Hawaii Resale Certificate Guide 2026: How to Get Yours

Hawaii does not have a traditional sales tax. Instead, the state imposes a General Excise Tax (GET) on virtually all business transactions. The state GET rate is 4%, with counties authorized to add a surcharge of up to 0.5%, bringing the combined rate to 4.5% in most areas. The critical difference between GET and a sales tax is that GET is levied on the seller, not the buyer. Every business activity in Hawaii is potentially subject to GET, making it one of the broadest consumption taxes in the nation. If you buy goods for resale in Hawaii, you need Form G-17, the Resale Certificate for the General Excise Tax. This guide covers the full process for 2026.

Hawaii General Excise Tax Basics

Understanding GET vs. Sales Tax

This distinction is fundamental. In a traditional sales tax state, the tax is imposed on the buyer and collected by the seller on behalf of the state. In Hawaii, the General Excise Tax is imposed on the seller's gross income from business activities. The seller owes GET on the total receipts from a sale.

In practice, most Hawaii businesses pass the GET cost along to customers by adding a visible surcharge to invoices. However, they are not legally required to do so. When sellers do pass the tax through, they typically charge 4.712% (rather than 4%) to account for the fact that the passed-through tax itself is considered gross income and is also subject to GET. This "tax on tax" effect is unique to Hawaii.

State Rate

The Hawaii GET rate is 4% for retail transactions. Wholesale transactions (sales to licensed dealers for resale) are taxed at a reduced rate of 0.5%. Counties may impose a surcharge of up to 0.5%, which most have adopted. The common combined rates are:

• Honolulu County (Oahu): 4.5%
• Hawaii County (Big Island): 4.5%
• Maui County: 4.5%
• Kauai County: 4.5%

You can verify the rate for any location using our sales tax lookup tool.

Use Tax

Hawaii imposes a use tax on goods imported into the state for use. The use tax rate is 4% (plus any applicable county surcharge). Items imported for resale are exempt from use tax with a valid resale certificate.

What Is Taxable in Hawaii?

Hawaii's GET is one of the broadest consumption taxes in the United States. Nearly all business activities are taxable:

• All tangible personal property sales are taxable
• Nearly all services are taxable (far broader than most states)
• Groceries are taxable (no food exemption)
• Prescription drugs are taxable (one of the only states)
• Clothing is taxable
• Rent is taxable
• Professional services, construction, and healthcare services are taxable
• Digital products and SaaS are taxable
• Insurance commissions are taxable at a lower rate of 0.15%

The breadth of GET means that businesses in Hawaii face tax obligations that would not exist in most mainland states.

What Form Do You Need?

Hawaii uses Form G-17, the Resale Certificate for the General Excise Tax. This form is issued by the Hawaii Department of Taxation.

About Form G-17

Form G-17 allows a licensed dealer to certify that goods purchased from another dealer are for resale. When a valid G-17 is provided, the seller reports the transaction at the reduced wholesale rate of 0.5% instead of the standard 4% retail rate.

This is different from most mainland states where a resale certificate completely eliminates the tax. In Hawaii, the wholesale rate of 0.5% still applies. The seller still owes GET, just at a much lower rate.

Key fields on Form G-17 include:

• Purchaser's name, address, and phone number
• Hawaii GET license number
• General description of products purchased for resale
• Statement that the goods will be resold
• Purchaser's signature and date

Where to Get the Form

Form G-17 is available as a free PDF from the Hawaii Department of Taxation website at tax.hawaii.gov. You can also contact the department to request a copy by mail.

Who Needs a Hawaii Resale Certificate?

Any business purchasing tangible personal property for resale in Hawaii needs Form G-17. This includes:

Retailers buying inventory for sale in brick-and-mortar stores, online platforms, or at markets and events. Hawaii's tourism economy supports a large retail sector.

Wholesalers and distributors purchasing goods from importers, manufacturers, or other wholesalers for redistribution. Given Hawaii's island geography, many goods are imported from the mainland or overseas.

Online sellers with a Hawaii GET license who purchase inventory for resale through Amazon, eBay, Etsy, Shopify, or other platforms.

Restaurants and food businesses purchasing food ingredients for preparation and sale as meals. Since Hawaii taxes groceries, the GET on food purchases is a significant cost that the resale certificate helps reduce.

Tour operators and gift shops purchasing merchandise for resale to tourists.

