Hawaii State Tax
What Hawaii taxes must be collected from guests and remitted to the State?
- General Excise Tax. This is a tax assessed on all business activities. It is 4.5% on Oahu and 4% on all other islands. For more information: http://tax.hawaii.gov/faq/#get
- Transient Accommodations Tax. The TAT is imposed on gross rental income derived from renting transient accommodations in Hawaii. It is 9.25% for most rentals, 7.25% for time shares. For more information (note: the rates in this link are outdated): http://files.hawaii.gov/tax/legal/taxfacts/tf96-02.htm
What Hawaii forms do I need to file?
- File your Hawaii non-resident N-15 State Tax Return.
- File GE-45 taxes quarterly or monthly as well as your Annual GE-49 form. This is required by both Act 326 (which expires on December 31, 2015) and Act 204 (which takes force on January 1, 2016) [download document].
- File TA-1 taxes quarterly or monthly. This is required by both Act 326 (which expires on December 31, 2015) and Act 204 (which takes force on January 1, 2016). [download document]
- File your Annual TA-2 form. This is required by both Act 326 (which expires on December 31, 2015) and Act 204 (which takes force on January 1, 2016). [download document]
To access these forms and their instructions visit the State of Hawaii Department of Taxation page providing the “Alphabetical list of Hawaii Forms and Publications” [view site].
What other requirements arise from the Hawaii Department of Tax?
Act 204, effective January 1, 2016, continues the following requirements of Act 326.
Operators of transient accommodations are required to do the following, for which there are steep penalties for failure to comply, including the possibility of being found guilty of a misdemeanor:
- Designate a local contact residing on the same island as the transient
- Include the local contact’s name and phone number in any contract or written rental agreement and post clearly in the vacation rental property.
- Include the TAT registration identification number (also called the TAT license number) on all websites and advertisements. Please note that for some taxpayers the TAT license number may contain a different suffix from the taxpayer’s GET license number, so make sure you post the TAT number.
When do I file my GE (General Excise) and TA (Transient Accommodations) taxes?
This depends on how much rental income you collect. Please see the Hawaii Department of Taxation outline on how to determine the measure and rate of taxes due. Includes when reports of taxes due are to be filed. [download document]
Who must file an N-15
As a nonresident or part-year resident of the State of Hawaii, the taxpayer is required to file a Hawaii income tax return if any of the following apply:
- The taxpayer or spouse is doing business in Hawaii during the taxable year regardless of whether the taxpayer or spouse derives any taxable income from that business. “Doing business” includes all activities engaged in or caused to be engaged in with the object of gain or economic benefit, direct or indirect, except personal services performed as an employee under the direction and control of an employer. Example: Every person receiving rents from property owned in Hawaii is “doing business” and must file a return whether or not the person’s expenses exceed the gross rental income.
Who do I contact in Hawaii to get registered to pay taxes?
You can register by going to the following website and follow the Wizard for step-by-step instructions hbe.ehawaii.gov
Where do I find information on the rental of residential real property?
Please refer to the Hawaii Department of Taxation document “Information on the Rental of Residential Real Property” available for download at [download document].
What is a 1099 — MISC
Form 1099-MISC is used to report certain types of payments made in the course of a trade or business. If you’re in business or self-employed, you may need to submit this report to both the Internal Revenue Service and the person or business whom you paid.
When is Form 1099-MISC required?
Businesses will need to fill out a Form 1099-MISC for persons, vendors, subcontractors, independent contractors, and others to whom $600 or more per year is paid for services (including parts and materials). Reporting such payments is required if the recipient of the payment is not a corporation — for example, when the recipient is an individual, partnership, a limited liability company treated as a partnership or sole proprietorship. Payments made to corporations are required in the case of legal fees paid to attorneys.