Sales Tax and Reverse Sales Tax Calculator Hawaii

HAWAII [Multidirectional Calculator]
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  • 4.25%
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  • Amount Before Tax ${{amountBeforeTax}}
  • Sales Tax Rate {{SalesTaxRate}}%
  • Amount Of Taxes ${{AmountOfTaxes}}
  • Amount After Taxes ${{AmountAfterTaxes}}



Hawaii – HI Sales Tax Calculator: User Guide

Hawaii, also called Aloha State, is a US state located in the Pacific Ocean. It is the only island state of US, comprises of 137 islands spread over 1,500 miles (2,400 km).

The state has several business opportunities, especially in tourism and hospitality. So if you are planning to relocate, expand, or start your business in Hawaii, then this guide is just for you.

Our experts have compiled an amazing guide along with a state-of-the-art Hawaii Sales Tax Calculator to educate you about all the essentials related to Sales Tax.

So let's get started!

Hawaii Sales Tax Facts:

  • Hawaii State doesn't have a sales tax. However, they charged General Excise Tax (GET), which works almost similar to sales tax except it is charged to business instead of the end consumer. However, businesses are allowed to pass the portion or all of it to their customers. Moreover, unlike sales tax in other states, GET is charged on almost all tangible and non-tangible products and services as well as items bought for resale.
  • Businesses are even allowed to pass on the Excise tax on to the customers even on slightly higher rates but with a maximum rate of 4.712% in Honolulu County and 4.166% elsewhere in Hawaii.
  • The state-wide sales tax rate in Hawaii is 4%.
  • On the top of State sales tax, several counties levy local sales tax ranging from 0% to 0.5%.
  • No city or and/or municipalities levy local sales tax.
  • Haiku, Hawaii is among cities with levy lowest possible combined sales tax of 4%.
  • Aiea, Hawaii, is among cities that levy the highest possible combined sales tax of 4.5%.
  • Honolulu's combined Sales tax rate may differ according to the type of purchases.
  • Both tangible and non-tangible products and services purchased from other states but used in Hawaii are also subjected to Use Tax, which is charged at the same rate as General Excise Tax (GET).
  • Prescription drugs and prosthetic devices are from Sales tax (General Excise Tax (GET) actually!) in Hawaii.
  • Hawaii has a Destination-based Sales Tax (GET Tax), so it will be charged according to the buyer's shipping address in Hawaii.

How to calculate Sales Tax in Hawaii?

Businesses and Sellers that sell, transfer, barter, license, lease, rent, use, or otherwise consume taxable tangible personal property and have Nexus in Hawaii are required to register for Sales tax (General Excise Tax (GET)). They are required to collect, manage, and remit it to the Hawaii Department of Taxation while staying in compliance with state laws and avoid penalties and interest.

The sales tax determined on four factors:

  1. Nexus: It is a connection of business with a state. The business is only liable to pay taxes to the states with Nexus.
  2. Seller's Eligibility: Seller is only required to register, collect, and remit the sales tax to the authorities in the state if it falls under the criteria provided by the state.
  3. Location and Products or Services: The sales tax rate varies from product to product and location to location, so you must check the sales tax rate applicable to your product according to the product category, county, and city in Hawaii.
  4. Exemptions: Almost all goods are eligible for sales tax regulation. However, maybe some products that are exempted under Hawaii Law. So you should check with Hawaii state government as to which goods and services sold in Hawaii are subject to sales tax.

To calculate Sales Tax in Hawaii, follow the steps below:

Step 1 – Determine your Nexus:

You, as a Business owner, are only required to collect sales tax if you are eligible for collecting sales tax and have Sales Tax Nexus in the Hawaii State. And to determine your Nexus in Hawaii, you must have any of the following:

  • A physical location like office, warehouse, retail store, or other places of business.
  • An employee working remotely or on-site for you in this Hawaii.
  • A marketing affiliate
  • Drop-shippingfrom a third party seller.
  • A temporary physical location like on convention or trade shows in Hawaii.
  • Providing services in the state

Step 2 – Determine the eligibility to collect sales tax as an out-of-state seller:

Out of State Seller is eligible to register, collect and remit sales tax (GET Tax) under Hawaii Law, if:

  1. The seller has gross revenue exceeding $100,000 from sales in Hawaii in the previous or current calendar year.
  2. OR, Makes 200 or more sales in the previous or current calendar year from sales in Hawaii.

Step 3 – Determine the Sales Tax Rate:

Once you have determined that your Nexus is with Hawaii, next is to deduce the Sales Tax (GET Tax) rate (State + Local Sales Tax) applicable on your product, for which you can refer the tables below:

Hawaii Sales Tax Rates by Location:

The state-wide Sales Tax (General Excise Tax) rate in Hawaii is 4%. Besides, many counties levy additional local sales tax on sales of almost all goods and services. Following are the Sales Tax (General Excise Tax) rate on State, County, and city level in Hawaii:

