Hawaii | 4.00% |
Hawaii County | 0.50% |
City + District Rate | 0.00% |
Combined Sales Tax Rate | 4.50% |
Businesses are required to collect sales tax if they have a sales tax nexus in Hawaii, whether at a physical location or online.
Physical Nexus: This occurs when a business has a tangible presence in the state. Examples include having a store, warehouse, office, or employees in Hawaii. If your business operates any of these within the state, you have a physical nexus and must collect from customers in Hawaii. Economic Nexus: This is based on the volume of sales or number of transactions a business conducts in the state. For instance, if your business exceeds a certain threshold of sales or transactions in Hawaii which is often defined as a specific dollar amount or number of transactions, you establish economic nexus. This means even if you don’t have a physical presence in the state, you are still required to collect from customers in Hawaii.