Services include professional services provided by lawyers, architects, landscapers, etc. The definition can be pretty wide, and many exemptions can apply. Your best bet would be to check with Hawaii Department of Revenue to confirm your service is even taxable.
What is the current GET tax rate in Hawaii?
What is Hawaii’s sales tax rate? Hawaii does not have a sales tax; instead, we have the GET, which is assessed on all business activities. The tax rate is 0.15% for Insurance Commission, 0.5% for Wholesaling, Manufacturing, Producing, Wholesale Services, and Use Tax on Imports For Resale, and 4% for all others.
Is tax paid on freight costs to Hawaii?
Hawaii: Hawaii’s general excise tax (GET) is a privilege tax imposed on business activity in Hawaii. It generally applies to most transactions, including most shipping and handling fees. In the rare event a sale is exempt, related shipping charges would generally be exempt.
What is the general tax rate in Hawaii?
Passing Hawaii GE Tax to Your Customers. As of the 2019 update, you probably already know that for most businesses in Hawaii the General Excise Tax rate is 4%, with a 0.5% surcharge on Oahu and Kauai, and a 0.25% surcharge on the big island. (please note that certain industries pay different rates).
Are there any tax deductions for living in Hawaii?
Unlike many other states, Hawaii has no standard deduction. Certain itemized deductions (including property tax, qualified charitable contributions, etc) may be allowed depending on the income level and filing type of the taxpayer.
Do you pay excise tax on sales in Hawaii?
Say we have a business in Honolulu selling artwork. We make 10 sales at $100 per sale, collecting $1000. If we add 4.5% to our customer’s bill, we would have collected $1045. This becomes our gross sales, and this amount is subject to the excise tax. When we go to pay our GE Tax bill to the state, we end up multiplying our gross sales by 4.5%.
How much does GE tax cost in Hawaii?
When we go to pay our GE Tax bill to the state, we end up multiplying our gross sales by 4.5%. In this case it would be $1045 * 0.045 which is $47.03. See the problem? We collected $45 from the customer to cover our GE Tax expense but we paid $47 to the State of Hawaii.
