Select your state

Taxes

use tax

Use tax is a tax imposed by state taxing authorities on the purchase of goods outside the taxpayer’s state of residence when sales tax is not collected on the transaction. Use taxes are generally designed to discourage the purchase of goods that are not subject to sales tax.

In Hawaii, the use tax is applied to purchases made from out-of-state sellers where no sales tax has been paid. Hawaii does not have a traditional sales tax system but instead imposes a General Excise Tax (GET) on businesses for the privilege of doing business in the state. The use tax complements the GET by taxing goods and services purchased out of state and then brought into Hawaii for use, ensuring that these transactions do not have an unfair advantage over those subject to the GET. The use tax rate in Hawaii is generally the same as the GET rate, which is currently 4% for most transactions, with a 0.5% surcharge in Oahu. Individuals and businesses are responsible for reporting and paying use tax on out-of-state purchases that have not been taxed, typically through their annual tax returns or periodic filings.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Taxes

use tax

Individual & Family Legal Plan

Articles

Hawaii State Code

Articles

Taxes

use tax

Hawaii State Code