Due to a few considerations, purchasing an automobile in Hawaii may be more expensive than in other states. First off, since Hawaii is an island state, most vehicles must be transported there from the mainland. Particularly for bigger or heavier cars, this may raise the price of the vehicle. Additionally, Hawaii has some of the highest gas costs in the nation, which over time can raise the cost of owning and operating a car. Is Hawaii a state where there is no sales tax?
Unlike many other states, Hawaii does not levy a typical sales tax. The general excise tax (GET), which is in place in Hawaii, is instead levied on the majority of transactions, including the sale of vehicles. The GET is a tax on a business’s gross revenue, therefore it is deducted from the entire sales price of a vehicle rather than simply the seller’s profit.
Do I Have to Pay Sales Tax in Hawaii for a Used Car? Yes, you will still have to pay a GET in Hawaii if you buy a used automobile. Depending on the county where the vehicle is purchased, the tax rate varies. For instance, the GET rate is currently 4.5% on Oahu but it is 4.166% on Hawaii Island. Does Hawaii Tax Vehicles as Personal Property? Hawaii imposes a personal property tax on automobiles in addition to the GET. This tax is collected annually from the county where the vehicle is registered and is dependent on the value of the vehicle. Depending on the jurisdiction, the tax’s amount fluctuates, although it often hovers around 1.25% of the car’s worth.
In conclusion, due to expenses like high gas prices and shipping charges, purchasing a car in Hawaii can be more expensive. Despite the absence of a traditional sales tax, buyers of vehicles in Hawaii must nevertheless pay a general excise tax. Vehicles are also subject to a personal property tax that is based on their value and assessed yearly. When planning your budget for a car purchase in Hawaii, it’s crucial to consider these taxes.