- Hawaii has a “general excise tax” (GET) instead of a traditional sales tax, which is charged to businesses but usually passed on to consumers.
- GET applies to the total gross proceeds of a sale, including shipping and delivery charges, for sales within Hawaii.
- Hawaii is the only state that always taxes shipping charges, regardless of whether they are listed separately or included in the item price.
- Businesses should charge customers GET on shipping to avoid paying it out of pocket.
- TaxJar collects sales tax on shipping charges for taxable packages in Hawaii but not for non-taxable items.
Source: taxjar.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "United States"
- Understanding Utility Sales Tax Exemptions: Are Your Business Utilities Tax-Exempt?
- Is Shipping Subject to Sales Tax in Washington State?
- Are Shipping Charges Subject to Sales Tax in South Carolina?
- Are Shipping Charges Subject to Sales Tax in Missouri?
- Is Shipping Taxable in Maine? Rules for Sales Tax on Shipping and Handling
