Hawaii Tax Relief: GET, TAT & State Payment Options

Owe Hawaii state taxes or received a notice from the Hawaii Department of Taxation (DOTAX)? Do not guess your next move. Hawaii taxes are different from most states — there is no sales tax, but there is GET (General Excise Tax), TAT (Transient Accommodations Tax), and unique collection rules. We review your Hawaii tax balance, notice, deadline, payment options, and collection risk so you know what to do next.

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See Hawaii Tax Relief Options

No guarantee of outcome. We will tell you if settlement is not realistic. A review by phone: (888) 260-9441

Reviewed by William McLee, Enrolled Agent

Last reviewed: June 27, 2026

Reviews content for accuracy against official sources. About our review process

Received a Final Assessment, tax lien notice, bank levy, wage garnishment, refund offset, or business GET/TAT notice from Hawaii? These notices may carry appeal or collection deadlines, so it is worth understanding them before you respond.

These are not normal bills.

Deadlines and collection risk matter.

Check My Hawaii Collection Risk

Speak with a tax relief specialist: (888) 260-9441

Hawaii Tax Relief Overview

Owing Hawaii state taxes is different from owing the IRS (Internal Revenue Service). The Hawaii Department of Taxation (DOTAX) has its own rules, deadlines, and collection tools. Federal tax relief options do not automatically apply to Hawaii state tax debt.

Important: Hawaii does NOT have a sales tax. Instead, Hawaii imposes the General Excise Tax (GET) — a privilege tax on businesses measured on gross receipts. GET is imposed on the seller/business, not the customer. For most retail activities, the combined rate is 4.5% (4% state + 0.5% county surcharge). If you owe GET, the rules and collection procedures are specific to Hawaii.

Hawaii also has an Offer in Compromise (OIC) program that allows eligible taxpayers to settle tax debt for less than the full amount using Form CM-1. Offers over $50,000 require governor approval; the director of taxation can approve offers of $50,000 or less.

Depending on your situation, you may need one or more of the following:

A payment plan to pay over time
An Offer in Compromise to settle for less than you owe
An appeal if you received a Final Assessment you disagree with
Penalty relief if penalties make the balance impossible to pay
Lien release or levy resolution if collection action has started
Filing help if you have unfiled Hawaii tax returns

If you run a business in Hawaii and owe withholding tax, the stakes are higher: withholding taxes can create personal liability for responsible persons under HRS 235-64(b), because those funds are held in trust for the state. GET and TAT carry their own risks for businesses too, but they are not trust-fund taxes in the same sense — see the Business Tax section below for how each is treated.

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Hawaii Tax Relief Options at a Glance

Option	What It Does	Best For	Key Deadline / Note
Payment Plan	Pay balance over time via Hawaii Tax Online or Form D-100	Can afford monthly payments; balance over $100	$50 fee; interest continues
Offer in Compromise	Settle tax debt for less than the full amount via Form CM-1	Cannot pay in full; doubt as to liability or collectability	Governor approves >$50K; Director approves ≤$50K
Penalty Relief	Request waiver of penalties for reasonable cause	Penalties are large; circumstances are beyond your control	Reasonable cause required; timing requirements vary by case
Appeal	Challenge the assessment at the AADR, Board of Review, or Tax Appeal Court	You disagree with the amount owed and have proof	30 days from final assessment
Lien Release	Remove public tax lien from records	Lien filed, but balance paid, or plan approved	15-year collection period
Levy / Garnishment Help	Respond to bank levy or 25% wage garnishment	Bank account frozen or wages being garnished	Deadlines are tight once a levy is served — review your notice promptly

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Hawaii GET and TAT Quick Reference

Hawaii's tax system is unique. Here is what every taxpayer and business owner should know.

General Excise Tax (GET)

NOT a sales tax. GET is a privilege tax on the seller/business, not the customer.

Retail rate: 4% state + 0.5% county = 4.5% total
Wholesale rate: 0.5%
Insurance commissions: 0.15%
Applies to nearly all business activity, including services, rentals, and commissions
No exemptions based on the customer's tax-exempt status (nonprofits, government generally taxable)
Businesses may pass GET on to customers, but are not required to

Transient Accommodations Tax (TAT)

A tax on operators of transient accommodations.

Rate: 11% effective January 1, 2026, through December 31, 2030 (Tax Announcement 2025-04)
Applies to gross rental proceeds from transient accommodations
Transient = stays less than 180 consecutive days
Usually imposed on operators, except time-share occupants, who are taxed directly, with the plan manager liable
Operators must also pay GET at 4% plus 0.5% county surcharge
Timeshares are taxed at the fair market rental value

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What Hawaii Tax Notice Did You Receive?

Select your notice type for a quick explanation of what it means and your options.

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Not Sure Where to Start?

We can review your Hawaii tax notice, balance, and deadlines — and explain your options in plain English. Call (888) 260-9441 or request a free review. We will tell you if settlement is not realistic.

