Hawaii's Sales Tax Rate, Explained
Hawaii does not have a sales tax in the traditional sense. It has a general excise tax, a 4% levy on business gross income that sellers pass to customers as a separately stated charge. On your receipt it looks like a sales tax, and for shoppers it works like one.
Honolulu adds a 0.5% county surcharge, bringing Oahu's total to 4.712%, while the other islands sit at 4.5% or 4.0%. The statewide average combined rate is about 4.50%. The rate looks low, but the tax base is enormous, which is the real story. Our Alaska Sales Tax Calculator covers the other non-contiguous state, where the approach is the opposite: no statewide tax at all.
What's Taxed and What's Exempt in Hawaii
Almost everything is subject to the GET: retail goods, restaurant meals, hotel rooms, and, unusually, most services. Legal fees, accounting, landscaping, and even rent payments can carry the tax, because it applies to business revenue rather than just retail sales.
Groceries are fully taxed under the GET, with no exemption for food. Prescription drugs are taxed too, which surprises newcomers from the mainland. The tax also pyramids, meaning it can apply at multiple stages of production, quietly compounding the final price beyond the stated rate.
Worked Example: A $1,000 Purchase in Honolulu
A $1,000 appliance bought in Honolulu is taxed at 4.712%: $1,000 x 4.712% = $47.12 in tax, for a $1,047.12 total. The 4% state GET plus the 0.5% county surcharge, with a small compounding effect, make up the full amount.
| Item | Amount |
| Purchase price | $1,000.00 |
| Hawaii combined rate (Honolulu) | 4.712% |
| Sales tax | $47.12 |
| Total at checkout | $1,047.12 |
A $200 grocery run in Honolulu carries the same 4.712%, about $9.42, because food gets no exemption. The calculator above applies the GET the same way to every category.
Local Taxes: How Hawaii's Total Adds Up
Hawaii's counties can add a surcharge of up to 0.5% on top of the 4% GET. Honolulu uses the full 0.5% to fund its rail transit project, which is why Oahu's 4.712% exceeds the other islands.
The other counties have been slower to adopt the surcharge, so Kauai, Maui, and Hawaii Island generally sit at or near 4.5%. There are no city-level add-ons beyond the county surcharge.
Online Shopping and Marketplace Rules in Hawaii
Hawaii's economic nexus threshold is $100,000 in sales or 200 transactions. Marketplace facilitators must collect the GET on facilitated sales, so online orders show the tax at checkout.
Because the GET applies so broadly, most online purchases into Hawaii are taxable, including digital goods and many services. The destination rate follows your island and county.
Sales Tax Holidays in Hawaii
Hawaii does not offer a sales tax holiday. The GET's broad base and the state's reliance on it for revenue make a holiday unlikely, and none has ever been enacted.
Shoppers get no annual break on any category. The practical advice is simply that Hawaii's stated rate is low while its effective burden runs higher through pyramiding, so comparing sticker prices matters more than waiting for a holiday.
Frequently Asked Questions
Does Hawaii have a sales tax?
Not technically. Hawaii levies a 4% general excise tax on business revenue, which sellers pass to customers. It functions like a sales tax at the register.
What is the sales tax rate in Honolulu?
The combined GET rate on Oahu is 4.712%, including the 0.5% county surcharge. The other islands are generally 4% to 4.5%.
Are groceries taxed in Hawaii?
Yes. Groceries are fully subject to the general excise tax with no food exemption.
Are services taxed in Hawaii?
Most are. The GET applies to service revenue as well as retail sales, which is unusual compared with mainland states.
Does Hawaii tax online purchases?
Yes. Remote sellers over $100,000 in sales or 200 transactions must collect, and marketplace facilitators collect the GET at checkout.
Does Hawaii have a sales tax holiday?
No. Hawaii has never offered one.
Related Hawaii and Sales Tax Tools
Check your take-home pay with the Hawaii Paycheck Calculator, since sales tax hits harder when budgets are tight, or estimate a big purchase with our Car Loan Calculator. Compare rates with the main Sales Tax Calculator or browse more free tools at USACalculator.
Hawaii rate snapshot (4% general excise tax, 4.50% average combined). Sources: Tax Foundation, State and Local Sales Tax Rates Midyear 2026. Figures reviewed for 2026. This calculator provides an estimate for planning purposes and is not tax advice.