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Dec 18, 2024
How do you accurately calculate total General Excise Tax for different transaction types in Hawaii?
To calculate Hawaii’s General Excise Tax (GET):
Determine Taxable Sale: Most tangible goods and certain services are taxable.
Apply State GET Rate: Start with the base 4%.
Add County Surcharge: For example, Oahu's 0.75% brings the total GET to 4.75%.
Calculate Tax: Multiply the sale price by the total GET rate.
Example: A $100 sale in Oahu = $4.75 GET (100 x 4.75%).
Consider Exemptions: Exclude tax-exempt items.
E-commerce: Apply the origin-based GET rate regardless of the buyer’s location.
SaaS and Digital Goods: Taxable under GET; apply appropriate rates.
Accurate classification and application of rates ensure compliance with Hawaii’s GET regulations.