Get Hawaii Tax Relief Review

No pressure. No guarantee. Just a clear review of your options.

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What the Hawaii Department of Taxation Can Do to Collect

If you owe Hawaii state taxes and do not address the balance, DOTAX has a range of collection tools. Not every case reaches the most serious actions, but the longer a balance goes unpaid, the more options the state may use.

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Add Penalties and Interest

Late filing, late payment, and other penalties can add up quickly under HRS 231-39. Interest continues to accrue on the unpaid balance until it is paid in full. Penalty relief may be available for reasonable cause.

Send Collection Notices

DOTAX sends a series of notices before taking enforced collection action. Ignoring these notices can lead to more serious consequences. The Notice of Final Assessment is a critical document with a strict 30-day appeal deadline.

Issue a Notice of Final Assessment

If returns are not filed or taxes remain unpaid, DOTAX may issue a Notice of Final Assessment. This is a formal determination of the amount owed and triggers a 30-day deadline to appeal to the Board of Review or Tax Appeal Court.

Offset Refunds

Both Hawaii state tax refunds and federal tax refunds may be captured and applied to your Hawaii tax balance through the Setoff Program under HRS 231-51 to 231-59. Refund offsets continue even during an active payment plan.

File a Certificate of Tax Lien

A tax lien is a public claim recorded in the Bureau of Conveyances (or with the county director of finance for motor vehicles). It attaches to all real and personal property and lasts for 15 years from the date of assessment.

Levy or Seize Assets

Under HRS 231-25, DOTAX may levy bank accounts, garnish wages at 25% of gross pay (continuous), seize property, and use third-party levies. Business tax debts may be pursued aggressively.

Refer to Private Collection Agency

DOTAX may refer delinquent accounts to private collection agencies. Collection agencies may recover their fee from the taxpayer.

Convert Lien to Civil Judgment

After 365 days from the recording date, if no response is received, DOTAX may seek to convert the lien into a civil judgment, which can significantly extend the enforceability of the collection.

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Hawaii Tax Payment Plans

If you cannot pay your Hawaii state tax balance in full, a payment plan (installment agreement) may be an option. Payment plans are available under HRS 231-25.5 for taxpayers unable to pay in full.

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Important: Refund Offsets Continue During Payment Plans

Even while your Hawaii payment plan is active, both Hawaii state tax refunds and federal tax refunds may still be captured and applied to your balance. The payment plan does not prevent refund offset. Any state or federal refunds will be applied against your outstanding balance.

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How to Apply for a Hawaii Payment Plan

Method	Requirements
Online — Hawaii Tax Online	Unpaid balance more than $100; no active payment plan; not in bankruptcy; not referred to private collection agency; no pending OIC
Paper — Form D-100	Submit to the Collection Branch via mail, fax, or email

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Key Terms for Hawaii Payment Plans

Requirement	Details
Processing Fee	$50 non-refundable (HRS 231-25.5)
Interest & Penalties	Continue to accrue on the unpaid balance until paid in full
Required Returns	All required tax returns must be filed; all future returns must be filed on time and paid in full
New Liabilities	Cannot incur any new liabilities while on a payment plan — new liabilities will default the plan
Refund Offset	Any state or federal refunds will be applied against the outstanding balance
Lien Requirement	State tax lien initiated for installment plans exceeding one year (depending on balance, circumstances, compliance history)
Statute Extension	Participation constitutes a voluntary extension of the collection period for the duration of the payment plan
Extra Payments	Additional payments shorten the duration, but do not stop scheduled payments unless revised
Financial Docs (Over 12 Months)	Form CM-2 (individual) or CM-2B (corporation/partnership) Statement of Financial Condition, plus the most recent 3 months of bank statements

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See If a Hawaii Payment Plan Makes Sense

A Hawaii payment plan may help if you cannot pay in full, but approval is not automatic. The right move depends on your balance, notice status, income, assets, and whether collection has already started. We will tell you if settlement is not realistic.

See If a Hawaii Payment Plan Makes Sense

No guarantee of approval. DOTAX makes the final decision.

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Which Hawaii Tax Relief Option Fits Your Situation?

Option	Best If	Deadline	Cost
Payment Plan	You can't pay in full but can afford monthly payments ($50 fee; balance over $100)	Apply anytime before enforced collection; sooner is better	$50 fee; interest and penalties continue
Offer in Compromise	You cannot pay in full and have doubt as to liability or collectability	Submit Form CM-1 when all returns are filed	20% of the offer (lump sum) or first payment (periodic); low-income exemption available
Penalty Relief	Penalties make the balance unpayable, and you have reasonable cause	Submit a written request based on reasonable cause; timing varies by case	No fee
Appeal	You disagree with the assessment and have evidence	30 days from final assessment mailing	No fee (AADR/BOR); filing fees required for Tax Appeal Court
Lien / Levy Help	A lien has been filed, or your bank account/wages are being levied	Review your notice promptly — wage levies are continuous	May require full payment or hardship documentation

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Hawaii Offer in Compromise (OIC)

Hawaii has an offer-in-compromise program. Under HRS 231-3(10) and HAR 18-231-3-10, DOTAX may accept an offer to settle tax debt for less than the full amount.

