We are a mainland company with Hawaii customers. Do we owe GET?

If your mainland company has customers in Hawaii and your sales to the state exceed certain thresholds, you likely have a General Excise Tax obligation even without a physical presence in the islands.

Hawaii’s GET is levied on gross business income, not just retail sales. Unlike sales tax in most states, it applies to services and wholesale transactions as well as consumer goods. When you sell to Hawaii customers, the state considers that taxable activity if you meet the nexus requirements.

Economic nexus in Hawaii is triggered when a business exceeds roughly $100,000 in gross receipts from Hawaii sources or conducts more than 200 separate transactions with Hawaii customers in a calendar year. These thresholds should be verified with current state guidance since they can change, but they represent the baseline that creates filing obligations for most remote sellers.

Physical presence still matters too. If you have employees, contractors, inventory, or equipment in Hawaii, you have nexus regardless of your sales volume.

Many mainland businesses discover their Hawaii GET obligations later than they should. The tax doesn’t get collected automatically like marketplace facilitator rules in other states, and not every business recognizes when their Hawaii activity crosses the threshold. By the time the exposure is identified, back filing and penalties become part of the conversation. This is an area where financial advisory with Hawaii expertise makes a real difference.

For companies shipping physical goods to Hawaii, use tax is an additional layer. Hawaii imposes this on tangible property brought into the state for consumption or use. The details depend on the nature of the transaction and who bears responsibility for the tax.

Kai Crest serves clients across Hawaii and the West Coast who have Hawaii customers or operations. Our Hawaii GET Compliance service handles registration guidance, classification of income at the correct rates, and timely filing on your behalf. The company is based in Kihei and brings local knowledge that mainland bookkeepers typically lack.

If you are unsure whether your business has Hawaii GET exposure, we can review your situation and provide clarity. Schedule a consultation to discuss your Hawaii activity and determine what compliance looks like for your business.