What Is Hawaii General Excise Tax? Your Essential Guide

Mckayla Braun 05 Aug 2025

Planning your escape to the Hawaiian Islands, perhaps dreaming of exotic beaches, scenic waterfalls, or enjoying snorkeling with dolphins? It's easy to get caught up in the allure of Hawaii's rich native culture, its fascinating customs, and the adventure of a lifetime waiting for you. As you gather travel information and prepare for your journey to this unique and unforgettable place, there's a practical side to consider, too.

Hawaii is truly different, a special place, very much unlike any other U.S. state. It's the southernmost U.S. state and the second westernmost after Alaska, and, well, it's the only U.S. state not in North America, as it is in the middle of the Pacific Ocean. While you're busy creating your Hawaii bucket list, thinking about everything from morning snorkeling to sunset views, it’s also a good idea to understand a bit about how things work here, especially when it comes to money matters.

One of the things that sets Hawaii apart financially is its General Excise Tax, often called GET. This is a topic that sometimes causes a little bit of confusion for visitors and new residents alike, so, you know, let's clear things up. Knowing about the GET can help you better plan your perfect vacation to the Hawaiian Islands, or even if you're thinking of making Hawaii your new home, it helps to understand this important part of the state's economic structure.

What is Hawaii General Excise Tax?
- GET Versus Sales Tax: A Key Difference
- Why Hawaii Uses GET Instead of Sales Tax
How the GET Works: Rates and Application
Who Pays and Who Collects the GET?
Impact on Your Hawaii Experience
- For Visitors and Travelers
- For Residents and Businesses
Frequently Asked Questions About Hawaii GET

What is Hawaii General Excise Tax?

The Hawaii General Excise Tax, or GET, is a rather broad-based tax on nearly all business activities within the state. Unlike a typical sales tax you might find in other places, the GET is imposed on the gross income or receipts of businesses. This means businesses pay the tax on what they earn from selling goods, providing services, renting properties, and even from wholesale transactions. It’s, well, a bit different in how it's applied compared to what many people expect.

When you find travel information about the island of Hawaii, including activities, lodging, and dining, or perhaps explore things to do on Oahu, like surfing or visiting museums, the prices you see for goods and services will often include the GET, or it will be added on top. This is because businesses, to cover their own tax burden, often pass the cost of the GET along to the consumer. So, while you're enjoying all the fun and excitement in Honolulu, Hawaii, during your next vacation, including dining and shopping, you're indirectly contributing to the state's revenue through this tax.

GET Versus Sales Tax: A Key Difference

This is a really important point, and it’s where many people get a little mixed up. The Hawaii GET is not a sales tax. A sales tax is typically collected from the consumer at the final point of sale and then sent to the government. It’s a tax on the buyer, essentially. But the GET, it's actually a tax on the business for the privilege of doing business in Hawaii. This means that, you know, the business itself owes the tax on its gross income.

Because businesses generally don't want to absorb this cost, they almost always pass it on to the customer. So, when you buy something, you might see "GET" listed as a separate line item on your receipt, or it could just be factored into the price. This makes it feel very much like a sales tax, but legally, it's different. This distinction matters for businesses especially, as it affects how they calculate their taxable income and report it to the state.

Why Hawaii Uses GET Instead of Sales Tax

The reason Hawaii uses the GET system dates back many years, a bit of history here. When the tax was first put into place, it was seen as a way to capture revenue from all economic activity, not just retail sales. This broad approach means that the state collects tax at multiple stages of a product or service's journey, from production to wholesale to final retail. It's a way to ensure a very wide tax base, which, in some respects, can make the state's revenue stream more stable.

For a state like Hawaii, which is a group of eight major volcanic islands and 124 islets, and very much relies on tourism and imports, a broad-based tax like the GET can be an effective way to fund public services. It means that, you know, even if you are just planning your perfect trip to the Hawaiian Islands, your spending contributes to the state's operations. This system has been in place for a long time, and it's just how things work here, so it's good to be aware of it.

How the GET Works: Rates and Application

The General Excise Tax applies to nearly every commercial activity in Hawaii, and the rates can vary a little bit depending on the type of business. It’s not just one flat rate for everything, which can be a bit surprising for some. Understanding these different rates helps to explain why some things might feel a little more expensive than you expected.

Standard GET Rates

Generally, there are a few main rates for the GET. For wholesale sales, manufacturing, producing, and certain other activities, the rate is quite low, usually 0.5%. This lower rate is because these activities are often part of a longer chain of commerce, and the tax will be applied again later. However, for most retail sales, services, rentals, and professional activities, the rate is 4%. So, when you're looking at lodging, dining, or activities on the island of Hawaii or Oahu, that 4% rate is what typically applies to those services.

This means that whether you're enjoying a meal, booking a place to stay, or paying for an adventure like swimming with dolphins, a portion of that cost goes towards the GET. It's just part of the price of doing business and enjoying the beauty and adventures waiting for you on the Hawaiian Islands. This system, in a way, helps the state manage its finances and provide services for its residents and visitors.