Good News: Hawaii Accepts OICs

Hawaii allows taxpayers to settle tax debt through an Offer in Compromise. This is a meaningful option if you genuinely cannot pay the full balance.

Grounds for a Hawaii OIC

Doubt as to liability — There is a genuine dispute about whether the tax is legally owed
Doubt as to collectability — Full payment would create an economic hardship; the taxpayer lacks assets and income to pay
Effective tax administration — Exceptional circumstances where collecting the full amount would be unfair or inequitable

Requirements for a Hawaii OIC

Unable to generate future income due to retirement or health issues (long-term disability or certified permanent medical condition)
Value of total assets is less than the tax debt
No significant passive income streams (rental, investment, business income)
All required tax returns filed through the current period
No prior tax relief (bankruptcy discharge, statute write-off, innocent spouse relief, prior settlement)

Required Forms

Form	Purpose
Form CM-1	Offer in Compromise
Form CM-2	Statement of Financial Condition (individuals)
Form CM-2B	Statement of Financial Condition (corporations, partnerships)

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Payment Required With Offer

Lump sum offer: 20% of the offer amount must accompany Form CM-1
Periodic payment offer: First proposed payment must accompany Form CM-1
Low-income exemption: Low-to-moderate income individuals, per IRS guidelines, are exempt from payment with the offer

Approval Authority

Tax Liability (excluding penalties & interest)	Approval Required From
More than $50,000	Governor of Hawaii
$50,000 or less	Director of Taxation (after posting on website 5 calendar days)

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Other Important OIC Rules

Collection moratorium: Collection activities — including levies, garnishments, referrals to collection agencies, and additional liens — are suspended while an OIC is being evaluated.
Public disclosure: Approved OICs are on file and open to public inspection (taxpayer name, amounts, reasons); proposed OICs under $50,000 posted 5 days before approval
Collateral agreement: May be required for 5-10 years if future earnings potential exists; requires filing all future returns on time and paying in full
Rejection: Payment is applied to tax liability (first costs, then interest, then penalties, then tax)

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See If a Hawaii Offer in Compromise Fits Your Situation

A Hawaii OIC may be a realistic option if you cannot pay in full, your assets are worth less than the debt, and you have limited future income potential. We review your financials and tell you honestly whether an OIC is worth pursuing.

See If a Hawaii OIC Makes Sense

No guarantee of approval. Governor or Director makes the final decision.

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Hawaii Tax Appeals: Three Forums

Hawaii offers three separate forums for tax appeals. Choosing the right one and meeting the deadline is critical. The deadline for most appeals is 30 calendar days after the final assessment is mailed.

30-Day Appeal Deadline

The appeal deadline is 30 calendar days from the date the final assessment is mailed. Missing this deadline can severely limit your ability to challenge the assessment.

The Three Hawaii Appeal Forums

Forum	Type	Fee	Deadline	Key Features
AADR — Administrative Appeals & Dispute Resolution	Informal, streamlined process within DOTAX	No fee	20 days (proposed assessment); 30 days (final assessment)	Fastest option; within DOTAX; cannot use if already appealed the proposed assessment and the case was accepted
Board of Review (BOR)	Informal forum; 3 full-time salaried members appointed by the Governor	No fee	30 days after the final assessment is mailed	First appeal may be made without payment of disputed taxes; informal hearings; either party may appeal to TAC within 30 days
Tax Appeal Court (TAC)	Court of record; formal procedures	Filing fees required (varies by case type)	30 days after final assessment mailed (or 30 days after BOR decision)	Formal court rules; an attorney must represent corporations; small claims available for assessments under $1,000; decision appealable to the Intermediate Court of Appeals within 30 days

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Important Appeal Rules

A proposed assessment cannot be appealed directly to BOR or TAC. You have 30 days from the mailing date to submit additional information, request an informal conference, or appeal to AADR.
The collection is stayed (paused) if you appeal to BOR or TAC without payment (first appeal).
If you pay under protest, you must file a complaint with TAC within 30 days of payment under HRS 40-35.
Under Act 118 (SLH 2025, effective May 29, 2025), the collection period is suspended during the period an assessment is pending on appeal before BOR or TAC.

Payment Under Protest

As an alternative to appeal, you may pay the disputed amount with a signed protest letter within 30 days of the final assessment. To recover, you must file a complaint with the Tax Appeal Court within 30 days of payment under HRS 40-35.

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Review My Hawaii Notice

If you received a Hawaii Notice of Final Assessment, review the 30-day deadline before doing anything else. Missing an appeal deadline can limit your options.

