Hawaii sales tax debt: what the Department of Taxation can do and your options
Last updated · Reviewed for accuracy against IRS.gov guidance
Hawaii has no sales tax. It has a general excise tax (GET) on the gross income of businesses — 4% for most retail and service activity, plus a county surcharge — administered by the Hawaii Department of Taxation. Because GET is the business's own tax and covers most services, service businesses often owe it without realizing.
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Who collects Hawaii sales tax
The Hawaii Department of Taxation administers the general excise tax (GET). The rate for most retail and service income is 4%, with a 0.5% rate for wholesaling and certain other activities. All four counties add a county surcharge (0.5% in each county as of recent years), which the Department collects with GET.
GET is on the business, and covers services
Unlike a sales tax, GET is imposed on the business's gross income, not the customer. Businesses may visibly pass it on, but the liability is yours either way. It applies to almost all business activity, including professional and personal services that many states don't tax — so consultants, contractors and salons are common GET debtors.
Personal liability
Many states let the revenue agency assess owners and officers personally for sales tax a business collected but didn't remit. We haven't confirmed Hawaii's specific rule on an official the Department of Taxation page, so we won't describe it here. If you were an owner, officer or bookkeeper with authority to pay bills, ask the Department of Taxation directly whether a responsible-person assessment applies — and read the federal Trust Fund Recovery Penalty guide if payroll taxes are also behind.
Disputes and next steps
Every the Department of Taxation assessment notice states how and by when to dispute it. We haven't summarized Hawaii's appeal stages here because we couldn't confirm them on an official page — use the deadline printed on your notice, which is usually short.
Before calling, file any missing returns, keep the current period paid, and run the free business tax relief assessment to see which routes may be worth raising.
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Start the calculatorFrequently asked questions
Is Hawaii GET a sales tax?
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No. It's a tax on the business's gross income. Businesses may pass it on, but the business owes it regardless.
What is the Hawaii GET rate?
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4% for most retail and service income, 0.5% for wholesaling and certain activities, plus a county surcharge collected with GET.
Do service businesses owe Hawaii GET?
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Generally yes. GET applies to most business activity, including services.
Does closing the business end Hawaii sales tax debt?
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No. Closing stops new liability, but assessed tax, penalties and interest remain, and states often pursue the people responsible for collected-but-unremitted tax.
Where do I start if I'm behind on Hawaii sales tax?
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File every missing return so the Department of Taxation can replace any estimated bill with real figures, pay the current period, then contact the Department of Taxation about the older balance.
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Sources
IRS figures on this page (rates, fees, thresholds) verified as of 2026-11-04. See our editorial policy.
TaxSettlementCalculator.com is not a tax firm, law firm, CPA, or government agency and is not affiliated with the IRS or any state tax agency. Estimates are for educational purposes only and are not tax, legal, or financial advice. Results vary based on individual circumstances, and no outcome is guaranteed. We connect users with independent tax relief professionals.