Hawaii doesn’t technically have a sales tax — it levies a General Excise Tax (GET) on business activities, which affects how shipping charges are treated.
General Rule
Exempt: Separately stated shipping charges may be exempt from GET.
Taxable: If shipping is included in the product price or bundled with handling, it’s subject to GET.
Handling Charges
Handling fees, or combined “shipping & handling” charges, are considered taxable under GET.
Best Practices for Compliance
- State delivery separately from product costs. 
 
- Avoid bundling shipping and handling together to prevent unnecessary tax. 
 
Example
- $200 taxable goods with $20 separately stated delivery → $20 may be exempt from GET. 
 
- $200 taxable goods with $20 “Shipping & Handling” → $20 is taxable. 
 
Stay Compliant with Kintsugi
Hawaii’s GET system can be confusing for businesses used to sales tax. Kintsugi Intelligence applies the correct treatment so your shipping charges stay compliant.
⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.
