At a glance
- Corporate tax
- 4.4%–6.4%
- Tax on wages
- 1.4%–11%
- Sales tax
- GET 4% (4.5% with county surcharge)
- Economic nexus
- $100,000 or 200 transactions
- Minimum wage
- $16.00/hr
- UI wage base
- $64,500
- New-employer UI rate
- 2.40%
- Paid leave program
- TDI, employee share up to 0.5% ($7.50/wk)
- Annual report
- Registration quarter, $15
2026 figures, each explained with its source on the area’s page. On top of the federal baseline.
Setup, in order
Register with DCCA
Before doing business in HawaiiRegister as a foreign corporation with DCCA’s Business Registration Division.
Register with DOTAX
Before the first Hawaii sale or payrollGet a Hawaii Tax ID and GET license from DOTAX (one-time $20), and a withholding account for employees.
Open a UI account
Before the first Hawaii payrollRegister with DLIR for unemployment insurance.
Get TDI and workers’ comp
Before the first employee startsArrange Temporary Disability Insurance and workers’ compensation coverage.
Set up Prepaid Health Care
After four consecutive weeks of employmentOffer a qualifying health plan to employees working 20+ hours a week, paying at least half the premium.
File the annual report
Each year in the registration quarterFile the annual business report with DCCA ($15) in the quarter tied to your registration date.
The six areas
- AccountingAccounting and state tax in HawaiiHawaii taxes corporations at 4.4%–6.4%, never adopted federal bonus depreciation, and from 2026 decouples from §174A, so research costs are amortized for Hawaii even when expensed federally.Corporate income tax4.4%–6.4%
- ReceivablesReceivables and sales tax in HawaiiHawaii has no sales tax but a 4% general excise tax (4.5% with the county surcharge) on the seller’s gross income, including SaaS; remote sellers owe it at $100,000 or 200 transactions.GET rate4%
- PayablesPayables and contractors in HawaiiHawaii vendors visibly pass on GET, so it appears on invoices as part of cost; contractor misclassification costs more here because employees bring TDI and mandatory health coverage.GET on purchasesPassed on
- PayrollPayroll taxes and employer rules in HawaiiHawaii payroll carries UI at 2.40% on $64,500, Temporary Disability Insurance, mandatory Prepaid Health Care at 20+ hours a week, withholding up to 11%, and a $16.00 minimum wage.Minimum wage$16.00 an hour
- ComplianceCompliance and filings in HawaiiA Delaware corporation registers with DCCA and files a $15 annual report in its registration quarter, holds a $20 GET license, and files Form N-30 by the 20th day of the fourth month.GET license$20
- AdvisoryAdvisory: credits and decisions in HawaiiHawaii’s founder-level issues are cost, not rate: mandatory employer health coverage, a GET on gross income, and §174A decoupling that brings back R&D amortization from 2026.Individual income tax1.4%–11%
Who you register with
- Hawaii Department of Taxation (DOTAX)General excise tax license and returns, corporate income tax and withholding
- Department of Labor and Industrial Relations (DLIR)Unemployment insurance, TDI, prepaid health care, workers’ comp and wage rules
- DCCA Business Registration DivisionForeign registration and annual business reports
- Department of Business, Economic Development and Tourism (DBEDT)Certification for the tax credit for research activities
Common questions
Can we expense R&D in Hawaii like we do federally?
Not from 2026. HB 2329 moved Hawaii’s conformity date to December 31, 2025 for tax years beginning after that date, but made the new §174A inoperative: domestic research costs follow §174 as it read on December 31, 2024, so they are capitalized and amortized over five years for Hawaii even when expensed federally.
Do we charge sales tax to Hawaii customers?
Not exactly — Hawaii has no sales tax. It has the general excise tax, which is the seller’s tax on its gross income from business in Hawaii, including SaaS and other services. Sellers may visibly pass it on to customers, and most do, but they owe it whether or not they collect it.
Why do Hawaii vendor invoices include GET?
Often. Hawaii vendors may visibly pass on the GET they owe on their own gross income, so invoices from Hawaii vendors frequently carry a GET line — at up to 4.712% where the 4.5% rate applies, to cover the tax on the tax. It is part of the cost of the purchase, not a credit the company recovers.
What is TDI and who pays for it?
Temporary Disability Insurance is employer-provided coverage for off-the-job disability. The employer may withhold up to half its cost from the employee, but no more than 0.5% of weekly wages — $7.50 a week maximum in 2026 — and pays the rest.
What registrations does a Delaware corporation need in Hawaii?
Register with DCCA’s Business Registration Division as a foreign corporation, then get a Hawaii Tax ID and GET license from DOTAX (a one-time $20 fee) on Form BB-1 or online. Payroll needs DLIR registration for unemployment insurance plus TDI, Prepaid Health Care and workers’ compensation coverage.
What is the biggest Hawaii-specific cost of hiring?
The Prepaid Health Care Act. Hawaii is the only state that requires employers to provide health insurance: employees working 20 or more hours a week who earn at least 86.67 times the minimum wage a month must be covered after four consecutive weeks, with the employer paying at least half the premium.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- Hawaii DOTAX — 2025 Instructions for Form N-30
- Hawaii DOTAX — 2025 Instructions for Form N-11 (individual rate schedules)
- Hawaii Legislature — HB 2329 CD1 (2026), IRC conformity
- PwC — US state income tax digest, May 2026 (Hawaii HB 2329)
- Hawaii DOTAX — General excise tax
- Hawaii DOTAX — County surcharge on general excise and use tax
- Hawaii DOTAX — Tax Information Release 2019-03 (economic nexus and marketplace facilitators)
- Hawaii DOTAX — Tax Facts 37-1, General Excise Tax
- Hawaii DOTAX — Employer withholding
- Hawaii DLIR — Unemployment insurance contribution rates and taxable wage base
- Hawaii DLIR Disability Compensation Division — 2026 maximum weekly wage base
- Hawaii DLIR — Highlights of the Hawaii Prepaid Health Care Law (rev. 2026.06)
- Office of the Governor — Hawaiʻi’s minimum wage increases to $16.00 on January 1
- DCCA Business Registration Division — Fees
- DCCA — Hawaii annual business reports are due by quarter
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.