Hawaii General Excise Tax (GET): What It Is and How to File

As a small business owner in Hawaii, understanding the General Excise Tax (GET) is crucial for staying compliant. Whether you are just starting or looking for ways to simplify your tax obligations, accounting services in Hawaii can help guide you through the process. 

Here’s an overview of GET, how it works, and the steps you need to take to file.

What Is Hawaii’s General Excise Tax (GET)?

The General Excise Tax (GET) is Hawaii’s primary business tax, applied to nearly all business activities in the state. Unlike sales tax, GET is assessed on gross income, not just profit, making it applicable to all business revenue, whether or not the business is profitable. Here’s what you need to know:

• Base rate: 4% statewide, with an additional 0.5% surcharge in certain counties, bringing the total to 4.5%.

• What it covers: GET is applied to the sale of goods, services, leases, rentals, and some digital products. However, certain exemptions exist, such as for prescription medications and medical services.

• Difference from sales tax: Unlike traditional sales tax, GET is paid on the gross revenue of your business, not just the profit. This means that businesses of all sizes need to carefully track their total income to ensure proper compliance.

Who Needs to Pay GET and How to Register

Virtually all businesses operating in Hawaii are required to pay GET, including retailers, service providers, contractors, and wholesalers. Even out-of-state businesses with income sourced to Hawaii may be subject to GET.

How to Register:

If your business falls under these categories, here’s how to register:

1. Form BB-1: Complete this form to apply for a State Tax Identification Number.

2. Registration fee: There is a $20 registration fee.

3. How to register: You can register online via the Hawaiʻi Tax Online portal or submit the forms on paper.

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How to File GET Returns

The frequency with which you must file GET returns depends on your business’s total GET liability. Here’s a quick breakdown of the filing schedule:

• Monthly: If your business owes more than $4,000 in GET per year, you must file monthly. Returns are due by the 20th of the following month.

• Quarterly: If your liability is between $1,000 and $3,999 per year, you file quarterly. Returns are due on the 20th of the month following each quarter.

• Semiannual: For liabilities under $1,000, businesses can file semiannually, due on July 20 and January 20.

• Annual: If your liability is $1,000 or less, you must file by January 20 of the following year.

Filing Forms:

To submit your GET returns, you’ll need to use these forms:

• Form G-45: This form is used for monthly, quarterly, or semiannual filings.

• Form G-49: This is the Annual Return and Reconciliation form, used for yearly filings.

The Hawaii Tax Online portal is where most businesses are required to file electronically. If needed, you can also file by mail.

Summary

Hawaii’s General Excise Tax (GET) is a key tax for all businesses operating in the state, applied to gross income rather than just profit. The base rate is 4%, with certain counties adding a 0.5% surcharge. To stay compliant, businesses must register through Form BB-1 and pay a $20 registration fee. Depending on their liability, businesses must file monthly, quarterly, semiannually, or annually.

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