On gross income, gross receipts, or gross proceeds of all business activities at following rates:

4% (4.5% in all counties except Maui) on retail sale of goods, sale of services, contracting, commissions, rent, interest, and other activities.

0.5% on wholesaling, selected intermediary services, manufacturing, producing, real property subleasing, canning and blind, deaf or totally disabled persons;

0.15% on insurance solicitors.

Gross income from tangible personal property, contracting, and services exported out of the state are exempt.

This tax covers goods, services, rent, royalties, and many other types of income that a typical sales tax will not cover.  The tax is also imposed directly on the seller, meaning that the seller does not need to pass on tax to the buyer but if the seller does. the additional proceeds collected are taxable as well.

Distribution: State general fund.

SOURCE: Compiled by the Tax Foundation of Hawaii from the Hawaii Revised Statutes, as amended through the 2020 legislative session, and Revised Ordinances for various counties. Consult the statute, ordinance, rules, or regulations for specific cases or circumstances.

Last Revised: August 18, 2021

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