Key figures
Hawaii payables
2026, with sources
GET shows up on invoices
Hawaii has no sales tax; its general excise tax is levied on the seller’s gross income. Sellers aren’t required to collect it, but most visibly pass it on, so invoices from Hawaii vendors carry a GET line — up to 4.712% at the 4.5% combined rate, because the pass-on amount is itself taxable income to the vendor.
For accounts payable, the GET charged by a vendor is part of the cost of what was bought. There is no input credit, so it can’t be recovered against the company’s own GET.
Contractors
A contractor working in Hawaii is in business there and owes GET on what it is paid. Whether the worker is a contractor at all matters more in Hawaii than elsewhere: an employee brings TDI and Prepaid Health Care obligations as well as unemployment insurance and workers’ comp, so misclassification carries a larger bill.
Example: a startup pays a Maui designer $5,000 a month; the designer’s invoices include GET at the visible pass-on rate. If DLIR later treats the designer as an employee working 20+ hours a week, the company owes health coverage under Prepaid Health Care in addition to payroll taxes.
The federal baseline
This page covers what Hawaii adds. The federal rules underneath it apply here too.
Common questions
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 about Hawaii contractors?
If they perform services in Hawaii they generally owe GET on their own gross income, and need their own GET license. Classification as employee or contractor is still a DLIR question for unemployment insurance, TDI, Prepaid Health Care and workers’ compensation.
More of the Hawaii guide
- AccountingAccounting and state tax in HawaiiCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in HawaiiSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayrollPayroll taxes and employer rules in HawaiiWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in HawaiiRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in HawaiiCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
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.