Review My Hawaii Notice

This is not legal advice. Consult a qualified representative for your specific situation.

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Hawaii Penalty Relief

Penalty relief is different from a payment plan. A payment plan lets you pay over time. Penalty relief asks DOTAX to reduce or waive penalties when allowed under state rules.

Hawaii penalties may be waived upon a determination of "reasonable cause" under HRS 231-39 and the Hawaii Taxpayer Bill of Rights.

Hawaii's Reasonable Cause Standard

Reasonable cause means the failure to file or pay on time was due to circumstances beyond the taxpayer's control — not due to the taxpayer's own carelessness, neglect, or willful disregard.

Qualifying Circumstances

Death or serious illness of the taxpayer or an immediate family member
Natural disaster or casualty event
Inability to access the EFT system due to a system failure beyond reasonable control
Failure of the EFT system to properly apply the payment
Error by the Data Collection Center, state treasury, or department
Good faith effort to comply for first-time EFT users, with circumstances beyond reasonable control
Mistake or inadvertence when the taxpayer attempted to correctly and timely initiate EFT

Important Requirements

The burden of proving reasonable cause is on the taxpayer
You must submit a written request outlining your reasonable cause basis
DOTAX may consider your payment history, experience with electronic payments, and prior compliance
The Director may waive fees in cases of hardship

Penalty Relief vs. Payment Plan vs. OIC

These are three separate processes. A payment plan does not automatically remove penalties. Penalty relief must be requested separately and approved based on reasonable cause. An OIC is for settling the underlying tax debt, not just penalties. Even if penalties are waived, the underlying tax and interest must still be paid.

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Hawaii Tax Liens

A tax lien is a public claim filed by the state against your property. In Hawaii, DOTAX files a Certificate of Tax Lien to secure the state's interest as a creditor. It can affect title, refinancing, and the sale of property, as well as your business reputation, more directly than it affects a consumer credit report.

How Hawaii Tax Liens Work

Filing: Certificate recorded in the Bureau of Conveyances (Honolulu) or filed with the county director of finance for motor vehicles. The certificate includes the amount of taxes due, taxpayer identification, last known address, tax type, and the date the liability was assessed.
Effect: Creates a lien on all real and personal property of the taxpayer, including land court property, without further action.
Duration: 15 years from the date of assessment to commence collection by levy or court proceeding (HRS 235-111, 237-40, 237D-9, 238-7).
Tolling: The collection period is suspended during the pendency of an appeal before BOR or TAC under Act 118 (SLH 2025).
Prior law: For taxes assessed before July 1, 2009, a levy or proceeding was barred after June 30, 2024.

Judgment Conversion

After 365 days from the recording date, if there is no response from the taxpayer, DOTAX may file a petition with the circuit court to convert the lien into a civil judgment. The court shall issue the judgment for the lien amount. Interest ceases to accrue after the collection period expires.

Lien Release and Discharge

Satisfaction: Certificate of release issued when liability is satisfied
Partial discharge: Certificate of discharge issued for part of the property upon partial payment (not less than the value of the lien on the discharged part)
Unenforceable: Certificate of discharge must be issued when liability becomes unenforceable by lapse of time (Act 68, SLH 2025)

Foreclosure

DOTAX may foreclose through court proceedings or distraint under HRS 231-25. Property may be sold at public auction after at least 15 days' notice in a newspaper or posting in 3 public places.

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Hawaii Bank Levy and Property Levy

Under HRS 231-25, DOTAX may levy upon all property and rights to property (real or personal, tangible or intangible). This includes bank accounts, accounts receivable, and other obligations.

Bank Levy

The levy may reach funds in the account at the time of levy, up to the amount of the liability
The financial institution must surrender property upon the demand of DOTAX
No warning is required before the levy is served
Multiple levies may be issued if the first is insufficient

Property Levy and Exemptions

Property may be seized and sold at public auction after notice. However, certain property is exempt from levy:

Wearing apparel
Schoolbooks
Fuel
Provisions
Furniture
Personal effects
Books and tools of trade, business, or profession
Unemployment benefits
Undelivered mail

Third-Party Levy

DOTAX may levy on any person in possession of or obligated with respect to property subject to levy. The third party must surrender property or discharge the obligation upon demand (except property subject to judicial attachment/execution).

Cost Recovery Fees

Under HRS 231-25.5, DOTAX may add fees for collection costs, including attorneys' fees, collection agency fees, court filing fees, and recording fees.

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Hawaii Wage Garnishment for Tax Debt

Wage garnishment means Hawaii can take money directly from your paycheck to pay your state tax debt. Under HRS 231-25, DOTAX imposes a continuous levy on individuals' salaries, wages, or other compensation.

How Much Can Hawaii Take?

Your employer is required to withhold 25% of your gross salary, wages, or compensation. The levy is continuous — it continues from the date it was first made until it is released.

