GET for Side Gigs: Hawaii General Excise Tax Guide

But here’s something that catches a lot of people off guard: Hawaii’s General Excise Tax. If you’ve lived anywhere else in the U.S., you might be thinking, “Yeah, yeah, sales tax, I get it.” Except Hawaii’s GET isn’t quite like sales tax anywhere else, and not understanding it can lead to some unwelcome surprises come tax time.

Let me break down what you actually need to know about GET if you’re earning money on the side in Hawaii.

What Exactly is GET Anyway?

The General Excise Tax is Hawaii’s version of a sales tax, except it’s not really a sales tax at all. Sales tax in most states is paid by the customer on retail purchases. Hawaii’s GET is a tax on your business activity—basically, a tax on the privilege of doing business in the state.

Here’s the key difference: while you can pass the cost along to your customers (and most businesses do), you’re technically the one responsible for paying it, not them. The state doesn’t care if you collect it from customers or eat the cost yourself—you owe it either way.

The standard GET rate is 4%, which sounds reasonable until you realize it applies to almost everything. Selling products? 4% GET. Providing services? 4% GET. Earning rental income from that spare bedroom you’re Airbnb-ing? Yep, 4% GET. Hawaii taxes pretty much all business activity, which is part of why the state can function without a traditional sales tax.

The County Surcharge Nobody Tells You About

Just when you thought 4% was straightforward, there’s an additional county surcharge in certain areas. If you’re doing business on Oahu, you’ll pay an extra 0.5% surcharge, bringing your total to 4.5%. This surcharge helps fund the rail project, which is either exciting news or a sore subject depending on who you ask and how your commute is going.

The other islands don’t currently have this surcharge, so if you’re operating a side gig on Maui, Big Island, or Kauai, you’re looking at the straight 4% rate. But if you’re on Oahu—which is where most of Hawaii’s population and business activity happens—factor in that extra half percent.

Do You Actually Need to Register?

Here’s where people get confused. The short answer is: if you’re doing any business activity in Hawaii and your gross income is going to exceed $4,000 per year (or roughly $333 per month), you need to register for a GET license.

Notice I said “gross income,” not profit. If you sell $5,000 worth of products but your expenses were $4,500, you still need to register because your gross was over the threshold. Hawaii doesn’t care about your costs when determining if you need a license—they care about your total business receipts.

Getting your GET license is actually pretty straightforward. You register online through Hawaii Business Express, and there’s a one-time $20 registration fee. You’ll get a GET license number that you’ll use when filing your returns.

Some people think they can fly under the radar with small side gigs, and honestly, plenty do for a while. But here’s the thing: if you’re getting paid through platforms like Venmo, PayPal, Etsy, or any other service that reports to the IRS, the state can see that income. And if you’re not filing GET returns, that’s a problem waiting to happen.

Filing and Paying: What You Need to Know

Once you’re registered, you’ll need to file GET returns. How often you file depends on how much you’re making:

If your annual GET tax liability is less than $4,000, you can file annually. For most side gigs, this is the category you’ll fall into, which is great because it means dealing with this once a year instead of every month.

If you’re making more—congrats on the successful side hustle, by the way—you might need to file quarterly or even monthly. The state will let you know which schedule applies to you when you register.

Filing is done online through the Hawaii Tax Online system. You’ll report your gross income, calculate the GET owed (4% or 4.5% depending on your location and activity), and pay electronically. The due dates are generally the 20th of the month following the filing period, so your annual return would be due January 20th for the previous year’s activity.

Here’s a pro tip that can save you some stress: set aside that 4-5% from every payment you receive. Open a separate savings account if you need to, but don’t treat that money like it’s yours to spend. When filing time comes around, you’ll have the cash ready instead of scrambling to find several hundred (or thousand) dollars you’ve already spent.

The Stuff That Trips People Up

One thing that catches people off guard is that GET applies to services you might not think of as “business.” That graphic design work you did for a friend? Technically taxable. The lawn mowing you do for neighbors? Yep. The baked goods you sell at the weekend farmers market? Absolutely.

Another gotcha: if you’re a contractor or freelancer and your clients are Hawaii businesses, they might be withholding GET from your payments. This is legal and common, but it means you need to account for it when you file so you’re not double-paying. Keep track of any GET your clients withhold—you’ll need that information come filing time.

Also, different types of business activities can have different GET rates. While most things are 4%, some activities like wholesaling, manufacturing, and producing have different rates. If you’re just doing straightforward freelance work or selling products directly to consumers, you’re almost certainly in the standard 4% category, but it’s worth confirming if your situation is more complex.

Staying Out of Trouble

The state of Hawaii takes GET seriously, and penalties for not filing or underpaying can add up quickly. We’re talking penalties, interest, and potential audits—none of which are fun when you’re trying to run a side business.

My advice? Just stay compliant from the start. Register when you hit that $4,000 threshold (or before, if you’re planning to exceed it). File on time even if you don’t owe much. Keep decent records of your income and expenses. It doesn’t have to be complicated—a simple spreadsheet tracking payments received and GET collected is often enough for a small side gig.

If your side hustle starts growing into something more substantial, consider talking to a local accountant who knows Hawaii tax law. They can help you navigate the nuances and make sure you’re not missing deductions or overpaying.

The Bottom Line

Hawaii’s General Excise Tax isn’t as scary as it sounds once you understand the basics. Yes, it’s one more thing to deal with when you’re trying to earn extra income. Yes, it’s annoying to give up 4-5% of what you make. But it’s also just part of doing business in Hawaii, and staying on top of it from the beginning is way less stressful than trying to fix problems later.

Think of it this way: if your side gig is successful enough that you’re paying meaningful GET, that means you’re actually making money in Hawaii, which is an accomplishment in itself. The tax is just the price of admission for participating in the local economy.

The good news is that once you’ve got the system down—register, set aside the money, file on time—it becomes just another routine part of running your side business. And that extra income? It opens up possibilities, whether that’s building up savings, paying down debt, or just having a little more breathing room in your budget. Understanding GET is part of making sure your side hustle actually works for you financially, not just on paper.

Now get out there and make that money. Just remember to set aside 4.5% of it first.

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