If you sell products or services to customers in Hawaii, you may have a tax obligation even if your business is located outside the state.
Hawaii does not have a traditional sales tax. Instead, it imposes a General Excise Tax (GET) on businesses. Remote sellers can establish economic nexus when they meet Hawaii’s sales or transaction threshold.
Hawaii Economic Nexus at a Glance
| Rule | Hawaii Rule |
| Tax type | General Excise Tax (GET) |
| Economic nexus threshold | $100,000 or 200 transactions |
| Measurement period | Current or previous calendar year |
| Transaction threshold | 200 transactions |
| Marketplace sales included in seller’s threshold? | Yes |
| Marketplace facilitator rules | Yes |
| Tax authority | Hawaii Department of Taxation |
What Is Economic Nexus in Hawaii?
YEconomic nexus allows Hawaii to require an out-of-state business to register and pay GET based on its economic activity in the state, even if it doesn’t have a physical presence there.
For remote sellers, Hawaii uses both a $100,000 revenue threshold and a 200-transaction threshold. This means businesses with relatively low Hawaii revenue can still establish nexus if they make a high number of individual transactions.
What Is the Economic Nexus Threshold in Hawaii?
A remote seller generally establishes economic nexus if, during the current or previous calendar year, it has:
- $100,000 or more in gross income or gross proceeds from Hawaii, or
- 200 or more separate transactions with Hawaii customers.
Meeting either threshold can create economic nexus.
For example, a business making 220 relatively small sales to Hawaii customers could establish nexus even if its total revenue is well below $100,000.
What Sales Count Toward Hawaii Economic Nexus?
Hawaii’s threshold is broader than a traditional taxable retail-sales threshold and is based on gross income or gross proceeds attributable to Hawaii.
For ecommerce businesses, this can include sales through:
- Shopify
- WooCommerce
- Your own ecommerce website
- Other direct sales channels
Businesses should therefore monitor both the value and number of their Hawaii transactions.
How Do Amazon Sales Affect Hawaii Economic Nexus?
Hawaii has marketplace facilitator rules requiring qualifying platforms such as Amazon to handle GET on sales they facilitate. If you sell through both Amazon and your own website, it’s important to distinguish between transactions handled by the marketplace and direct sales for which your business may be responsible.
Businesses should also consider their overall Hawaii activity when determining whether they have a separate GET registration obligation.
Can You Have Hawaii Nexus Below $100,000?
Firstly, Hawaii’s 200-transaction threshold can establish economic nexus even when revenue is below $100,000.
Physical presence can also create nexus independently of the economic thresholds. This can potentially include:
- An office or business location
- Employees working in Hawaii
- Inventory stored in the state
- A warehouse or fulfilment location
- Certain other business activities in Hawaii
Businesses should therefore consider both economic and physical presence.
How Does Hawaii General Excise Tax Work?
Hawaii’s GET differs from a traditional sales tax because it is imposed on the business rather than directly on the customer. The general GET rate for most retail business activities is 4%. Counties can also impose a surcharge of up to 0.5%.
Businesses may choose to visibly pass GET on to customers, but they are not required to do so. Because GET itself becomes part of the business’s gross proceeds when passed on, the maximum amount passed on can be higher than the underlying 4% or 4.5% rate. Hawaii currently publishes a maximum pass-on rate of 4.712% where the 0.5% county surcharge applies.
What Should You Do After Crossing the Hawaii Nexus Threshold?
If you reach $100,000 in qualifying Hawaii revenue or 200 transactions:
- Confirm when the threshold was reached.
- Review your direct and marketplace sales.
- Check whether you already have physical nexus.
- Register for Hawaii General Excise Tax if required.
- Configure your ecommerce platform correctly.
- Begin filing and paying GET as required.
Because GET works differently from traditional sales tax, businesses should make sure their ecommerce systems are configured specifically for Hawaii.
Hawaii Economic Nexus Examples
Shopify seller:
A remote business has $125,000 of qualifying Shopify sales into Hawaii. It meets the economic nexus threshold and should review its GET registration requirements.
High-volume seller:
A business has only $30,000 in Hawaii revenue but completes 220 separate transactions. It can establish economic nexus through the 200-transaction threshold.
Marketplace and Shopify seller:
A business sells through both Amazon and its own Shopify store. The marketplace generally handles the applicable GET on facilitated transactions, while the seller should separately determine its GET obligations for direct sales.
What If You Should Have Registered Previously?
If you established Hawaii nexus in a previous period but didn’t register, you could have outstanding GET liabilities, together with applicable penalties and interest.
Depending on your circumstances, a Voluntary Disclosure Agreement (VDA) may provide a way to resolve historical tax liabilities and potentially receive benefits such as penalty relief. It’s important to investigate your options before being contacted by the Hawaii Department of Taxation.
FAQs
What is the economic nexus threshold in Hawaii?
Hawaii’s economic nexus threshold is generally $100,000 or more in gross income or gross proceeds or 200 or more transactions during the current or previous calendar year.
Does Hawaii have a 200-transaction threshold?
Yes, Hawaii continues to use a 200-transaction economic nexus threshold.
Does Hawaii have sales tax?
No, Hawaii uses General Excise Tax (GET) rather than a traditional sales tax.
Can I have Hawaii nexus without reaching $100,000?
Yes, reaching 200 transactions can establish economic nexus. Physical presence can also create nexus independently of the economic thresholds.
Can Hawaii GET be passed on to customers?
Yes, businesses can choose to pass GET and the applicable county surcharge on to customers, although they aren’t required to do so.
Final Thoughts
Hawaii’s economic nexus rules require remote sellers to monitor both revenue and transaction volume. Businesses should also remember that Hawaii uses GET rather than a traditional sales tax, which changes how the tax is imposed and potentially passed on to customers.
Remote sellers should monitor their Hawaii activity while also considering marketplace sales and any physical presence in the state.
RJM Tax Exemption can help you determine whether you have nexus in Hawaii and assist with GET registration, filing and Voluntary Disclosure Agreements where required.
Last updated: August 2026. Tax rules can change. Always check current Hawaii Department of Taxation guidance when determining your obligations.