City
Total Sales Tax Rate
Halawa, HI Sales Tax Rate 4.250%
Hawaiian Paradise Park, HI Sales Tax Rate 4.250%
Hilo, HI Sales Tax Rate 4.250%
Honolulu, HI Sales Tax Rate 4.500%
Hālawa Heights, HI Sales Tax Rate 4.500%
Kahului, HI Sales Tax Rate 4.000%
Kailua-Kona, HI Sales Tax Rate 4.500%
Kalaoa, HI Sales Tax Rate 4.250%
Kaneohe Station, HI Sales Tax Rate 4.500%
Kapa‘a, HI Sales Tax Rate 4.500%
Kāne‘ohe, HI Sales Tax Rate 4.500%
Kīhei, HI Sales Tax Rate 4.000%
Lahaina, HI Sales Tax Rate 4.000%
Makakilo, HI Sales Tax Rate 4.500%
Makakilo City, HI Sales Tax Rate 4.500%
Mililani Town, HI Sales Tax Rate 4.500%
Mā‘ili, HI Sales Tax Rate 4.500%
Nānākuli, HI Sales Tax Rate 4.500%
Pearl City, HI Sales Tax Rate 4.500%
Royal Kunia, HI Sales Tax Rate 4.500%
Schofield Barracks, HI Sales Tax Rate 4.500%
Village Park, HI Sales Tax Rate 4.500%
Wahiawā, HI Sales Tax Rate 4.500%
Wailuku, HI Sales Tax Rate 4.000%
Waimalu, HI Sales Tax Rate 4.500%
Waipahu, HI Sales Tax Rate 4.500%
Waipi‘o, HI Sales Tax Rate 4.500%
Wai‘anae, HI Sales Tax Rate 4.500%
‘Ewa Beach, HI Sales Tax Rate 4.500%
‘Ewa Gentry, HI Sales Tax Rate 4.500%

Step 4 – Calculate Sales Tax:

After the determination of the Sales Tax rate according to the location and type of purchases, it is easy to calculate the sales tax amount charged on the product and gross price (amount after tax) of a product.

Example # 1:

For instance, you are a sell a Handbag on your store in Barbers Point NAS, Hawaii, having a net cost of $40. The amount of General Excise Tax that you have to pay on the handbag would be:

Manual Method:

Net Price (amount before Tax) of a Handbag: $40

Total Sales Tax (GET Tax) rate: 0.00% (Barbers Point NAS) + 0.500% (Honolulu County) + 4.00% (Hawaii State) = 4.50%


Total Sales Tax (GET Tax) amount = $40 x 4.50% = $1.80

Gross Price (Amount after Tax) = 40 + 1.80 = $41.80


So the GET Tax amount charged on the handbag would be $1.80, raising the gross cost of a handbag to $41.80.


Using our Sales Tax Calculator:

All of the steps mentioned above can be skipped to get an instant result using our Sales Tax Calculator. All you need is:

  1. Input the $40 Net Price of a Handbag as Amount Before Tax
  2. Input or select 50% of the combined Sales Tax rate on the Tax Rate menu.

Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the image below:

hawaii-sales-tax-calculator

Reverse Sales Tax Calculation

In the example above, we have explained to you to calculate the Sales Tax amount payable in a product, and the Gross Price of the Product.

But there are also instances when you are required to deduce how much general excise tax you have actually paid on a product in Hawaii.

This is where the Reverse Sales Tax Calculation Kicks in. And luckily, our Hawaii Sales Tax Calculator can perform this calculation like a Pro.

Example:

The gross cost (amount after tax) of a Portable Speaker is $200, which you sell on your store in Fern Acres, Hawaii. Now if you want to deduce the amount of excise tax you have actually paid on it as well as net cost (amount before tax) of a Portable Speaker, then can follow the steps below:

Gross Price (Amount after Tax) of Portable Speakers: $200

Total Sales Tax rate: 0.00% (Fern Acres) + 0.250% (Hawaii County) + 4.00% (Hawaii State) = 4.250%


Manual Method:

Gross Price with sales tax (Excise Tax) = [Net Price × (tax rate in decimal form + 1)]

200 = [Net Price x ((4.25/100) + 1)]

200 = Net Price x 1.04

$192.3 = Net Price


So the original Price (net price) of the Portable Speakers would be $208.3.

Using our Sales Tax Calculator:

You can also use our Sales Tax Calculator for Reverse Sales Tax calculation to skip the above mentioned manual method. All you need is:

  1. Input the $200 Gross Price of Portable Speakers as Amount after Tax
  2. Input or select 4.25% of combined Sales Tax Rate on the Tax Rate

Our calculator will automatically calculate the result and represents it in 3 different forms.

Also Check: Hawaii Paycheck Calculator to Calculate your Paycheck in Hawaii State including all taxes and take home pay.

FAQs

Answer: Hawaii State doesn't levy Sales Tax. However, it charged General Excise tax at the rate of 4% on the state level, which is charged on the business instead of the end consumers. On the top of state-wide General Excise tax, many counties in Hawaii also levy local excise tax.

Answer: Hawaii State doesn't levy sales tax on services. However, they charge General Excise Tax on almost all services provided in Hawaii.

Answer: Yes, Groceries are fully taxed in Hawaii.

Answer: The General Excise (GE) Tax rate charged on the state level in Hawaii is 4%. Besides, many counties are also allowed to levy their own rates ranging between 0% and 0.5%.

Answer: Businesses and Sellers that sell, transfer, barter, license, lease, rent, use or otherwise consume taxable tangible personal property and have Nexus in Hawaii are required to pay Sales tax (General Excise Tax (GET)).

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