taxes & business costs
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)
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.
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%.
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.
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
Hawaii’s workers compensation premium rates are lower than California, Florida, Texas and New York, as well as several other states.