County Surcharges: Adding a Local Touch

On top of the state's standard GET rates, some counties in Hawaii have also added a county surcharge. This means that the effective GET rate can be slightly higher in certain areas. For example, on Oahu, Maui, Kauai, and the Big Island, there's usually an additional 0.5% county surcharge. So, a 4% state GET rate might become 4.5% when you factor in the county's portion. This extra bit helps fund local county projects and services, which is pretty common in many places.

When you're finding more information about things to do on Oahu, including surfing, museums, hiking, or snorkeling, or planning your dream vacation on Maui, Kauai, or the Big Island, you might notice this slight increase. It's a small percentage, but it does add up, and it's just another detail that makes Hawaii's tax structure unique. Knowing this helps you better estimate costs when you're planning your trip and making your journey to Hawaiʻi.

The Pyramiding Effect: What It Means for You

Because the GET is applied at multiple stages of business activity, it can sometimes lead to what's called a "pyramiding" effect. This happens when the tax is paid by one business, then passed on to another business, which then pays the tax again on its gross receipts, and so on, until it reaches the final consumer. Each business in the chain typically adds the GET to its price, meaning the final customer might indirectly pay a bit more than just the stated rate.

For example, a wholesaler pays GET, then a retailer buys from them and pays GET on their total sales, which includes the wholesaler's GET. To account for this, many businesses will charge an effective GET rate that is slightly higher than the nominal rate, often around 4.712% for the 4% state rate plus county surcharge. This helps them cover the GET they paid to their suppliers. So, you know, when you see a line item for GET on a receipt, it might be a little higher than 4.5%, and this pyramiding effect is why.

Who Pays and Who Collects the GET?

The Hawaii General Excise Tax is, as a matter of fact, primarily a tax on the business. Businesses are responsible for collecting the GET from their customers and remitting it to the Hawaii Department of Taxation. This applies to a very wide range of businesses, from the small local shops you might discover while exploring the culture and adventures of the islands, to large resorts where you might find lodging and dining.

So, when you purchase goods or services in Hawaii, you, the consumer, are usually the one who ultimately bears the cost of the GET. The business selling you the item or service has already factored that tax into its pricing or adds it on at the point of sale. This makes it feel like a sales tax to the end user, but it's the business that has the legal obligation to report and pay the tax to the state. This system is a core part of how Hawaii funds its public services, from maintaining roads to supporting schools and other vital programs.

Impact on Your Hawaii Experience

Understanding the GET can help you better plan your finances, whether you're just visiting or thinking about moving to the islands. It's a small but significant part of the economic landscape here.

For Visitors and Travelers

For those visiting Hawaii, the GET means that almost everything you buy or any service you use will have this tax applied. This includes your hotel stays, meals at restaurants, souvenirs from shops, and even the cost of activities like surfing lessons or guided tours. It’s just part of the price of experiencing the best Hawaii has to offer.

When you're trying to experience the best Hawaii has to offer without spending a fortune, reading tips before you travel to Hawaii can be really helpful. Knowing about the GET means you can factor it into your budget, making sure there are no surprises. It's not a huge amount, but it’s something to consider when planning your dream vacation and recreational activities. You know, it's just part of the overall cost of enjoying Hawaii's unmatched beaches, volcanoes, and forests.

For Residents and Businesses

For residents and anyone considering starting a business in Hawaii, the GET is a very important part of daily life and operations. Businesses need to register with the state and regularly file GET returns, reporting their gross income and remitting the tax collected. This is a continuous obligation that affects pricing strategies and financial planning.

If you're thinking about living or working here, perhaps finding a new home on the island of Hawaii or Oahu, understanding your GET obligations is pretty essential. It's a different system from many other states, and businesses must be careful to comply with the rules. The state of Hawaiʻi, under its current governor who was sworn in on Dec 5, 2022, continues to manage this system as a primary source of revenue. It's a fundamental aspect of the state's financial framework.

Frequently Asked Questions About Hawaii GET

Is Hawaii GET a sales tax?

No, the Hawaii General Excise Tax (GET) is not a sales tax. It's a tax on the gross receipts of businesses for the privilege of doing business in Hawaii. While businesses often pass the cost of the GET on to the consumer, making it feel like a sales tax, it's legally a tax on the business itself, not on the final sale to the customer. This is a pretty important distinction, you know, for how it's applied and reported.

Who pays the GET in Hawaii?

The business is legally obligated to pay the GET to the state of Hawaii. However, businesses typically pass this cost on to their customers by either including it in the price of goods and services or adding it as a separate line item on receipts. So, while the business is the one remitting the tax, the consumer is usually the one who ultimately bears the financial burden.

What is the current GET rate in Hawaii?

The standard state GET rate for most retail sales and services is 4%. Additionally, several counties, including Oahu, Maui, Kauai, and the Big Island, have a 0.5% county surcharge, bringing the effective rate to 4.5%. Because of the "pyramiding" effect, where the tax is applied at multiple stages, businesses may charge an effective rate slightly higher, often around 4.712%, to cover their costs. For more detailed and current information, you could check the official Hawaii Department of Taxation website.

Learn more about travel planning on our site, and link to this page Hawaii's unique aspects.

Nicole Kidman - Wikipedia, ìwé-ìmọ̀ ọ̀fẹ́

Ocimum gratissimum - Wikipedia, Njikotá édémédé nke onyobulạ

Martin Pugh (musician) - Wikipedia

Global Artist Buzz