Hawaii auto loan calculator

What a financed car actually costs out the door in Hawaii — the sales tax this state really charges, whether it credits your trade-in, and what the payment does to what you can borrow for a house.

Hawaii taxes you on the full price, trade-in or not

In most states a trade-in reduces the amount you pay sales tax on. In Hawaii it does not — tax is charged on the full negotiated price even when you hand over another car. Because the tax is normally rolled into the loan, you also pay interest on it for the life of the loan. The calculator shows what that rule costs you as its own line.

Local tax in Hawaii

Hawaii has no conventional sales tax. The General Excise Tax is a privilege tax on the BUSINESS's gross income rather than a tax on the customer — DOTAX: 'the GET is a tax on the business for the privilege of doing business in Hawaii, whereas a sales tax is a tax on the customer that is collected by the business.' The retail rate is 4.0%. All four counties now add a 0.5% surcharge, so 4.5% is effective statewide: Honolulu (2007), Kauai (2019), Hawaii County (2020), Maui (2024). SCHEDULED CHANGE: every county surcharge is set to expire 2030-12-31. A business may visibly pass the GET on but is not required to, and the pass-on is capped at 4.7120% — above 4.5% because the passed-on amount is itself part of the dealer's taxable gross income. A dealer that does not pass it on 'cannot say that there is "no tax"' (HRS 237-49).

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