Hawaii GE & TAT Tax Help in Honolulu

If you’re behind on Hawaii General Excise (GE) tax or Transient Accommodations Tax (TAT), you’re not alone, and it can be fixed. Tax Resolution Services of Hawaii helps rental owners, Airbnb hosts, contractors, and small businesses across Hawaii get registered, catch up on unfiled GE and TAT returns, answer Department of Taxation (DOTAX) audits, and reduce or resolve what they owe. GE and TAT are Hawaii-only taxes. Our team works on them every day and knows how the state’s auditors and collectors operate. Start with a free 30-minute Zoom consultation.

What Are Hawaii GE Tax and TAT?

General Excise (GE) tax is Hawaii’s tax on doing business. It isn’t a sales tax on the customer. It’s a tax on the business’s gross receipts, before expenses, so you can owe GE even in a year when your business or rental loses money. For 2026, DOTAX lists the rates as:

4% on most business income, including retail sales, services, contracting, and rent
0.5% on wholesaling, manufacturing, producing, and certain wholesale services
0.15% on insurance commissions
A 0.5% county surcharge added to the 4% rate in all four counties: Honolulu, Kauai, Hawaii County, and Maui (each through December 31, 2030). The surcharge doesn’t apply to the 0.5% or 0.15% rates.

Transient Accommodations Tax (TAT) applies to rooms, units, and homes rented to a guest for less than 180 consecutive days, such as vacation rentals, Airbnb and VRBO units, hotels, and timeshares. Beginning January 1, 2026, the state TAT rate is 11% of gross rental proceeds. Counties can also charge their own county TAT of up to 3%, which is filed and paid separately with the county. Short-term rental owners must register for and pay both GE tax and TAT.

Who Owes Hawaii GE Tax and TAT?

Almost anyone earning business income in Hawaii needs a GE license. The groups we see behind most often:

Rental property owners. Long-term rent is subject to GE tax, even if you only own one unit.
Airbnb, VRBO and short-term rental hosts. These owe GE and TAT. Many owners assume the platform or their property manager is paying the taxes. That’s often only partly true, or not true at all.
Off-island and mainland owners of Hawaii vacation rentals, who often don’t realize Hawaii taxes apply to them.
Contractors and subcontractors, including sole proprietors paid on a 1099.
Self-employed professionals and gig workers, such as consultants, therapists, realtors, rideshare drivers, and freelancers.
Online sellers, including Etsy, Amazon, and Shopify sellers based in Hawaii.
Out-of-state sellers whose sales into Hawaii are big enough to create a GE filing obligation.

Common GE and TAT Problems We Fix

Never registered. You’ve been earning income for years without a GE or TAT license.
Unfiled periods. Monthly, quarterly, or annual returns (G-45, G-49, TA-1, TA-2) were never filed, sometimes for a decade or more. When an annual return was never filed, Hawaii law has no deadline for the state to assess the GE or TAT tax for that year.
DOTAX audits. The state often finds non-filers by matching federal Schedule C and Schedule E income, 1099s, and platform data against GE and TAT filings.
Assessments. When returns are missing, DOTAX can estimate what you owe and send a bill that’s often higher than the real number.
Penalties and interest. Hawaii charges a failure-to-file penalty of 5% per month, up to 25%. If you file on time but don’t pay the full amount within 60 days of the due date, the state can add up to 20%. Interest runs at 2/3 of 1% per month on the unpaid tax and penalties.
Liens, levies, and garnishments. DOTAX can file tax liens, levy bank accounts, garnish wages, and seize business property.
License problems. An unpaid balance or unfiled returns can hold up license renewals and the tax clearances you need for state contracts.

How We Resolve GE and TAT Tax Problems

Registration and Getting Licensed

We register you for GE and TAT through Hawaii Tax Online and set up a filing schedule you can actually keep.

Catch-Up and Back Filing

We prepare and file every missing GE and TAT return using your real numbers, which often replaces an inflated estimated assessment.

Voluntary Disclosure

If DOTAX hasn’t contacted you yet, coming forward through its Voluntary Disclosure program may be the best move. We prepare the written disclosure and file the missing returns. If DOTAX accepts it, you may avoid an audit and criminal investigation, and the state may waive penalties and some interest. DOTAX generally looks back ten years. You can’t use the program if the state has already contacted you, if you’re under audit or investigation, or if you’ve used it in the past five years, so timing matters.

Penalty Waivers for Reasonable Cause

Penalties are often a big share of a GE or TAT bill. If you had reasonable cause, such as illness, a disaster, or reliance on bad advice, we request a waiver and back it up with documentation. Learn more about penalty abatement.