Continuous Levy. Hawaii's wage levy is continuous. Once started, it remains in effect from pay period to pay period until the debt is paid in full. The levy cannot be stopped by entering a payment agreement or making partial payments. Additional payments only shorten the duration.

Key Facts About Hawaii Wage Levies

Rate: 25% of gross salary, wages, or compensation
Continuous: Yes — continues until released by DOTAX
Employer responsibility: Must withhold 25% and remit to DOTAX until the debt is paid in full
Cannot be stopped by payment plan: Entering a payment agreement or making partial payments does not stop the levy
Hardship reduction: May be reduced for significant financial hardship (food, rent, medication) — requires Form CM-2 and supporting documents
Release conditions: Debt paid in full, or proof of bankruptcy filing
Collection suspension: Other collection actions (e.g., AG referral) are suspended while the wage levy is in effect and in good standing
Refund intercept: State and federal refunds may be intercepted to pay down the liability

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Get Help With a Hawaii Collection Notice

If Hawaii has filed a lien, frozen a bank account, started wage garnishment, or sent a serious collection notice, waiting usually makes the problem worse. Get the notice reviewed before you make random payments or ignore the deadline.

Get Help With a Hawaii Collection Notice

No guarantee of outcome. We review your facts and explain your options. We will tell you if settlement is not realistic.

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Hawaii Collection Statute of Limitations

Hawaii has a 15-year collection period — longer than the IRS's 10-year period. Understanding this timeline is critical for evaluating your options.

Aspect	Rule
General rule	15 years from the date of assessment to commence collection by levy or court proceeding
Authority	HRS 235-111, 237-40, 237D-9, 238-7, 243-14, 247-6.5, 251-8; Act 166, SLH 2009
Prior law	For taxes assessed before July 1, 2009, the levy was barred after June 30, 2024
Tolling during appeal	Collection period is suspended during the period an assessment is pending on appeal before BOR or TAC (Act 118, SLH 2025, effective May 29, 2025)
Suspension period	From the filing date of the notice of appeal to the conclusion, dismissal, or withdrawal
Federal comparison	Hawaii's 15-year period was modeled after the IRS's 10-year period (IRC 6502)

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Payment Plans Extend the Statute

Participating in a Hawaii installment payment plan constitutes a voluntary extension of the collection period for the duration of the payment plan. This means the 15-year clock is paused while you are on the plan.

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Hawaii Unfiled Tax Returns

If you have not filed Hawaii tax returns for one or more years, that can block most resolution options. DOTAX may estimate your tax and issue assessments based on those estimates — sometimes higher than what you actually owe.

Filing accurate returns can sometimes reduce an incorrect balance. But do not rush or file bad returns. It's better to get the returns prepared correctly with the right income, deductions, and Hawaii credits.

Why Filing Matters

Unfiled returns block payment plan eligibility
DOTAX may issue substitute returns with a higher tax than you actually owe
Penalty relief eligibility can depend on your filing status, though requirements vary by case
An Offer in Compromise requires all returns to be filed through the current period
The collection period generally runs from the date of assessment, not from when a return is filed

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Hawaii Business, GET, and Withholding Tax Debt

Business tax debt is higher risk than individual income tax debt, and the reasons differ by tax type. Withholding tax is particularly serious because the amounts withheld are held in trust by the employer for the state. GET and TAT are treated seriously too, but as privilege taxes on the business rather than trust-fund taxes — the collection tools and risks below still apply broadly to all three.

Responsible Person Warning: Personal Liability for Withholding Tax

Under HRS 235-64(b), any person (excluding those with only ministerial duties) who is under a duty to deduct, withhold, or pay over the tax and who willfully fails to perform such duty may be held personally liable.

Who can be held liable? Any person with control over disbursements who willfully fails to pay over withheld taxes, including officers, managers of LLCs, and partnership members.

Key points:

Two or more persons may be assessed jointly or in the alternative
Tax is collected only once with respect to the same wages
Voluntary or involuntary dissolution of the employer does NOT discharge the responsible person's liability
Effective for levies made on or after July 1, 2002, and withholding for payroll periods beginning on or after July 1, 2002

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GET for Businesses

GET applies to nearly all business activity in Hawaii. Key points for business owners:

Retail rate: 4% state + 0.5% county = 4.5% for most activities
Wholesale rate: 0.5%
Insurance commissions: 0.15%
Sales to tax-exempt organizations are generally still taxable
Sales to nonprofits and government are generally taxable (except direct sales to the federal government or credit unions, which are deductible)
Businesses may, but are not required to, visibly pass GET on to customers
Maximum pass-on rate to cover full GET expense on a $100 sale is 4.712% (Tax Facts 37-1)

Withholding Tax

Under Chapter 235, HRS (Sections 235-61 through 235-67), employers must withhold Hawaii income tax from employee wages. All amounts withheld are held in trust by the employer for the state. Failure to remit can trigger liability under HRS 235-64(b) for the responsible person.

