Taxes & Business Costs

Maui County taxation and business costs are summarized below:

General Excise Tax

Hawaii does not have a sales tax, but collects a general excise tax on the gross income, receipts or proceeds of all business activities at the following rates:

  • 0.15% on insurance commission
  • 0.50% on wholesaling, manufacturing, producing, wholesale services and use tax on imports for resale
  • 4.166% on retail sale of goods, sale of services, contracting, commissions, rent, interest and other activities.  (4.712% on Oahu)

Property Tax
In Hawaii, personal property is not subject to taxation; real property, land and improvements are assessed by the County of Maui.  Significant property tax advantages include a$300,000 owner-occupied home tax exemption.  For more information go to the County of Maui Real Property Tax Division.

 

Transient Accommodations Tax
Gross rental income that is earned from providing accommodations that are occupied for less than 180 consecutive days is assessed a transient accommodations tax (TAT) of 7.25%.

 

Unemployment Compensation

Hawaii’s unemployment compensation tax rate is determined by a multi-contribution schedule, whereby an employer’s contribution rate varies between 0% and 5.4%. In addition, employers pay a .05% employment and training fund assessment on taxable wages paid to employees.

 

Use Tax
Personal property that is imported or purchased from an out-of-state seller for use or further sale in Hawaii is assessed a use tax at the following rates:

  • 0.5% on imported goods for retail
  • 4% on all other imports

Worker’s Compensation
Hawaii’s workers compensation premium rates are lower than California, Florida, Texas and New York, as well as several other states.