Hawaii General Excise Tax on Construction (2026): Tax on the Whole Remodel
How Hawaii taxes the whole remodel, labor included, and three jobs worked at 4.5%.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in Hawaii
Whole job taxed
General excise tax applies to your gross income from the job, labor included. It's a tax on you, not a sales tax, but you may pass it on.
4%
4% GET plus 0.5% county surcharge
Itemizing or time and materials
Itemizing doesn't remove labor.
Resale certificate: suppliers charge 0.5% on materials
Source: HI DOTAX Tax Facts 99-3 (DOTAX, May 2025)
“Gross income from contracting is subject to GET at 4% plus county surcharge.”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $540 | $0 |
| Kitchen $40,000 job, $15,000 materials | $1,800 | $0 |
| Addition $90,000 job, $35,000 materials | $4,050 | $0 |
On the kitchen: 4.5% on the full $40,000, labor included. General excise tax is on you. Passed on to the customer at up to 4.712%, it's $1,884.80.
Also check
- Payments to licensed subcontractors can be deducted from your gross income.
- Suppliers charge 0.5% general excise tax on materials you buy with a resale certificate.
- If you pass the tax on, the most you can add is 4.712%, because the tax you collect is itself gross income.
Hawaii sales tax questions
Do contractors charge sales tax on labor in Hawaii?
General excise tax applies to your gross income from the job, labor included. It's a tax on you, not a sales tax, but you may pass it on.
What rate applies to a remodel in Hawaii?
4% GET plus 0.5% county surcharge.
Do contractors pay tax on materials in Hawaii?
Materials go into the taxable job price, so they're generally bought for resale or at the wholesale rate.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.