Sales Tax Rules
Hawaii imposes a state sales tax rate of 4%, with a maximum combined rate (state plus local) of 4.5% when local taxes are added. Economic nexus is triggered at $100,000 in sales or 200 transactions — meaning out-of-state businesses that exceed this threshold must collect and remit Hawaii sales tax. SaaS and digital software products are taxable in Hawaii. Groceries are subject to sales tax in Hawaii.
SaaS Tax Details
SaaS is taxable under the General Excise Tax (GET) as a service.
Grocery Details
Groceries are subject to GET.
What is the sales tax rate in Hawaii?
Hawaii's state sales tax rate is 4%. When local taxes are added, the maximum combined rate can reach 4.5%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in Hawaii?
Hawaii requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales or 200 transactions in a calendar year. Once nexus is established, the business must register, collect, and remit Hawaii sales tax.
Is SaaS taxable in Hawaii?
Yes. Hawaii considers SaaS (Software as a Service) taxable. Businesses selling SaaS products to Hawaii customers must collect sales tax. SaaS is taxable under the General Excise Tax (GET) as a service.
Are groceries taxed in Hawaii?
Groceries are subject to sales tax in Hawaii. Groceries are subject to GET.
Are digital goods taxable in Hawaii?
Yes. Hawaii taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to Hawaii customers should collect sales tax.
Are clothing items exempt from sales tax in Hawaii?
Clothing is subject to sales tax in Hawaii at the standard state rate.
How often do I need to file sales tax in Hawaii?
Hawaii requires sales tax filing on a Monthly, Quarterly, or Semi-Annual. Online filing is available through the official Department of Revenue portal.
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Official Source
Hawaii Department of Revenue
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.