TAT for Accommodation Operators

Operators of transient accommodations must pay TAT at 11% (effective 1/1/2026) on gross rental proceeds, plus GET at 4.5%. This applies to hotels, vacation rentals, B&Bs, condos, and similar accommodations rented for less than 180 consecutive days.

Mandatory Electronic Payment

Electronic funds transfer (EFT) is required for:

Businesses with $100,000+ in annual GET liability (the same $100,000 threshold applies to use tax, TAT, and other listed taxes)
Employers with $40,000+ in withholding tax per year

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Review My Hawaii Business Tax Debt

GET, TAT, and withholding tax problems can create personal liability for business owners. If DOTAX believes tax was collected or withheld but not paid, do not treat it like ordinary income tax debt. We will tell you if settlement is not realistic.

Review My Hawaii Business Tax Debt

No pressure. No guarantee. Just a clear review of your options.

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Hawaii Tax Relief Tools & Calculators

Use our Hawaii calculators to estimate penalties, interest, or garnishment risk. Then request a review if the numbers show the balance is growing or collection is already active.

Hawaii Tax Penalty & Interest Calculator

Estimate how much penalties and interest have added to your balance.

Open Calculator →

Hawaii Wage Garnishment Calculator

See how much could be taken from your paycheck. Hawaii allows up to 25% of gross wages.

Hawaii Tax Online (HiTax)

Access your Hawaii tax account online to view balances, make payments electronically, and apply for payment plans.

HiTax →

Hawaii Tax Forms

Find Hawaii state tax forms from the official DOTAX website.

DOTAX Forms →

Hawaii Tax Clearance

Request a certificate confirming all returns filed and taxes paid (required for state/county contracts of $2,500 or more).

Tax Clearance Info →

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Hawaii Government Resources

These are the official Hawaii sources for tax information, payment plans, appeals, and rules. Always check the official source for the most current information.

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Not Sure What to Do With Your Hawaii Tax Situation?

Select the card that matches your situation to jump to the relevant section.

Received a Notice of Final Assessment

Review the 30-day appeal deadline first. You can appeal to AADR (informal), Board of Review (informal, no fee), or Tax Appeal Court (formal). Do not let the deadline pass.

Jump to Appeals Section →

Cannot Pay in Full

Review payment plan options (Form D-100, $50 fee) or consider an Offer in Compromise (Form CM-1). Hawaii has an OIC program that can settle tax debt for less than the full amount.

Jump to Payment Plan Section →

Penalties Are the Main Issue

Review penalty relief options. Hawaii requires reasonable cause — circumstances beyond the taxpayer's control, not carelessness or neglect.

Jump to Penalty Relief Section →

Lien, Levy, or Garnishment Started

Review your notice closely. Hawaii wage levies are continuous at 25% of gross pay, bank levies may reach funds up to the amount owed, and liens last 15 years.

Jump to Lien Section → | Jump to Levy Section → | Jump to Garnishment Section →

Business GET, TAT, or Withholding Tax Debt

Responsible persons can face personal liability for unpaid withholding tax under HRS 235-64(b). GET is not a sales tax—it applies to nearly all business activity.

Jump to Business Tax Section →

Unfiled Tax Returns

Unfiled returns block most resolution options. File accurate returns before applying for a payment plan or OIC; penalty-relief eligibility varies by case.

Jump to Unfiled Returns Section →

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Frequently Asked Questions

Does Hawaii have a sales tax?

No. Hawaii does not have a sales tax. Hawaii imposes a General Excise Tax (GET), which is a privilege tax on the seller/business, not the customer. GET applies to nearly all business activities, including retail sales, services, construction contracting, rental/leasing, and commissions. The general rate is 4% state plus a 0.5% county surcharge (4.5% total). Lower rates apply to wholesaling (0.5%) and insurance commissions (0.15%). Unlike a sales tax, there are virtually no exemptions based on the customer's status — sales to nonprofits, religious organizations, and government are generally still taxable.

What is Hawaii's GET rate?

Hawaii's General Excise Tax (GET) rate is 4.5% for most retail activities (4% state + 0.5% county surcharge). The county surcharge applies only to transactions subject to the 4% state rate, not to transactions subject to the 0.5% or 0.15% rates. Here are the key rates:

4.5% (4% + 0.5% county) — Retail sales, services, construction contracting, rental/leasing, commissions (except insurance), theaters, and amusements
0.5% — Wholesaling, manufacturing, producing, wholesale services
0.15% — Insurance commissions

The GET is imposed on the seller/business, not the customer. Businesses may (but are not required to) visibly pass GET on to customers. The maximum pass-on rate to cover full GET expense on a $100 sale is 4.712% (Tax Facts 37-1).

Does Hawaii have an offer in compromise?

