GET, TAT & OTAT in Hawaii – The Easiest Way To File & Pay
— Regardless of where you live, if you collect income from rental properties located in the State of Hawaii you need to file and pay local state and county taxes on the rental income.
There are two types of taxes on rental income that go to the State of Hawaii:
1) GET – General Excise Tax is due on all rental income (plus cleaning fees collected), regardless of the length of the rental term. On Oahu, the GET tax rate is 4.5%, and must be calculated on the “GE Taxable Income”
2) TAT – Transient Accommodation Tax is due on all rental income (plus cleaning fees collected) from rental terms less than 180 days per tenant. 10.25% TAT must be calculated on the “TA Taxable Income.”
Besides these two State of Hawaii taxes, each county requires their own respective TAT – Transient Accommodation Tax. For the City & County of Honolulu (the island of Oahu), effective 12.14.2021, that new tax is…
3) OTAT – Oahu Transient Accommodation Tax is due on all rental income (plus cleaning fees collected) from rental terms less than 180 days per tenant. 3% OTAT must be calculated on the “TA Taxable Income.”
See related article: Revised GET Tax Rates By County & Updated TAT Requirements
How Often And When Do I File And Pay:
All three taxes, GET (form G-45), TAT (form TA-1), and OTAT (City & County form TA-1) are due by the 20th of the month following the end of filing period.
You will also need to file the Annual Return & Reconciliation for GET (form G-49), TAT (form T-2), and OTAT (City & County form T-2) by April 20th of the following year.
Filing frequency depends on how much tax you expect to be paying for the full year:
–> Filing frequency for the new OTAT should match whatever your TAT filing frequency is.
How To Calculate The GET, TAT & OTAT On Hawaii Rental Income
- GET is 4.5% (Oahu) based on the “GE Taxable Income.”
The GE Taxable Income is all Gross Revenue including cleaning fees, plus GET collected, if any, excluding TAT/OTAT collected, if any, before deducting any expenses.
– Note: Although the GET rate is 4.5%, you may collect from your tenant 4.714%. That’s because any GET you collect is also taxable at 4.5%. Collecting 4.714% covers the tax on the tax! <–That’s not a typo.
- TAT is 10.25% based on the “TA Taxable Income.”
The TA Taxable Income is all Gross Revenue from transient accommodation rental income (any rental terms less than 180 days/tenant), including cleaning fees, excluding GET, TAT & OTAT collected, if any, before deducting any expenses.
- OTAT is 3% and it is also based on the “TA Taxable Income,” same as the TAT.
Two Examples on how to calculate the proper tax:
#1) – Collecting the GET, TAT & OTAT separately from the tenant:
- Base rent from Transient Accommodation Rentals: $10,000. – Collected separately: $650 cleaning fee, $501.83 GET, $10,91.63 TAT, and $319.50 OTAT.
- Base rent from Other Rentals: $10,000. – Collected separately: $471.20 GET
#2) Collecting a flat rent without separately collecting GET, TAT & OTAT:
- Base rent from Transient Accommodation Rentals: $11,912.95. – Collected separately: $650 clean fee.
- Base rent from Other Rentals: $10,471.20. – Nothing else collected.
–> Notice how both examples above show the same total gross revenue collected. However, #1) sample calculation results in a lower tax burden because the tax (GET, TAT & OTAT) was collected separately as a pass-through tax.
If you do not collect GET, TAT & OTAT separately as a pass-through tax, then you must calculate and pay the tax on the total gross revenue collected.
The Easiest Way To File & Pay In Less Than 5 Minutes:
GET and TAT goes to the State of Hawaii. Their payment portal site is called Hawaii Tax Online: https://hitax.hawaii.gov
Our short tutorials walk you through each step how to pay online in less than 5 minutes without writing checks, licking stamps or envelopes.
Part 1: GET
• If you are just getting started, first register your business and sign up for your GET license.
• Set up your online account.
• File and pay your GE tax in less than 5 minutes.
Part 2: TAT
• File and pay your TA tax in less than 5 minutes.
Part 3: OTAT
OTAT goes to the City & County of Honolulu (island of Oahu): www.honolulu.gov/otatpay
• Set up your online account.
• File and pay your OTA tax in less than 5 minutes.
Both, the Hawaii State Department of Taxation and the City & County of Honolulu made filing and paying simple with easy online access. There really is no excuse not to file and pay. Fines are stiff and there is no statute of limitation if you ever get audited. Play by the rules, file and pay on time and mitigate financial nightmares.
Disclaimer: We posted this article with tutorials as a free service to help you efficiently file and pay online GET, TAT & OTAT on your Hawaii rental income. – We are not tax professionals or CPAs. Always check with your favorite qualified tax professional or contact the Hawaii State Department of Taxation at 808-587-4242.
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