Audit Representation

We deal with the auditor for you. That includes filing the power of attorney, answering document requests, and challenging income that shouldn’t be taxed or was taxed at the wrong rate. If the auditor won’t move, we take it to a supervisor or appeal.

Payment Plans

If you can’t pay in full, we negotiate a monthly installment agreement with DOTAX that fits your budget. See installment agreements.

Levy Release and Settlements

If DOTAX has already levied your accounts, we move fast to get a levy or garnishment release. When paying in full truly isn’t possible, we look at whether a state compromise is realistic before you apply. If you owe the IRS too, our back taxes help covers both agencies together.

Recent GE Tax Results

11 years of unfiled GE tax: a rental owner’s $37,714 assessment was cut to $17,927.
GE audit of an active trader: the audit closed with no adjustments and $0 owed.
$415,000 GE balance: state levy and seizure stopped with a monthly installment plan.

Read the full stories on our Case Results page

Results depend on each client’s facts and circumstances. Past results do not guarantee a similar outcome.

How We Work: Three Phases

We work in three phases: analysis, compliance, and resolution. Each phase has a flat fee, quoted up front before any work begins, with no hidden charges.

Analysis. We pull your DOTAX account, review notices and filing history, and work out what you really owe and what your options are.
Compliance. We get you registered and file the missing GE and TAT returns so the state will negotiate.
Resolution. We pursue the best outcome available, whether that’s a penalty waiver, an audit result, a payment plan, a levy release, or a settlement.

Our GE & TAT Team

Steven Montgomery, EA, Enrolled Agent
Gorden Gates, EA, Enrolled Agent
Sheri Man, GE & TAT Tax Specialist, who handles registrations, monthly filings, catch-up and back filings, and GE/TAT resolution

Enrolled Agents are federally licensed tax practitioners who can represent taxpayers before the IRS. We represent clients before the Hawaii Department of Taxation too.

Hawaii GE & TAT Tax FAQs

What is the Hawaii GE tax rate in 2026?

The state rate is 4% on most business income, 0.5% on wholesaling and manufacturing, and 0.15% on insurance commissions. Honolulu, Kauai, Hawaii County, and Maui each add a 0.5% county surcharge to the 4% rate. That makes the combined rate 4.5%, and the most a business can visibly pass on to customers is 4.712%.

What is the Hawaii TAT rate in 2026?

Beginning January 1, 2026, the state Transient Accommodations Tax is 11% of gross rental proceeds. Counties can add a county TAT of up to 3%, which is paid separately to the county. GE tax is due on top of TAT.

Do I owe GE tax on a long-term rental?

Yes. Rent from Hawaii property is generally subject to GE tax on gross rents, even if you have a mortgage and the rental shows a loss for income tax.

Does Airbnb pay my Hawaii GE and TAT for me?

Don’t assume it does. Check exactly what the platform collected and remitted. Owners are still responsible for registering and filing their own GE and TAT returns, and many owners we help found out too late that the platform didn’t cover everything.

What happens if I never filed GE tax returns?

DOTAX can estimate your tax, add a failure-to-file penalty of up to 25%, and charge interest of 2/3 of 1% per month. There’s no time limit on assessing tax for a year when no annual return was filed. Filing accurate returns, ideally before the state contacts you, is usually the first step to bringing the bill down.

What is Hawaii’s Voluntary Disclosure program?

It lets you come forward on your own about unfiled or unpaid Hawaii taxes before DOTAX contacts you. You file all the missing returns and pay or arrange payment. In return, the Department may waive penalties and some interest, and you may avoid an audit and criminal investigation. Acceptance is up to DOTAX. The program is closed to people who’ve already been contacted, are under audit, or used it in the past five years.

Can Hawaii waive GE tax penalties?

Sometimes. DOTAX can waive penalties when you show reasonable cause, and penalties can also come down through voluntary disclosure or during an audit. Approval isn’t automatic, and solid documentation matters.

Can I get a payment plan for GE or TAT tax?

Usually, yes. DOTAX offers monthly installment agreements, but you generally need to have all required returns filed first.

Do I need a lawyer for a GE tax audit?

Not usually. Most GE and TAT audits are about records and numbers, and a tax professional who knows Hawaii’s rules can represent you. If criminal exposure is possible, we’ll tell you to talk to a tax attorney.

Get Help With Your GE or TAT Tax Problem

Whether you’ve never filed or you’re in the middle of an audit, a short conversation can clarify your options. Book a free 30-minute Zoom consultation with our team.