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openaccountants/skills/hawaii-sales-tax.md
hawaii-sales-tax.md68 lines2.9 KB
v20State
1---
2name: hawaii-sales-tax
3description: Use this skill whenever asked about Hawaii General Excise Tax (GET). Trigger on phrases like "Hawaii GET", "General Excise Tax", "HI sales tax", "HRS §237". Hawaii has a GET on the SELLER, not a traditional sales tax. ALWAYS load us-sales-tax first.
4version: 2.0
5---
6 
7# Hawaii General Excise Tax (GET) Skill v2.0
8 
9## Section 1 -- Quick reference
10 
11| Field | Value |
12|---|---|
13| Jurisdiction | Hawaii |
14| Tax type | General Excise Tax (GET) -- NOT a traditional sales tax; tax on SELLER's gross income |
15| Retail GET rate | 4.00% (4.50% on Oahu with county surcharge) |
16| Wholesale rate | 0.50% |
17| Services rate | 4.00% (4.50% Oahu) |
18| Insurance commissions | 0.15% |
19| Effective rate when passed to buyer | ~4.166% (to cover GET on the pass-through) |
20| Tax base | Virtually ALL business activity including services, rentals, commissions |
21| Sourcing | Destination-based |
22| Economic nexus | $100,000 in gross proceeds or gross income |
23| Tax authority | Hawaii Department of Taxation (DoTax) |
24| Portal | https://tax.hawaii.gov |
25| SST member | No |
26| Skill version | 2.0 |
27 
28**CRITICAL: GET is imposed on the SELLER, not the buyer. GET applies to virtually ALL transactions including services. GET pyramids (cascades) at every supply chain level.**
29 
30## Section 3 -- Transaction pattern library
31 
32| Pattern | Taxable? | Notes |
33|---|---|---|
34| General TPP | TAXABLE 4% (4.5% Oahu) | Retail rate |
35| Clothing | TAXABLE | No exemption |
36| Grocery food | TAXABLE | No food exemption -- GET applies to all |
37| Prepared food | TAXABLE | |
38| ALL services (including professional) | TAXABLE | Hawaii taxes virtually ALL services |
39| SaaS | TAXABLE | |
40| Digital goods | TAXABLE | |
41| Wholesale sales | TAXABLE at 0.50% | Lower wholesale rate |
42| Prescription drugs | EXEMPT | |
43| Manufacturing equipment | No specific exemption | GET applies broadly |
44| Resale | 0.50% wholesale rate | Not fully exempt; taxed at wholesale rate |
45 
46## Section 5 -- Classification rules
47 
48### GET pyramiding
49 
50GET cascades at every level. Manufacturer pays 0.5% on wholesale sales. Wholesaler pays 0.5%. Retailer pays 4%. If passed to buyer, the pass-through amount is additional gross income subject to GET again.
51 
52### Tax on virtually everything
53 
54Hawaii has one of the broadest tax bases in the US. Legal, accounting, medical, consulting -- all subject to GET at 4%.
55 
56## Section 10 -- Prohibitions
57 
58- NEVER call Hawaii's tax a "sales tax" -- it is a General Excise Tax on the seller's gross income.
59- NEVER assume food is exempt -- Hawaii taxes grocery food under GET.
60- NEVER assume services are exempt -- Hawaii taxes virtually ALL services.
61- NEVER forget the pyramiding effect -- GET cascades through the supply chain.
62- NEVER forget the Oahu county surcharge (0.50% additional).
63- NEVER compute any number.
64 
65## Disclaimer
66 
67Informational only. Review by qualified professional required before filing.
68 

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Use this skill whenever asked about Hawaii General Excise Tax (GET). Trigger on phrases like "Hawaii GET", "General Excise Tax", "HI sales tax", "HRS §237". Hawaii has a GET on the SELLER, not a traditional sales tax. ALWAYS load us-sales-tax first.

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