Yes. Hawaii has an Offer in Compromise (OIC) program under HRS 231-3(10) and HAR 18-231-3-10. Taxpayers use Form CM-1 to settle tax debt for less than the full amount. Grounds include:

Doubt as to liability — genuine dispute about whether the tax is owed
Doubt as to collectability — cannot pay in full due to limited assets and income
Effective tax administration — exceptional circumstances where full collection would be unfair

Approval authority: Offers where the tax liability (excluding penalties and interest) exceeds $50,000 require the governor's approval. The director of taxation can approve offers of $50,000 or less after they are posted on the website for 5 calendar days. Collection activities — including levies, garnishments, and additional liens — are suspended while the OIC is being evaluated.

What is Hawaii's TAT?

TAT stands for Transient Accommodations Tax. It is a tax imposed on operators of transient accommodations at a rate of 11% effective January 1, 2026, through December 31, 2030. It applies to gross rental proceeds from furnishing transient accommodations — rooms, apartments, houses, condominiums, beach houses, hotel rooms, suites, and similar living accommodations rented for less than 180 consecutive days. A "transient" is any person who has a permanent home elsewhere or does not intend to make the accommodation a permanent residence. Operators must also pay GET at 4% plus the 0.5% county surcharge (4.5% total). Time-share occupancy is also subject to TAT at fair market rental value, with the time-share plan manager liable.

Can I get a payment plan for Hawaii state taxes?

Yes, Hawaii offers installment payment agreements under HRS 231-25.5. You can apply online through Hawaii Tax Online (hitax.hawaii.gov) or submit Form D-100 to the Collection Branch. To qualify online, your unpaid balance must be more than $100, you must have no active payment plan, not be in bankruptcy, not be referred to a private collection agency, and have no pending OIC. Plans require a $50 non-refundable processing fee; all returns must be filed, and interest and penalties continue to accrue. Plans exceeding one year may require a state tax lien and financial documentation (Forms CM-2 or CM-2B plus 3 months of bank statements). Any state or federal refunds will be offset against your balance. New liabilities while on a plan will default on the agreement.

Does a Hawaii payment plan stop penalties and interest?

No. A payment plan lets you pay over time, but interest and penalties continue to accrue on the unpaid balance until it is paid in full. Penalties already assessed remain unless separately waived through Hawaii's reasonable cause process. The plan does not erase the underlying tax debt. If you default, collection action may resume immediately. Additionally, any state or federal tax refunds will be intercepted and applied to your balance while the plan is active.

Can Hawaii take my state or federal refund while I am on a payment plan?

Yes. Hawaii participates in the Setoff Program under HRS 231-51 to 231-59. DOTAX offsets both Hawaii state tax refunds and federal income tax refunds against state tax debts. The state will continue to offset refunds even when a taxpayer is on an approved payment plan. You may request a hearing before the setoff is finalized. This applies to all state tax debts, including individual income tax, GET, and TAT.

What is a Hawaii Notice of Final Assessment?

A Notice of Final Assessment is a formal determination by DOTAX that you owe a specific amount of tax, penalties, and interest. It is issued when returns were not filed or taxes remain unpaid. Once issued, it triggers a 30-day deadline to appeal to the Board of Review or Tax Appeal Court. Missing this deadline makes the assessment final and much harder to challenge. Before a final assessment, you may receive a Notice of Proposed Assessment, which gives you 30 days to submit additional information, request an informal conference, or appeal to AADR.

Can I appeal a Hawaii tax assessment?

Yes. Hawaii offers three appeal forums: (1) AADR (Administrative Appeals & Dispute Resolution) — informal, streamlined, no fee; deadline is 20 days for proposed assessments, 30 days for final assessments. (2) Board of Review (BOR) — informal, no fee, three governor-appointed members; deadline is 30 days after the final assessment is mailed; first appeal may be made without paying disputed taxes. (3) Tax Appeal Court (TAC) — a formal court of record with filing fees; deadline is 30 days after final assessment (or 30 days after BOR decision); an attorney must represent corporations; small claims available for assessments under $1,000. The collection stays during the first appeal to BOR or TAC. Under Act 118 (2025), the collection period is suspended during appeals.

Can Hawaii file a tax lien?

Yes. DOTAX files a Certificate of Tax Lien in the Bureau of Conveyances (Honolulu) or with the county director of finance for motor vehicles under HRS 231-33. The lien attaches to all real and personal property and lasts for 15 years from the date of assessment. After 365 days with no taxpayer response, the lien may be converted to a civil judgment. The lien is released upon satisfaction of the debt and may be discharged upon its becoming unenforceable by lapse of time (Act 68, SLH 2025). The lien can affect title, refinancing, and the sale of property, as well as your business reputation, more directly than it affects a consumer credit report.

Can Hawaii levy a bank account?

