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Avalara Help Center

Why is the tax rate in Hawaii lower than expected?


I want to collect the full 4.712 tax rate in Hawaii but Avatax only collects 4.5%. Why is that?


Avalara Avatax


Hawaii’s GET is not a sales tax, but a General Excise Tax charged on the gross sales amount of the business. State GET is 4%, Honolulu County (Oahu island) GET is 0.5%. AvaTax returns 4.5% for all customers with nexus selected for HI.

Note: Outside Honolulu the state GET rate is 4%. Within Honolulu it's 4.5%.

Businesses are allowed to collect up to 4.712% in Honolulu County and it is for you to decide if you want to do that, but we can only support one sales tax rate, the standard 4.5% in our system. You can create a custom rule to charge the additional tax rate if that is desired.

Information on these rates and how they are applied can be found at the links below:- Hawaii Sales Tax Rate. Honolulu County Surcharge.

Please see here on how to create a custom tax rule for Hawaii.