Hawaii Sales Tax

The current state sales tax rate in Hawaii (HI) is 4%. The total tax rate might be as high as 4.5 percent depending on local municipalities. Other, local-level tax rates in Hawaii are relatively complex when compared to other states’ local-level tax rates. The municipal, county, school, transportation, and SPD (special purpose district) levels in Hawaii may all levy a sales tax. Due to the large number of jurisdictions, the Hawaii sales tax is difficult and time demanding to monitor and update on a regular basis. A marketplace facilitator must collect and remit sales tax on all sales into the state, including those made by unlicensed sellers, beginning January 1, 2020. In Hawaii, all firms selling, transferring, bartering, licensing, leasing, renting, using, or otherwise consuming taxable tangible personal property must register with the state and collect and remit sales tax. Many service providers are needed to register and collect in order to complete the sale of taxable tangible personal property.

Sales Tax Rates in Hawaii by County

In Hawaii, when do you have to charge sales tax?

If your business has a sales tax nexus in Hawaii, you must charge sales tax. In different states, the term “sales tax nexus” signifies different things. It could be having a physical site (e.g., a brick and mortar business) or having someone working for you in the state. It can also refer to having a ‘affiliate’ or ‘click through’ sales tax nexus in the case of ecommerce.

Check the Hawaii government’s sales tax website to see if you should be charging sales tax in your state.

In Hawaii, which items are exempt from sales tax?

Prescription medications, for example, are free from sales tax in Hawaii. There are also Hawaii sales tax exemptions that can be used if the seller or buyer meets specific requirements.

Check the Hawaii government’s tax website for a complete list of exemptions.

What is Hawaii known for?

Hawaii is known for:

• Aloha shirt
• Luaus
• The Hula dance
• Lei
• Stunning beaches
• Volcanic activity
• Water sports
• High cost of living
• Coffee

Hawaii Fun Facts

• Iolani Palace in Honolulu is the only royal palace in the United States.
• Hawaii is the southernmost state in the United States.
• Ka Lae on the Big Island of Hawaii is the southernmost point in the United States.
• Hawaii is the only state that grows coffee.
• Hawaii is one of the two states in the United States that do not observe Daylight Savings Time (Arizona is the other).
• In Hawaii you will be fined for riding in the back of a passenger car without a seatbelt, however you can ride in the bed of a pickup truck with no safety equipment
• By law, no building on Kauai is allowed to be built taller than a palm tree.
• Hawaii is the only state in the United States to honor a king, celebrating King Kamehameha Day on June 11th since 1872. King Kamehameha I (Kamehameha the Great) is known for uniting the Hawaiian Islands in 1810.
• There are only 12 letters in the Hawaiian alphabet. Vowels include A, E, I, O, and U. Consonants include H, K, L, M, N, P, and W.
• The widest state from east to west is Hawaii, stretching across 1,500 miles.
• In 1970, Hawaii became the first state to legalize abortions on the request of the woman.

Tourist Attractions in Hawaii

• Aulani: Resort hotel in Kapolei, on the island of Oahu.
• Diamond Head: State park in Honolulu, on the island of Oahu.
• Haleakala National Park: National park on the southeastern part of Maui.
• Hanauma Bay: State park in the Hawaii Kai neighborhood, on the island of Oahu.
• Hawaii Volcanoes National Park: Volcano park on the Big Island.
• Honolulu Zoo: Zoo in Honolulu, on the island of Oahu.
• Kilauea: Active volcano on the Big Island.
• Lanikai Beach: Beach in Kailua, on the island of Oahu.
• Kualoa Ranch: Natural reserve and cattle ranch in Kaneohe, on the island of Oahu.
• Mauna Kea: Dormant volcano on the Big Island.
• Pearl Harbor: Sea harbor and historical landmark on the island of Oahu.
• Polynesian Cultural Center: Theme park in Laie, on the island of Oahu.
• Road to Hana: Scenic road that connects the towns Kahului and Hana on the island of Maui.
• Turtle Bay Resort: Resort hotel in Kahuku, on the island of Oahu.
• USS Arizona: Historic battleship in Honolulu, on the island of Oahu.
• USS Missouri: Historic battleship in Honolulu, on the island of Oahu.
• Waikiki Beach: Beach in Honolulu, on the island of Oahu.