Make Notes On Legal Hawaii Accounting Forms For Free

The GET is a privilege tax imposed on business activity in the State of Hawaii. The tax is imposed on the gross income received by the person en- gaging in the business activity. The GET applies to nearly every form of business activity.

A franchise tax is a state tax imposed on businesses or for-profit corporations doing business in the state. Because the primary purpose of a franchise tax is to raise revenue for the state, a franchise tax is distinct from federal taxes, such as income or excise tax.

A tax is imposed by chapter 241, Hawaii Revised Statutes (HRS), on certain types of income of banks and other financial institutions. The tax is commonly referred to as the franchise tax and is in lieu of the income tax and general excise tax.

Hawaii also has a 4.40 to 6.40 percent corporate income tax rate. Hawaii has a 4.00 percent state sales tax rate, a 0.50 percent max local sales tax rate, and an average combined state and local sales tax rate of 4.44 percent. Hawaii's tax system ranks 43rd overall on our 2023 State Business Tax Climate Index.

Forms G-45, G-49, and GEW-TA-RV-6 can be filed and payments made electronically through the State's Internet portal. For more information, go to tax.hawaii.gov/eservices/. NOTE: The Department requires taxpayers whose general excise tax liability exceeds $4,000 for the taxable year, to file returns electronically.

A periodic general excise/use tax return (Form G-45), including an amended return, can be filed and payment made electronically through the State's Internet portal. For more information, go to tax.hawaii.gov/eservices/.