How much sales tax in Hawaii?

**In Hawaii, there is only a General Excise Tax (GET) instead of a traditional sales tax. The GET rate is typically 4.5% for most businesses, but it can vary depending on the type of business and transactions.**

1. What is the General Excise Tax (GET) in Hawaii?

The General Excise Tax in Hawaii is a tax on the gross income received by businesses in the state. It is a bit different from a traditional sales tax as it taxes the business itself rather than the consumer.

2. How does the GET rate vary for different businesses in Hawaii?

The standard GET rate in Hawaii is 4.5%, but certain businesses, like retail sellers or service providers, may have different rates that can be higher or lower.

3. Are there any exemptions from the GET in Hawaii?

Yes, certain activities such as wholesale transactions, subleases of real property, and certain nonprofit organizations are exempt from the General Excise Tax.

4. How does the GET affect consumers in Hawaii?

Consumers in Hawaii may indirectly bear the burden of the GET as businesses may pass on the cost of the tax to them through higher prices.

5. Do tourists in Hawaii have to pay the GET?

Yes, tourists in Hawaii are subject to the General Excise Tax on their purchases, just like residents.

6. Can businesses choose not to pass on the GET to consumers?

Businesses are not required to separately state the GET on receipts, but they must include it in the overall price of goods or services.

7. How does the GET in Hawaii compare to sales taxes in other states?

The General Excise Tax in Hawaii is often considered to be more burdensome for businesses compared to traditional sales taxes in other states due to its broader application.

8. Are there any efforts to change the GET system in Hawaii?

There have been discussions and proposals to reform Hawaii’s tax system, including potentially converting the GET to a more traditional sales tax, but no significant changes have been made yet.

9. How does the GET impact small businesses in Hawaii?

Small businesses in Hawaii may find it challenging to navigate the General Excise Tax requirements and manage the additional costs associated with the tax.

10. Is the GET in Hawaii considered regressive or progressive?

The General Excise Tax in Hawaii is often deemed regressive as it applies to all levels of income and can disproportionately impact lower-income individuals.

11. Do online businesses operating in Hawaii have to pay the GET?

Yes, online businesses that operate in Hawaii and generate income from the state are generally required to pay the General Excise Tax.

12. How does the GET contribute to Hawaii’s state revenues?

The General Excise Tax is a significant source of revenue for Hawaii, helping fund various programs and services in the state.

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