Hawaii has a sales tax, but it works differently than most states
Hawaii charges a General Excise Tax (GET) instead of a traditional sales tax. The rate is 4.712% statewide, though some counties add a local surcharge that brings the total to 4.712% or higher. Unlike mainland sales taxes that explore at the register, Hawaii's GET is technically a business tax — but it gets passed to you as the buyer in almost every transaction.
The key difference: Hawaii taxes services as well as goods. A haircut, a restaurant meal, a hotel stay, and a car repair all get the GET applied. On the mainland, most services escape sales tax entirely. This means your total tax burden on everyday purchases is often higher in Hawaii than it appears at first glance.
Key Takeaways
- Hawaii's General Excise Tax is 4.712% statewide, with some counties charging up to 4.5% additional local tax for a combined rate as high as 4.712%.
- The GET applies to both goods and services, including groceries, restaurant meals, hotel stays, and professional services — categories that often escape sales tax on the mainland.
- Certain items are exempt from the GET, including most prescription medications, medical devices, and some agricultural products.
- The GET is a business tax that sellers are required to remit to the state, but the cost is passed to consumers at the point of sale.
How the General Excise Tax rate breaks down by county
The statewide GET of 4.712% applies everywhere in Hawaii. However, four counties — Hawaii County, Honolulu County, Kalawao County, and Maui County — add their own local surcharge on top of that. Honolulu County, which includes Oahu, adds 0.5%, bringing the total to 4.712%. Hawaii County (the Big Island) adds 0.5% as well. Maui County adds 0.5%. Kalawao County, the smallest, also adds 0.5%.
This means your actual tax rate depends on where you make the purchase. If you buy something in Honolulu, you pay 4.712%. If you buy the same item in a rural area of Hawaii County, you still pay 4.712%. The variation is small but real — and it matters most on large purchases like vehicles or real estate transactions, where the GET can add hundreds of dollars to the final cost.
What items are exempt from the GET
Prescription medications are exempt from Hawaii's GET. Over-the-counter medications and vitamins are not exempt and will be taxed. Medical devices prescribed by a doctor — such as wheelchairs, hearing aids, and diabetic testing supplies — are also exempt, but only if they are prescribed.
Most groceries intended for home consumption are exempt, including fresh produce, meat, dairy, and bread. However, prepared foods, restaurant meals, and items sold hot or ready-to-eat are taxed. Seeds and plants used for food production are exempt. Agricultural products sold by farmers are generally exempt when sold directly to consumers or wholesalers, but this exemption has specific conditions tied to the type of sale.
Certain business-to-business transactions are also exempt or taxed at a lower rate, but as a consumer, you will rarely encounter these. The rule of thumb: if it is a finished good or service you are buying for personal use, the GET applies unless it falls into one of the specific exempt categories.
Why Hawaii taxes services when most states don't
Hawaii's GET was designed in 1935 as a broad-based tax that would capture revenue from the state's growing service economy — tourism, hospitality, and professional services. Rather than create a long list of exemptions, the state made the GET explore to nearly everything, then carved out only the essentials like medicine and basic food.
This approach generates more revenue per transaction than a traditional sales tax, which is why Hawaii's rate looks low at 4.712% but often feels higher when you check your receipt. A $50 haircut, a $100 hotel night, and a $30 restaurant meal all get taxed. On the mainland, the haircut and meal might escape sales tax entirely, and the hotel tax would be separate and often higher.
How the GET affects common purchases
At a grocery store, your fresh vegetables and meat are not taxed, but prepared deli items, hot foods, and anything sold from the hot case will be. A bottle of soda is taxed. A loaf of bread is not. This distinction can be confusing at checkout, and cashiers sometimes make mistakes — if you believe you were charged incorrectly, ask to see the receipt and compare it to the store's tax policy.
At a restaurant, the entire bill — food and drink — is subject to the GET. At a hotel, the room rate itself is taxed, and any services you purchase (spa, room service, activities) are taxed separately. When you rent a car, the rental agreement is taxed. When you buy a used car from a dealer, the sale price is taxed. When you hire a plumber or electrician, their labor and materials are both taxed.
For tourists, this adds up quickly. A week in Hawaii with meals out, hotel stays, and activities can easily include $300 to $500 in GET charges that would not appear on a mainland trip at the same price point.
What happens if you buy something online or out of state
If you order something online from a mainland retailer and have it shipped to Hawaii, you generally do not pay Hawaii's GET at checkout — but you may owe it anyway. Hawaii requires residents to pay a "use tax" on items purchased outside the state and brought in for use. The use tax rate matches the GET rate for the county where you live.
In practice, most people do not pay use tax on small online purchases, and the state does not actively pursue individual consumers for it. However, if you are buying a vehicle, real estate, or other high-value items out of state and bringing them to Hawaii, you should expect to pay the use tax when you register or record the purchase with the state.
Frequently Asked Questions
Is Hawaii's sales tax higher than the mainland?
Hawaii's 4.712% GET rate is lower than many mainland states, but it applies to services that mainland sales taxes do not cover. A haircut, meal, or hotel stay will be taxed in Hawaii but not in most mainland states. For goods alone, Hawaii is competitive. For services, it is higher overall.
Do I pay the GET on groceries?
Most groceries — fresh produce, meat, dairy, bread, and frozen foods — are exempt. Prepared foods, hot items, and anything sold ready-to-eat are taxed. Check your receipt if you are unsure; the store should show which items were taxed and which were not.
What about prescription drugs?
Prescription medications are exempt from the GET. Over-the-counter medications, vitamins, and supplements are taxed. If you have a prescription, make sure the pharmacy knows — they should not charge you the GET.
Do I have to pay the GET on a used car purchase?
Yes. When you buy a used car from a dealer in Hawaii, the sale price is subject to the GET. Private sales between individuals are not subject to the GET, but you will owe use tax when you register the vehicle with the state.
Can I avoid the GET by shopping in a different county?
The difference between counties is small — all are between 4.712% and 4.712%. Shopping in a different county will not meaningfully reduce your tax burden. The GET applies based on where you make the purchase, not where you live.