Yes. Under HRS 231-25, DOTAX may levy upon all property and rights to property, including bank accounts. The financial institution must surrender the funds upon demand. The levy may reach the funds in the account at the time of levy, up to the amount of the tax liability. There is no warning required. Multiple levies may be issued if the first is insufficient. Certain property is exempt from levy, including wearing apparel, schoolbooks, fuel, provisions, furniture, personal effects, tools of trade, unemployment benefits, and undelivered mail.

Can Hawaii garnish wages for state taxes?

Yes. Hawaii imposes a continuous wage levy of 25% of gross salary, wages, or compensation under HRS 231-25. The employer must withhold 25% and remit to DOTAX until the debt is paid in full. The levy is continuous — it continues from the date it was first made until it is released, and it cannot be stopped by entering into a payment agreement or making partial payments. Additional payments only shorten the duration. The levy may be reduced only for significant financial hardship (food, rent, medication), which requires submitting Form CM-2 and supporting documents. Other collection actions are suspended while a wage levy is in effect.

What if I have unfiled Hawaii tax returns?

Unfiled returns can block most resolution options. DOTAX may estimate your tax and issue assessments that exceed what you actually owe. Filing accurate returns can sometimes reduce an incorrect balance. Do not rush or file bad returns — get them prepared correctly with the right income, deductions, and Hawaii credits. All returns must be filed before applying for a payment plan or offer in compromise; penalty-relief eligibility varies by case.

Can Hawaii waive tax penalties?

Yes. Hawaii may waive penalties for reasonable cause under HRS 231-39. Reasonable cause means circumstances beyond the taxpayer's control — not carelessness, neglect, or willful disregard. Qualifying circumstances include death or serious illness, natural disaster, inability to access the EFT system due to system failure, error by the Data Collection Center or state treasury, and other circumstances beyond the taxpayer's control. The burden of proof is on the taxpayer. DOTAX may consider your payment history and prior compliance.

What if my Hawaii tax debt is from GET or payroll withholding?

Withholding tax debt is treated especially seriously by DOTAX because withheld funds are held in trust for the state. Under HRS 235-64(b), any responsible person who willfully fails to withhold or remit required withholding amounts may be held personally liable. This includes officers, managers, and anyone with control over disbursements. Voluntary dissolution of the employer does not discharge the responsible person's liability; it is joint and several, though the tax is collected only once. GET debt carries its own collection risks as a business tax, but GET is a privilege tax on gross receipts rather than a trust-fund tax, so it is evaluated somewhat differently than withholding tax.

How long does Hawaii have to collect tax debt?

Hawaii has 15 years from the date of assessment to commence collection by levy or court proceeding. This is longer than the IRS's 10-year period. The period is suspended (tolled) during the time an assessment is pending on appeal before the Board of Review or Tax Appeal Court (Act 118, SLH 2025, effective May 29, 2025). Participating in a payment plan also extends the period voluntarily for the duration of the plan. For taxes assessed before July 1, 2009, the levy was barred after June 30, 2024.

Does a Hawaii payment plan stop collection?

No. A payment plan does not prevent DOTAX from filing liens, and state and federal refunds may still be offset and applied to your balance. A wage levy, once in effect, continues even if you enter a payment plan. If you default on the plan, collection action may resume immediately. However, other collection actions (such as an AG referral) are suspended while a wage levy is in effect, and the account is in good standing. An OIC evaluation suspends levies, garnishments, and additional liens while the offer is under review.

What is the difference between GET and sales tax?

Hawaii's General Excise Tax (GET) is fundamentally different from a traditional sales tax in several key ways:

Who pays: GET is imposed on the seller/business; sales tax is imposed on the buyer/customer
Scope: GET applies to nearly all business activity, including services, rentals, and commissions — not just retail sales of goods
Exemptions: GET has virtually no exemptions based on the customer's status; sales to nonprofits, government, and religious organizations are generally still taxable
Pass-through: Businesses may (but are not required to) visibly pass GET on to customers; a business cannot claim "no tax" if GET applies
Use tax: Hawaii also has a Use Tax (Chapter 238, HRS) on imports from unlicensed sellers outside Hawaii

Does Hawaii offer innocent spouse relief?

Yes. Hawaii offers three types of relief from joint and several liability on joint state income tax returns using Form N-379:

Innocent Spouse Relief — Understatement of tax due to spouse's erroneous items; taxpayer did not know and had no reason to know
Separation of Liability — Allocate understatement between spouses; available if no longer married, legally separated, or lived apart for 12 months
Equitable Relief — For underpayment of tax when other relief is not available, and it would be unfair to hold the taxpayer liable

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Disclaimer: This page provides general information about Hawaii state tax collection procedures and is not legal advice. Tax laws and agency procedures change. Always consult the official Hawaii Department of Taxation website or a qualified tax professional for advice specific to your situation. No guarantee of any particular outcome is expressed or implied. Approval for payment plans, Offers in Compromise, penalty relief, and other resolutions is discretionary.