Updated on July 1, 2025

Key Points, Updated as of July 1st, 2025A high-resolution 3D topographic map of the Hawaiian Islands viewed from a slight overhead angle. Each island is rendered with realistic elevation shading—lush greens at lower elevations transitioning to earthy browns at peaks. The surrounding Pacific Ocean is depicted in gradient blues indicating depth. In the lower left foreground, bold white three-dimensional text reads “Hawaii Cannabis Tax Guide.”

  • Hawaii’s legal cannabis market remains medical‑only.

  • Medical cannabis sales are subject to the 4 % General Excise Tax (GET) on gross receipts, plus a 0.5 % county surcharge in all four counties (Honolulu, Maui, Kauai, Hawaii..

  • No separate excise tax; GET covers all sales.

  • Hawaii has decoupled IRC § 280E at the state level for medical cannabis, letting businesses deduct ordinary expenses on their state income tax returns.

  • Timely filings are mandatory; late or missing returns can result in penalties or license actions.

Understanding Hawaii’s Cannabis Tax Structure

1. 280E Decoupling & Benefits

  • Act 230, SLH 2016 decoupled IRC § 280E for medical cannabis businesses, allowing deduction of ordinary business expenses (rent, payroll, marketing) rather than limiting deductions to cost of goods sold.

  • Benefits:

    1. Lower taxable income at the state level.

    2. Improved cash flow, enabling reinvestment in operations.

    3. Competitive parity with other industries.

    4. Easier access to financing, as lenders see stronger margins.

2. General Excise Tax (GET)

  • State GET rate: 4 % on all medical cannabis sales.

  • County surcharges (max 0.5 %): Honolulu, Maui, Kauai, Hawaii Counties — bringing the maximum pass‑on rate to 4.7120 % in each county.

  • Who Pays: Licensed medical cannabis dispensaries (plant‑touching businesses) collect and remit GET.

  • Medical‑Only: No distinction — GET applies equally to all qualifying patient sales.

Sales/Gross Receipts Tax: Local Impact

Location Total GET + Surcharge (%)
City & County of Honolulu 4.7120 %
Maui County 4.7120 %
Kauai County 4.7120 %
County of Hawaii 4.7120 %

Calculation: GET is computed on the total gross receipts from the sale of medical cannabis products, including any surcharges.

Medical Cannabis: Tax Exemptions & Requirements

  • Excise Tax: No exemption — GET applies to all medical cannabis sales.

  • Sales/GRT: No special deductions — GET is charged fully.

  • Documentation: Maintain detailed sales records; allocate receipts by county for surcharge reporting.

Filing and Payment Deadlines

Tax Type Filing Frequency Form Due Date
General Excise Tax (GET + Surcharge) Monthly (G‑45) G‑45 20th of the month following the reporting period
Quarterly Summary Quarterly (G‑49) G‑49 20th of the month following quarter (Apr, Jul, Oct, Jan)
Multi‑County Allocation Quarterly (G‑75) attach to G‑45/G‑49 G‑75 Same as above
State Corporate Income Tax Annual N‑11 April 20 (following fiscal year end)

Penalties and Compliance Risks

  • Late Filing: Penalty of 2 % of tax due or $10, whichever is greater, plus interest at 0.5 % per month.

  • Noncompliance: May trigger DOH registry audit, fines, or suspension of dispensary licenses.

  • Audit Risk: High — state conducts frequent GET audits on medical cannabis businesses.

How to Calculate Your Total Cannabis Tax Obligation

  1. Determine County: Identify county surcharge rate (max 0.5 %).

  2. Compute GET: 4 % × gross cannabis receipts.

  3. Add Surcharge: 0.5 % × gross receipts.

  4. Total Tax: Sum GET + surcharge.

  5. Remit: File and pay via Form G‑45 by the 20th of the next month.

Key State Cannabis Trade Associations to Be a Part Of

Government Contact List

Department of Health, Medical Cannabis Registry Program

  • Mailing Address:
    Medical Cannabis Program,
    Main Office: Kinau Hale
    1250 Punchbowl Street
    Honolulu, Hawaii 96813

  • Phone: (808) 586-4400

  • Email: medicalcannabis@doh.hawaii.gov

Hawaii Department of Taxation – Contact Directory

  • Mailing (GET): P.O. Box 1425, Honolulu, HI 96806‑1425

  • Street Address: Princess Ruth Keelikolani Bldg, 830 Punchbowl St, Honolulu, HI 96813‑5094

  • Phone: (808) 587‑4242

  • Taxpayer Services: Taxpayer.Services@hawaii.gov

Alaska Cannabis Taxes Financial Calendar

Tax Type Rate/Details Applies To Filing Frequency Due Date
Cannabis GET + Surcharge 4 % + 0.5 % surcharge Dispensaries (plant‑touch) Monthly (G‑45) 20th of next month
Sales/GRT Tax Same as GET Dispensaries Monthly (G‑45) 20th of next month
State Income Tax Standard rates; 280E decoupled All cannabis entities Annual April 20
Medical Exemption None N/A N/A N/A

Calendar current as of July 2025. For informational purposes only. Consult a professional before making business, taxation, or compliance decisions.