4% on gross income across all islands. There are four counties in Hawaii - City & County of Honolulu (Oahu), County of Maui (Maui, Lanai, Molokai, Kahoolawe), County of Hawaii (Big Island), County of Kauai (Kauai, Niihau) and a quasi-county of Kalawao on Maui. Each county has its own government, with elected mayor and council. Each county can determine the county surcharge tax at a rate that is not greater than 0.5%. The counties adopted the surcharge added to activities taxed at 4% of:

Question: What is the penalty and interest for not paying GET?

Answer: The penalty for failure to filing a GET return is 5% a month, or partial month, on the unpaid tax up to a maximum of 25%. If the GET return was filed on time, but the tax not paid within 60 days of the due date of the return, a penalty of 20% of the unpaid balance will be assessed. Interest is calculated at 2/3 of 1% per month, or partial month, on unpaid taxes and penalties beginning with the first calendar day after the due date of the payment, whether or not the first calendar day falls on the weekend or holiday.

Question: Where can I find more information on filing GET returns?

Answer: We can assist you in applying for your GET license and filing your periodic and annual GET returns. Although our service fee is another cost, it may be beneficial to use someone who knows how to work through the maze of filing your returns correctly to minimize penalties and interest. If you would like to file your  own GET returns, please see the department of taxation return general instructions.