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INSTRUCTIONS STATE OF HAWAII — DEPARTMENT OF TAXATION
FORM G-26
(REV. 2022)
INSTRUCTIONS FOR FORM G-26
USE TAX RETURN
(NOTE: ALL SECTION REFERENCES ARE TO THE HAWAII REVISED STATUTES UNLESS OTHERWISE NOTED)
GENERAL INSTRUCTIONS • Property, services, and/or contracting purchased a rate of 5% per month, or part of a month, up to a
from a seller who was subject to the GET upon a maximum of 25%.
The Use Tax sale or transfer of the property, services, and/or Failure to Pay Tax After Filing Timely Return.
The use tax is an excise tax imposed on property, contracting to the user. The penalty for failure to pay the tax after filing a
services, and/or contracting imported into the State timely return is 20% of the tax unpaid within 60 days
from an unlicensed out-of-state seller for use in the Who Must File
State. The use tax rate is 4% of the landed value of Every person who uses in this State property, of the prescribed due date.
the property and 4% of the value of services and/or services, and/or contracting which are imported into Interest. Interest at the rate of 2/3 of 1% per
contracting imported for use in a county that does not Hawaii, regardless if at the time of importation, the month, or part of a month, shall be assessed on the
have a surcharge. Where applicable a county sur- property, services, and/or contracting is owned by unpaid taxes and penalties beginning with the first
charge is added if the property, services, or contract- the importer, purchased from a seller that does not calendar day after the date prescribed for payment,
ing is imported for use in a county that has adopted have a GET license, or however acquired, must file a whether or not that first calendar day falls on Satur-
a surcharge. use tax return to report and pay use tax. day, Sunday, or legal holiday.
Examples of Property, Services, and What Forms to File Please check your return carefully. Additional penal-
ties may be assessed if you make an underpayment
Contracting You Must Report Form G-26. If you do not have a GET license, of tax due to negligence, intentional disregard of the
• Cars, trucks, boats, or office machines that are use Form G-26 to report and pay any use tax due or Department’s rules, or fraud.
imported for personal use. file and pay electronically at hitax.hawaii.gov.
Note: The importation of household goods, Forms G-45 and G-49. If you have a GET li- Where to File
personal effects, and private automobiles by cer- cense you cannot file Form G-26. If your Form G-45 File Form G-26 and your use tax payment with:
tain persons are exempt from the use tax under is not due yet, and you need to pay the use tax on an Hawaii Department of Taxation
section 238-1. Property acquired through trans- imported vehicle in order to register it, go to hitax.ha- P.O. Box 1425
actions, such as casual sales, which would not waii.gov to pay the tax. Otherwise, use Forms G-45 Honolulu, HI 96806-1425
be subject to the general excise tax (GET) if oc- and G-49 to report the property, services, and/or
curring in Hawaii are also exempt from the use contracting that is subject to use tax on your regular or you may file and pay electronically at hitax.
tax. (See Examples of Property, Services, and periodic (monthly, quarterly, or semiannual) return. hawaii.gov.
Contracting That You Do Not Report below.) All activities for the taxable year must be reported on Rounding to Whole Dollars in Columns a,
• All services performed outside this State where Form G-49 (annual return and reconciliation). b, c, e, f, and g
the customer in this State uses or consumes the Letter. Instead of filing Form G-26, an individual The Department is requiring taxpayers to round
service in this State. that does not have a GET license may send a letter off cents to the nearest whole dollar for all dollar en-
• Contracting performed outside the State import- to the Department of Taxation (Department) with a tries in columns a, b, c, e, f and g. To do so, drop
ed by a person who uses or consumes the value check or money order payable to the “Hawaii State amounts under 50 cents and increase amounts from
of the contracting in this State. Tax Collector” to report and pay any use tax due. The 50 to 99 cents to the next dollar. For example: $1.49
• Goods (e.g., clothing, electronics, or cameras), letter should contain the following information: becomes $1 and $2.50 becomes $3. If you have to
services, or intangibles (e.g., license to access) (1) Purchaser’s name and address; add two or more amounts to figure the amount to en-
purchased from an out-of-state seller via the in- (2) Purchaser’s social security number; ter in the column, include the cents when adding and
round off only the total. CAUTION: DO NOT enter
ternet where the customer in this State uses or (3) Month and year of importation into the State; the cents in columns a, b, c, e, f and g.
consumes the goods, services, or intangibles in
this State. (4) Taxation district into which purchaser imported Amended Return
tangible personal property, services, and/or
Examples of Property, Services, and contracting; If you are filing an amended Form G-26, darken
the oval at the top of Form G-26.
