Hawaii Corporate Estimated Tax Payments

Whether you’re working in Hawaii or running a business there, you need to ensure you’re keeping up with your state and local tax obligations. In addition to federal taxes, you’ll also need to pay Hawaii withholding and unemployment insurance (UI) taxes. You can learn more about these taxes by visiting the DOT’s website or reviewing the state’s general withholding tax instructions.

C corporations and S corporations with taxable income are required to make estimated tax payments on the basis of their expected income taxes for the current fiscal year. The amount of each estimate tax payment is equal to the corporation’s tax liability minus any allowable tax credits.

In addition to corporate estimated tax payments, Hawaii imposes an excise tax on certain goods and services. Businesses can either collect the tax directly from customers or pass it on to customers as a sales tax. The excise tax rate is currently 4%. The state also imposes a hotel occupancy tax on guests staying in hotels and motels, but the tax rate is currently 7%.

How to Pay Hawaii Corporate Estimated Tax?

Hawaii requires taxpayers who have income not subject to withholding to make quarterly estimated tax payments if the total annual liability is $500 or more. Businesses can make these payments online using Form N-201V, Business Income Tax Payment Voucher, or by mail with the State Department of Taxation. In addition to the state estimated tax, businesses operating in Hawaii may also be required to pay a general excise tax (GET), local taxes, and unemployment insurance tax.

To file a business tax return, visit the State of Hawaii’s website to use its Hawaii Tax Online platform. The portal is free to use and offers a variety of filing and ACH debit payment options. If you need additional time to file your return, you can request a 6-month extension by submitting form N-201V along with your estimated tax payment.

If you own a pass-through entity, such as an S corporation or partnership, you must report your business income on your personal tax return. This income is taxable at rates from 1.4% to 11%, depending on your earned income. Additionally, you must register your business with the state’s Department of Labor and Industrial Relations online through Hawaii UI Express. You must then file wage reports and pay unemployment insurance tax by the end of each quarter using form UC-B6.