Sales tax deduction in Hawaii
Varies
Is Sales Tax Deductible in Hawaii?
Short answer: Only instead of income tax: itemizers in Hawaii pick sales tax (4% state rate, about 4.5% with local taxes) or state income tax, whichever is bigger. There is no true sales tax; the 4% general excise tax (GET) is levied on businesses and usually passed on to buyers. All four counties add a 0.5% surcharge, and the maximum pass-on rate is 4.712%.
Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Sales tax deduction in Hawaii
Varies
Individuals / Personal Taxes
Only instead of income tax: itemizers in Hawaii pick sales tax (4% state rate, about 4.5% with local taxes) or state income tax, whichever is bigger. There is no true sales tax; the 4% general excise tax (GET) is levied on businesses and usually passed on to buyers. All four counties add a 0.5% surcharge, and the maximum pass-on rate is 4.712%.
Business justification
Only instead of income tax: itemizers in Hawaii pick sales tax (4% state rate, about 4.5% with local taxes) or state income tax, whichever is bigger. There is no true sales tax; the 4% general excise tax (GET) is levied on businesses and usually passed on to buyers. All four counties add a 0.5% surcharge, and the maximum pass-on rate is 4.712%. Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).
Category
- Personal Tax Deductions