Contracting That You Do Not Report (5) Landed value of the property, services, and/or
No use tax is due and you do not need to file a contracting; Enter the correct amounts of values and exemptions
use tax return to report the following: (if applicable) which should have been reported on
(6) The amount of use tax due; and
• Household goods, personal effects, and private the original Form G-26. Follow steps 1 through 20.
automobiles if the person importing them into (7) If purchaser is importing a motor vehicle, in- Protective Claim
the State (A) acquired them outside Hawaii, (B) clude the vehicle’s make, model year, and
acquired them while the person was not a Ha- vehicle identification number (VIN) along with A protective refund claim is a claim filed to protect
waii resident, (C) acquired them for use outside the documentation (e.g., copies of the vehicle a taxpayer’s right to a potential refund based on a
Hawaii, and (D) made actual and substantial purchase invoice, freight bill, etc.) to support contingent event for a taxable period for which the
use of them outside Hawaii. An article that was the calculation of the landed value of the motor statute of limitations is about to expire. A protective
acquired less than three months before importa- vehicle. claim is usually based on contingencies such as
pending litigation or an ongoing federal income tax
tion into Hawaii is presumed to have been pur- Due Date audit or an audit in another state. For more informa-
chased for use within Hawaii, and, therefore, is Form G-26 with payment is due on or before the tion see Tax Facts 2021-2.
presumed not to qualify for this exclusion. 20th day of the calendar month after the property, Where to Get Forms, Instructions, and
• Property received solely as a gift. Property pur- services, and/or contracting were imported into the
chased at a bargain, even from a friend or rela- State. For example, a person who is subject to the Publications
tive, does not qualify for this exclusion. use tax for a motor vehicle imported into the State in Forms, publications, and other documents, such
• Articles that are examined and then returned, January 2023 must file Form G-26 with payment on as copies of Tax Information Releases and Admin-
such as goods that are returned after a trial pe- or before February 20, 2023. istrative Rules issued by the Department, are avail-
riod. Note: If any due date falls on a Saturday, Sun- able on the Department’s website at tax.hawaii.gov
• Newspapers, magazines, and other periodical day, or legal holiday, substitute the next regular work or you may contact a customer service representa-
publications purchased on a subscription plan day as the due date. tive at:
that qualify for the second class mail rate. If you file and/or pay late, you may have to pay penal- Voice: 808-587-4242
• Certain intangible property. This includes curren- ties and interest. See Penalties and Interest below. 1-800-222-3229 (Toll-Free)
cy, stocks, bonds, interest in land, or dividends as
defined by chapter 235. Penalties and Interest Telephone for the Hearing Impaired:
• Property, services, and/or contracting that have Late Filing of Return. The penalty for failure to 808-587-1418
been previously subject to the Hawaii use tax. file a return on time is assessed on the tax due at 1-800-887-8974 (Toll-Free)
Fax: 808-587-1488

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Instructions For Form G-26
Page 2 (REV. 2022)
Mail: Taxpayer Services Branch contracting when the services or contracting is re- a copy of the receipt or voucher indicating the pay-
P.O. Box 259 ceived by the importer or purchaser. ment of the sales or use tax paid to the other state.
Honolulu, HI 96809-0259 Property, services, and/or contracting are not subject A credit against the Hawaii use tax may be claimed
to the use tax if either the GET or use tax has been for the amount of sales or use taxes imposed by an-
STEP-BY-STEP INSTRUCTIONS previously paid on the property, services, and/or con- other state (or any subdivision thereof) and paid by
Step 1 — Enter your name, current mailing ad- tracting. the taxpayer on property, services, and/or contract-
dress, and social security number in the spaces pro- Step 6 — In column (b), if you have allowable ing before it is imported into Hawaii. (Section 238-
vided at the top of Form G-26. exemptions or deductions, enter the total amount 3(i).) The credit shall not include any other taxes paid
Step 2 — Enter the (two-digit) month and the here and explain each exemption and deduction. If to another state, such as taxes on manufacturing,
(two-digit) year (e.g., Month of January 2023 = 01- you do not have any exemptions or deductions, enter extraction, and the like, as well as license fees, or
23) that the property, services, and/or contracting “0.” See the Schedule of Use Tax Exemptions and transfer taxes. The amount of credit shall not exceed
was imported into the State in the space provided at Deductions below for more information. the amount of use tax imposed by Hawaii on such
property, services, and/or contracting.
the top of Form G-26. If you include the HRS section number of the exemp-
Step 3 — If you imported a motor vehicle into Ha- tions/deductions that you are claiming in columns (b) Step 15 — If you are filing an amended Form
waii, enter the motor vehicle’s identification number and (f), it will speed the processing of your return, G-26, enter on line (l) the amount of payment made
in the space provided at the top of Form G-26. If you and minimize the chances of us misunderstanding with the original Form G-26.
did not import a motor vehicle, leave this space blank what you are claiming. Step 16 — If you are filing an amended Form
and go to step 4. Step 7 — In column (c), subtract column (b) from G-26, if line (j) is less than the sum of lines (k) and
Step 4 — Check the appropriate box for the column (a) and enter the result here. (l), enter the result on line (m), otherwise go to step
17.
county in which you imported the property, services, Step 8 — In column (d), multiply column (c) by
and/or contracting. the tax rate of .04 and enter the result, including the Step 17 — On line (n), subtract line (k) and (l)
Oahu: Oahu Taxation District, also known cents, here. from line (j) and enter the result here.
as the City and County of Honolulu or Step 9 — In column (e), enter the landed value Step 18 — On line (o), if you file a tax return after
the island of Oahu. of the property, services, and/or contracting that was the due date and there is tax due on the return, then
Maui: Maui Taxation District also known as imported into a county that has adopted a surcharge. you must compute penalty and interest charges. Af-
ter computing the amounts, enter the results to the
the County of Maui or the islands of Step 10 — In column (f), if you have allowable right of “PENALTY $” and “INTEREST $” and enter
Maui, Lanai and Molokai. exemptions or deductions, enter the total amount the total of the two amounts on line (o).
