On this page we are describing the sales taxes in the State of Hawaii, we aim to educate you on the differences that occur throughout the state so you get a better understanding of it in regards to whether you may have:

  • Have taken a Hawaii job in the are
  • Applied for a Hawaii school
  • Opened a Hawaii bank account in the state of Hawaii
  • People who may be unable to find their Social Security Card or have lost it.

What is the lowest and highest sales tax in Hawaii?

In the map of Hawaii is pictured below there are a total of 5 countries that are within the state. You can go directly to the page and see which area has the highest and lowest sales tax in your county of choice.

Hawaii Honolulu Kalawao Kauaʻi Maui
The state sales tax for businesses and so forth is a standard rate of 4% which allows the local government to be able to collect up to another 0.5% on top of this:

  • the average sales tax for the entirety of Hawaii is 4.427%,
  • the highest is within the Kauai, Honolulu, Hawaii County that consists of Hilo, Kailua Kona, Keaau, Kamuela, Pahoa, Waikoloa, Kealakekua, Honolulu, Waipahu, Ewa Beach, Mililani, Kaneohe, Kapaa, Lihue, Koloa, Kalaheo, Kilauea and this equates to 4.5% sales tax,
  • the lowest sales tax is in the Kalawao, Maui which includes cities like Kalaupapa, Wailuku, Kahului, Kihei, Makawao, Haiku, Kula, Kaunakakai and the sales tax in these areas total to 4%

This is a brief overview, and we suggest that you go directly to the page if you wish to get a clearer image of the different ranges of sale tax in a particular county. Please note that the ones that have an asterisk means they are below the usual county level of sales tax.

How to calculate your own sales tax in the state of Hawaii.

So, what does this mean for you, if you are looking into how much sales tax you are going to charged dependant on what sort of county you are residing or working out of. You can go ahead and use a sales tax calculator which will give you a section that is exampled below.

 

$
-or- Specify Sales Tax Rate
-or- Specify ZIP Code
%

 

You do need to know the purchase ZIP code and purchase amount in order to get an accurate figure. For an example we will use the amount of $500 and see what the ranges could be from the highest area to the lowest.

In Honolulu, HI with the highest sales tax of 4.5% would mean that your $500 purchase would incur a $22.5 sales tax, taking the total amount to $522.5.

Whereas in Kalawao, HI the sales tax is only 4% and a $500 purchase would equate to $20 tax, taking the total to $520.

The sales tax calculator makes it as easy as it can be to find out what sort of sales tax you will be charged by simply adding the amount and the ZIP code. Though there might be some purchases that are exempt from sales taxes or have some special leniency which do need to be taken into consideration.

City Sales Tax Rate Zip-code Population
Honolulu 4.50% 96801, 96802, 96803, 96804, 96805, 96806, 96807, 96808, 96809, 96810, 96811, 96812, 96813, 96814, 96815, 96816, 96817, 96818, 96819, 96820, 96821, 96822, 96823, 96824, 96825, 96826, 96828, 96830, 96836, 96837, 96839, 96843, 96844, 96848, 96850 328406
Waipahu 4.50% 96797 60366
Ewa Beach 4.50% 96706 48268
Mililani 4.50% 96789 46664
Kaneohe 4.50% 96744 46556
Hilo 4.50% 96720, 96721 40279
Kailua 4.50% 96734 40200
Aiea 4.50% 96701 35697
Waianae 4.50% 96792 33249
Pearl City 4.50% 96782 32267
Wahiawa 4.50% 96786 29939
Kapolei 4.50% 96707, 96709 29472
Kailua Kona 4.50% 96740, 96745 25373
Wailuku 4.00% 96793 22792
Kahului 4.00% 96732, 96733 20770
Kihei 4.00% 96753 19553
Lahaina 4.00% 96761, 96767 17333
Kapaa 4.50% 96746 13416
Lihue 4.50% 96766 12848
Makawao 4.00% 96768 12697
Keaau 4.50% 96749 10325
Kamuela 4.50% 96743 9807
Pahoa 4.50% 96778 8045
Waimanalo 4.50% 96795 7968
Waialua 4.50% 96791 6091
Haiku 4.00% 96708 6042
Kula 4.00% 96790 5940
Haleiwa 4.50% 96712 5538
Waikoloa 4.50% 96738 5054
Kealakekua 4.50% 96750 4514
Laie 4.50% 96762 4137
Honokaa 4.50% 96727 4102
Koloa 4.50% 96756 3999
Kalaheo 4.50% 96741 3885
Kaunakakai 4.00% 96748 3479
Captain Cook 4.50% 96704 3442
Paia 4.00% 96779 3245
Hauula 4.50% 96717 3161
Kapaau 4.50% 96755 3148
Kilauea 4.50% 96754 2888
Lanai City 4.00% 96763 2595
M C B H Kaneohe Bay 4.50% 96863 2556
Mountain View 4.50% 96771 2490
Holualoa 4.50% 96725 2430
Kekaha 4.50% 96752 2396
Kahuku 4.50% 96731 2303
Kurtistown 4.50% 96760 2271
Eleele 4.50% 96705 2101
Lawai 4.50% 96765 2042
Hanapepe 4.50% 96716 1836

Why do I need to collect sales tax in Hawaii?

You will need to collect sales tax if you have any sort of nexus there, and what this means is that if you have assets that are physical or economic then you need to do this.

Physical meaning having a tangible activity or some sort of presence in any of the states of Hawaii, economic nexus is simply passing the states’ economic threshold for total revenue, or the maximum number of transactions that can occur in the period of time within the state.

Two easy ways to see if you have either a physical or economic nexus in any of the counties is the following:
Physical:

  • Tangible personal property
  • Business assets or property
  • Own, renting properties
  • Made more than $500,000 in a service or content delivery in the state

Economic:

  • Made more than $100,000 in sales annually
  • More than 200 transactions in the last calendar year

How do I get a sales tax permit?

The main way to go about this is to register online at the Hawaii Business Gateway. Follow the steps that are presented to you and ensure that you have the following to hand to use as information:

  • Business identification information
  • Business entity
  • Location/s that you will be conducting this from
  • Date you will start collecting Hawaii sales tax from a business/property
  • NAICS Code (North American Industry Classification System.)

What is the best way to file sales taxes?

Before you think of doing anything else there are three things that we recommend that you do in order to make this process as easy and smooth as possible.

First of all, find out how much tax you owe (remember the sales tax calculator we mentioned before) so that you know how much you need to pay the state at the end. Second is get onto the Hawaii Department Of Taxation ready to submit them, and third have the money ready so you can make the payment straight away.

There are two main options as well to filing and paying your Hawaii sales tax, these are:

  • Filing online. This is where merchants are required to file all of their sales taxes through the department of taxation in the state of Hawaii, you can also pay your taxes on this platform, so it is one to keep close to you for future reference.
  • Filing by mail. Simply fill out the form UST-1, but this is not the recommended way of filing your taxes due to the possibilities of them getting lost in the post and then it could mean that you are subject to late fees if they are not filed within the allotted time.

We hope this document was able to allow you to feel more confident when it comes to sales tax in the state of Hawaii depending on where you operate out of.