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Hawaii (HI) does not impose a traditional sales tax. Instead, the state applies a General Excise Tax (GET) on business activities, including the sale of goods such as precious metals. Although the tax is legally imposed on the seller rather than the buyer, it is commonly reflected in the final purchase price of gold, silver, platinum, and palladium products.
Because the GET applies broadly to commercial transactions, most precious metals purchases in Hawaii effectively include this tax component. Federal taxation rules also apply when precious metals are sold at a profit, and Hawaii taxes capital gains as part of state income tax.
Precious metals such as gold and silver are classified as collectibles under U.S. federal tax law. Profits realized when selling investment metals may therefore be subject to federal capital gains tax, with a maximum rate of 28%, depending on income level and holding period.
Capital gains tax generally applies when metals are sold for fiat currency or exchanged for goods and services. No tax is due simply for purchasing or holding bullion.
Hawaii taxes capital gains at the state level, but distinguishes between short-term and long-term gains. Long-term capital gains — on assets held more than one year — are taxed at a maximum rate of 7.25%. Short-term capital gains are taxed as ordinary income, with Hawaii's progressive income tax rates ranging from 1.4% to 11% in 2025. Investors holding precious metals for more than one year before selling will therefore benefit from the lower 7.25% maximum state rate rather than the full ordinary income rate.
Hawaii does not apply a traditional retail sales tax but instead levies a General Excise Tax (GET) on businesses engaged in commercial activities. There is no GET exemption for precious metals of any kind in Hawaii — investment-grade bullion, coins, bars, and all other precious metal products are subject to the GET.
The GET rate is 4% statewide. An additional county surcharge of 0.5% applies in certain counties, including Honolulu (Oahu) and Maui County, bringing the effective rate to 4.5% in those areas. Other counties, including Hawaii County and Kauai County, also apply surcharges — investors should verify the applicable rate based on the delivery location.
Although the GET is legally imposed on the seller, a seller may choose to visibly pass on the GET and any applicable county surcharge to its customers, but is not required to do so. In practice, most dealers incorporate the GET into their pricing, effectively increasing the purchase cost for the buyer.
Jewelry, collectible coins, and all other precious metal products are also subject to GET as part of normal business transactions.
Hawaii is generally considered one of the least tax-efficient states for precious metals investors. It is one of only a handful of states that still imposes a tax on precious metals purchases, with no exemption available for investment-grade bullion of any kind.
In addition, capital gains realized when selling precious metals are subject to both federal taxation and Hawaii state income tax. Long-term gains face a maximum state rate of 7.25%, while short-term gains may be taxed at up to 11% under Hawaii's progressive income tax system.
Multiple legislative efforts have been introduced to remove the GET from precious metals purchases, but none had been successfully enacted as of the time of writing. Investors should monitor legislative developments and factor the GET into the total cost of acquiring physical precious metals in Hawaii.
Hawaii, United States residents are solely responsible for verifying applicable tax laws before purchasing or selling precious metals. GoldBroker is not liable for any tax obligations arising from transactions.