Who Does NOT Qualify

• Consumers buying for personal use
• Businesses purchasing supplies, tools, or equipment for internal operations
• Contractors buying materials consumed in the performance of a contract (though construction has its own GET rules)

How to Apply for a Hawaii Resale Certificate

Step 1: Register for a Hawaii GET License

You need a Hawaii General Excise Tax license before you can issue a valid Form G-17. Registration is handled through the Hawaii Department of Taxation.

What you need to register:

• Federal EIN or SSN
• Business legal name and trade names
• Business address (physical and mailing)
• Type of business entity
• Description of business activities
• Expected start date
• Estimated monthly gross income
• Names of owners, partners, or officers

Registration fee: Hawaii charges a one-time $20 registration fee for a GET license. This is one of the few states that charges for sales tax registration.

Apply online through Hawaii Tax Online at tax.hawaii.gov.

Processing time: Online applications are typically processed within 5 to 10 business days.

Step 2: Complete Form G-17

Download the form and fill in your business details. Include your Hawaii GET license number and describe the products you will purchase for resale.

Step 3: Provide the Certificate to Your Suppliers

Give the completed Form G-17 to each vendor you buy from for resale. The vendor reports those transactions at the 0.5% wholesale rate instead of the 4% retail rate.

Want help with the process? We handle everything from registration to certificate completion.

Get Your Resale Certificate -->

Multi-State Considerations

Hawaii's geographic isolation and unique tax system create specific multi-state considerations.

Not an SST or MTC Member

Hawaii is not a member of the Streamlined Sales Tax (SST) agreement or the Multistate Tax Commission (MTC). The state's GET system is fundamentally different from the sales tax framework used by most mainland states. Neither the SST certificate nor the MTC certificate is valid in Hawaii. You must use Form G-17.

Economic Nexus

Hawaii's economic nexus threshold is $100,000 in sales or 200 transactions with Hawaii customers in the current or prior calendar year. Mainland businesses exceeding either threshold must register for a GET license and report GET on their Hawaii sales.

Marketplace Facilitator Rules

Hawaii requires marketplace facilitators to collect and remit GET on behalf of third-party sellers. If you sell through Amazon, eBay, or similar platforms, the marketplace handles GET collection on those transactions.

Importing Goods

Because Hawaii is an island state, nearly all inventory arrives via shipping. Goods imported into Hawaii for resale are exempt from the state's use tax when the purchaser has a valid GET license and the goods are genuinely for resale. Goods imported for personal or business use (not resale) are subject to the 4% use tax plus any county surcharge.

Mainland Vendors

When purchasing from mainland vendors, Hawaii businesses should provide those vendors with documentation of the resale exemption. Some mainland vendors may not be familiar with Hawaii's GET system and may require explanation. Having a completed Form G-17 and your GET license number ready can smooth the process.

For more on multi-state compliance, see our multi-state resale certificate guide.

Common Mistakes with Hawaii Resale Certificates

Mistake 1: Expecting Full Tax Exemption

Unlike mainland sales tax states where a resale certificate eliminates the tax entirely, Hawaii's GET still applies at the 0.5% wholesale rate on resale transactions. The certificate does not make the purchase tax-free. It reduces the seller's rate from 4% to 0.5%.

Mistake 2: Not Understanding the Tax-on-Tax Effect

When Hawaii businesses pass GET through to customers, the passed-through amount is itself considered gross income and is subject to GET. This is why businesses charge 4.712% instead of 4% (and 4.1667% on the neighbor islands, depending on the surcharge). Failing to account for this pyramiding effect can cause underreporting.

Mistake 3: Using Mainland Exemption Certificates

The SST certificate, MTC certificate, and exemption certificates from other states are not valid in Hawaii. Only Form G-17 is accepted for the resale exemption. Using the wrong form leaves the seller liable for GET at the full retail rate.

Mistake 4: Not Filing GET Returns for All Income

GET applies to virtually all business income in Hawaii, not just sales of goods. Service income, rental income, commission income, and other revenue sources are all subject to GET. Many businesses from the mainland are surprised by the breadth of GET obligations. File for all income, not just retail sales.

Hawaii-Specific Rules You Should Know

The 0.5% Wholesale Rate

When a buyer provides a valid Form G-17, the seller reports the transaction at the 0.5% wholesale rate instead of the 4% retail rate. This is a significant reduction. For a $100,000 inventory purchase, the difference is $3,500 ($4,000 at 4% vs. $500 at 0.5%).

