Guide to GET Tax Filing
How Often Should You File and Pay GET Taxes in Hawaii Based on Rental Income?
If you're a property owner in Hawaii earning rental income, understanding your General Excise Tax (GET) filing and payment frequency is crucial for staying compliant with state tax laws. The GET is a privilege tax imposed on businesses and individuals for the privilege of operating in Hawaii, and rental income is subject to this tax. The frequency of filing and paying your GET depends on your monthly rental income range. Below, we’ve provided a clear guide, including an official table and a filing schedule grid, to help you determine your filing obligations.
Understanding GET and Filing Frequency
The Hawaii Department of Taxation uses your estimated annual rental income to determine how often you need to file and pay your GET. The tax rate for rental income is typically 4.712% (as of the latest updates), and the filing frequency—whether semi-annual, quarterly, or monthly—is based on your income thresholds. Let’s break it down:
- Semi-Annual Filing: For lower income ranges, you file twice a year, with returns due on July 20th (for the period January 1 to June 30) and January 20th (for the period July 1 to December 31) of the following year.
- Quarterly Filing: For moderate income ranges, you file every three months, with returns due on April 20th (January 1 to March 31), July 20th (April 1 to June 30), October 20th (July 1 to September 30), and January 20th (October 1 to December 31) of the following year.
- Monthly Filing: For higher income ranges, you file and pay each month, with returns due on the 20th day of the following month (e.g., January’s return is due February 20th, February’s is due March 20th, etc.).
- Annual Reconciliation: All taxpayers must file Form G-49 (Annual Return & Reconciliation) by April 20th of the following year to reconcile their periodic filings with their annual tax liability.
GET Filing Frequency Table for Rental Income
Refer to the table below to find your specific filing frequency based on your monthly rental income range. The "Approx. Annual Rental Income Range" and "Why?" columns provide additional context to help you understand the calculations.
| Monthly Rental Income Range | Filing Frequency | Approx. Annual Rental Income Range | Why? |
|---|---|---|---|
| $0 - $3,537 | Semi-Annual | $0 - $42,445 | Estimated Annual GET 4.712% is less than $2,000 |
| $3,538 - $7,074 | Quarterly | $42,446 - $84,889 | Estimated Annual GET 4.712% is more than $2,000 but less than $4,000 |
| $7,075 and up | Monthly | $84,889 and up | Estimated Annual GET 4.712% is greater than $4,000 |
To help you visualize the filing schedule based on your determined frequency, here’s a grid with the due dates for each filing frequency:
| Filing Due Dates | Semi-Annual | Quarterly | Monthly |
|---|---|---|---|
| January | January 20th | January 20th | January 20th |
| February | - | - | February 20th |
| March | - | - | March 20th |
| April | - | April 20th | April 20th |
| May | - | - | May 20th |
| June | - | - | June 20th |
| July | July 20th | July 20th | July 20th |
| August | - | - | August 20th |
| September | - | - | September 20th |
| October | - | October 20th | October 20th |
| November | - | - | November 20th |
| December | - | - | December 20th |
Note: The January 20th due date for semi-annual and quarterly filings covers the prior year’s October 1 to December 31 period, while monthly filings cover the previous month. The annual Form G-49 is due by April 20th of the following year for all taxpayers.
How to Determine Your Filing Frequency
- Calculate Your Monthly Rental Income: Add up the total rent you collect each month from your rental properties.
- Match Your Income Range: Use the table above to identify which income range your monthly rental income falls into.
- Follow the Filing Schedule:
- If your monthly rental income is between $0 and $3,537, file semi-annually by July 20th and January 20th.
- If your monthly rental income is between $3,538 and $7,074, file quarterly by April 20th, July 20th, October 20th, and January 20th.
- If your monthly rental income is $7,075 or higher, file monthly by the 20th of the following month.
- Estimate Your Annual GET: Multiply your monthly rental income by 12 to get your annual income, then apply the 4.712% GET rate. Compare this to the thresholds ($2,000 and $4,000) to confirm your filing frequency aligns with the table.
- File Your Annual Reconciliation: Submit Form G-49 by April 20th of the following year, regardless of your periodic filing frequency.
Example Scenarios
- Low Income Example: If you earn $2,000 per month in rent, your annual income is $24,000, and the estimated GET (4.712%) is approximately $1,131—less than $2,000. You’d file semi-annually by July 20th and January 20th, with Form G-49 due April 20th of the next year.
- Mid-Range Example: If you earn $5,000 per month, your annual income is $60,000, and the estimated GET is about $2,827—between $2,000 and $4,000. You’d file quarterly by April 20th, July 20th, October 20th, and January 20th, with Form G-49 due April 20th of the next year.
- High Income Example: If you earn $10,000 per month, your annual income is $120,000, and the estimated GET is around $5,654—more than $4,000. You’d file monthly by the 20th of the following month, with Form G-49 due April 20th of the next year.
Additional Tips for Compliance
- Register with the Hawaii Department of Taxation: Ensure you have a GET license by completing Form BB-1 and paying the one-time $20 fee, available online at Hawaii Tax Online (hitax.hawaii.gov).
- Keep Accurate Records: Track your rental income monthly to stay on top of your tax obligations.
- Electronic Filing: If your annual GET liability exceeds $4,000, you must e-file periodic returns (e.g., Form G-45) via Hawaii Tax Online starting July 1, 2020, to avoid a 2% penalty.
- Penalties and Interest: Late filings incur a 5% penalty per month (up to 25%) and 2/3 of 1% interest per month on unpaid taxes.
- Consult a Tax Professional: If unsure, a local tax expert can provide personalized advice based on your specific situation.
How Hawaii Coastal Property Management Simplifies GET Filing for You—at No Extra Cost
At Hawaii Coastal Property Management, we understand that managing GET taxes can be a hassle for property owners, especially when you’re juggling multiple responsibilities. That’s why we take the burden off your shoulders by handling the entire GET filing and payment process for our clients—at no additional charge. Here’s how we make it easy:
- Income Tracking: We meticulously track your rental income on a monthly basis, ensuring accurate calculations to determine the correct filing frequency (e.g., monthly by the 20th, quarterly by April 20th, July 20th, October 20th, and January 20th, or semi-annually by July 20th and January 20th).
- Timely Filings: Whether your GET filing frequency is semi-annual, quarterly, or monthly, we handle all submissions (including Form G-45 and annual Form G-49 by April 20th) to the Hawaii Department of Taxation on your behalf, ensuring deadlines are never missed.
- Payment Processing: We calculate the 4.712% GET on your rental income and process the payments for you, so you don’t have to worry about errors or late fees.
- Compliance Assurance: Our team stays up-to-date on Hawaii’s tax laws, including e-filing requirements for liabilities over $4,000, so you can rest assured that your filings are always compliant.
- Transparent Reporting: We provide you with detailed reports of your rental income and GET payments, keeping you informed every step of the way.
By choosing Hawaii Coastal Property Management, you’re not just getting expert property management—you’re also getting a trusted partner who handles your GET tax obligations for free, saving you time and reducing stress. Let us manage the details so you can focus on growing your rental business. If you operate a vacation rental, learn about our short-term rental management. Contact us today to learn more about our comprehensive property management services!