Hawaii: Hawaii Taxation District, also known here and explain each exemption and deduction. If
as the County of Hawaii or the island you do not have any exemptions or deductions, enter If you need help computing the penalty and interest,
of Hawaii. “0.” See the Schedule of Use Tax Exemptions and please call a customer service representative at 808-
Deductions below for more information. 587-4242 or toll-free 1-800-222-3229; or leave these
Kauai: Kauai Taxation District, also known lines blank, and the Department will compute the
as the County of Kauai or the island If you include the HRS section number of the exemp- charges for you and send you a bill.
of Kauai including Niihau. tions/deductions that you are claiming in columns (b)
and (f), it will speed the processing of your return, Step 19 — On line (p), add line (n) and line (o),
Step 5 — In column (a), enter the landed value and minimize the chances of us misunderstanding and enter the result here.
of the property and the value of the services and/or what you are claiming. Attach your check or money order for this amount
contracting that was imported into the State. payable to “Hawaii State Tax Collector” in U.S. dol-
The landed value of imported property is the fair and Step 11 — In column (g), subtract column (f) from
column (e) and enter the result here. lars drawn on any U.S. bank. Write “Use Tax,” the
reasonable cash value of the property when it arrives month ending (MM/YY), and a daytime phone num-
in Hawaii. It generally includes the purchase or in- Step 12 — In column (i), multiply column (g) by ber on your check or money order. DO NOT SEND
voice price, shipping and handling fees, insurance column (h) and enter the result, including the cents, CASH. You may also file and pay electronically at
costs, customs duty, and other related costs. It does here. hitax.hawaii.gov.
not include sales tax paid in another state. Step 13 — On line (j), add column (d) and col- Step 20 — Sign your name and write your title,
If you imported a motor vehicle, use the worksheet umn (i), and enter the result here. the date, and a daytime contact phone number in the
on page 2 of Form G-26 to compute its landed value. Step 14 — On line (k), enter the allowable sales spaces provided on Form G-26.
The value of imported services or contracting is the or use tax paid to another state. Attach to Form G-26
fair and reasonable cash value of the services or

SCHEDULE OF USE TAX EXEMPTIONS AND DEDUCTIONS
(NOTE: ALL SECTION REFERENCES ARE TO THE HAWAII REVISED STATUTES)
Unless the following instructions tell you not to Diplomats and Consular Officials: The use of (2) Apportion the gross value of services or con-
report the exempt or deducted amounts, you must property, services, or contracting imported by foreign tracting sold to customers within the State by
report and explain the exemptions and deductions diplomats and consular officials holding cards issued persons engaged in business both within and
you are claiming on Form G-26. For circumstances by the U.S. Department of State granting them an without the State to determine the value of that
under which an exemption or a deduction is permit- exemption from state taxes are exempt. Report and portion of the services or contracting that is
ted or allowed, refer to the following sections: explain these amounts. (Section 238-1.) The tax subject to the general excise tax for the pur-
Casual Purchases: A sale of tangible personal exemption, however, is not applicable to taxes im- poses of section 237-21.
property by someone not in the business of selling posed on telecommunication services, other utilities, The Director will use the authority to exempt, ex-
the property is called a casual sale. A casual sale or gasoline purchases. For more information, see clude, or apportion the value of imported property,
means an occasional, isolated, irregular, infrequent, Tax Facts 2016-1. services, or contracting when an exemption, exclu-
or incidental sale or transaction involving tangible Director of Taxation’s Authority to Exempt, sion, or apportionment of gross receipts would be al-
personal property that is not ordinarily sold in the Exclude or Apportion the Use Tax: Imports of lowed under the General Excise Tax Law in the case
usual course of a trade or business. Because gross property, services, or contracting to the extent that of a similar local transaction. (Section 238-3(a).)
income derived from a casual sale is excluded from the general excise tax would not have applied to a Drugs and Prosthetic Devices for Personal
gross income subject to the general excise tax, the similarly-situated taxpayer engaged in a local trans- Use: If you are an individual who bought drugs or
landed value of tangible personal property acquired action. The Director of Taxation (Director) has the prosthetic devices from a hospital, infirmary, medical
in a casual sale also is not subject to the use tax. For authority to: clinic, health care facility, pharmacy, or a practitioner
example, if you purchase a used car from an indi- (1) Exempt or exclude from the use tax, property, licensed to administer the drug to an individual, the
vidual selling his or her personal car and import that services, or contracting, or the use of property, landed value of the drugs or prosthetic devices is ex-
car into Hawaii, report the landed value of the car, but services, or contracting exempted from the empt from use tax. Do not report these amounts.
claim this exemption. (Section 238-1.) general excise tax; or (Section 238-1.)

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