The wholesale rate is one of the key incentives for getting and using Form G-17 properly.

GET Applies to Nearly Everything

Hawaii's GET is one of the most comprehensive consumption taxes in the country. Unlike most states where only tangible goods and select services are taxed, Hawaii taxes nearly all economic activity. This includes:

• Professional services (legal, accounting, consulting)
• Healthcare services
• Rental income (commercial and residential)
• Construction and contracting
• Insurance commissions (at 0.15%)
• Interest income (for financial institutions)

Tax Pyramiding

Because GET is imposed at every level of a transaction chain, tax pyramiding occurs. A manufacturer pays GET on their gross receipts. The wholesaler pays GET on their gross receipts (which include the manufacturer's GET passed through). The retailer pays GET on their gross receipts (which include prior layers of GET). Each layer of tax becomes part of the base for the next layer.

The 0.5% wholesale rate mitigates pyramiding somewhat, but it does not eliminate it. This is a structural feature of GET that critics frequently highlight.

County Surcharges

All four Hawaii counties currently impose a county surcharge on top of the state GET rate. The surcharge is typically 0.5%, bringing the combined rate to 4.5% for retail transactions. County surcharges fund county-level priorities such as rail transit (Honolulu) and general operations.

No Grocery or Medicine Exemption

Hawaii taxes groceries and prescription drugs at the full GET rate. This is unusual. Most mainland states exempt one or both. If you sell food or pharmaceuticals in Hawaii, there is no exemption at the retail level. However, purchasing these goods for resale qualifies for the 0.5% wholesale rate with a valid G-17.

Annual Filing and Payment

Hawaii GET returns are generally filed monthly, quarterly, or semi-annually depending on the amount of tax liability. An annual reconciliation return (Form G-49) is due 20 days after the close of the tax year. All businesses with a GET license must file even if they had no taxable activity during a period.

How Much Can You Save?

With Form G-17, the seller's GET rate drops from 4% to 0.5%. Your savings represent the difference.

Note: Savings are based on the state rate. County surcharge savings are additional.

Use our savings calculator to calculate your exact savings.

Hawaii Resale Certificate FAQs

Q: Does the Hawaii resale certificate expire? A: Form G-17 does not carry an expiration date. It is valid as long as the buyer's GET license is active. Vendors may request updated certificates periodically.

Q: Does Hawaii completely exempt resale purchases from tax? A: No. Unlike most mainland states, Hawaii's GET still applies at the reduced wholesale rate of 0.5% on resale transactions. The G-17 reduces the rate but does not eliminate the tax.

Q: Is there a fee for a Hawaii GET license? A: Yes. Hawaii charges a one-time $20 registration fee for a GET license.

Q: Can I use an SST or MTC certificate in Hawaii? A: No. Hawaii does not accept the SST certificate, MTC certificate, or exemption certificates from other states. Only Form G-17 is valid for the GET resale exemption.

Q: Why do Hawaii businesses charge more than 4% when passing through GET? A: Because the GET passed through to customers is itself considered gross income subject to GET. To fully recover the tax cost, businesses charge approximately 4.712% (at the 4.5% combined rate with county surcharge, the pass-through rate is even higher). This "tax on tax" effect is a structural feature of GET.

Get Started with Your Hawaii Resale Certificate

Hawaii's GET system is unlike any other state. Understanding the wholesale rate, tax pyramiding, and the broad tax base is essential for compliance. Get your GET license, complete your Form G-17, and start reducing your tax costs on every inventory purchase.

• Expert GET license registration guidance
• Help completing Form G-17
• Ongoing compliance support for GET reporting

Get Your Resale Certificate -->

For more details on Hawaii's requirements, visit our Hawaii state page.

Hawaii's GET is broad, but the savings from using Form G-17 are real. Reducing your supplier's rate from 4% to 0.5% on every inventory purchase translates to significant cost savings over time. Register, provide certificates to your vendors, and file your returns consistently.

Related Articles

• What Is a Resale Certificate? - New to resale certificates? Start with the fundamentals.
• Understanding Sales Tax Nexus - Learn when mainland businesses must register for Hawaii GET.
• Resale Certificate Mistakes That Trigger Audits - Hawaii's unique system makes proper documentation critical.