Aircraft tax · United States

Hawaii aircraft sales and use tax

Hawaii has no sales tax but taxes almost every business receipt with its 4 percent general excise tax, plus a county surcharge of up to half a percent, so aircraft sales, rentals, flight lessons and repairs are all taxed. Aircraft at state airports pay a $10 yearly registration fee.

Every answer below quotes the state's own source. Last checked October 18, 2026. Estimate the tax on your aircraft

Do you pay sales tax on an aircraft bought in Hawaii?

Taxed. Hawaii's general excise tax of four percent applies to the seller's gross proceeds from selling an aircraft, and counties may add a surcharge of up to one-half percent. The tax is on the seller, who usually passes it on.

Upon every person engaging or continuing in the business of selling any tangible personal property whatsoever, there is likewise hereby levied, and shall be assessed and collected, a tax equivalent to four per cent of the gross proceeds of sales of the business;
Hawaii Revised Statutes, HRS 237-13(2)(A) · checked October 18, 2026
No county shall set the surcharge on state tax at a rate greater than one-half per cent of all gross proceeds and gross income taxable under this chapter.
Hawaii Revised Statutes, HRS 237-8.6(a) · checked October 18, 2026

Do you owe use tax on an aircraft bought outside Hawaii?

Depends. Use tax applies to an aircraft imported into Hawaii or bought from an unlicensed seller, at four percent of its value for an owner using it, unless the acquisition was already taxed under the general excise tax.

There is hereby levied an excise tax on the use in this State of tangible personal property which is imported by a taxpayer in this State whether owned, purchased from an unlicensed seller, or however acquired for use in this State.
Hawaii Revised Statutes, HRS 238-2 · checked October 18, 2026
In all other cases, four per cent of the value of the property.
Hawaii Revised Statutes, HRS 238-2(3) · checked October 18, 2026
The tax imposed by this chapter shall not apply to any use or consumption of aircraft and vessels, the transfer of which aircraft or vessel to, or the acquisition of which by, the person so using or consuming the same, or the rental for the use of the aircraft or vessel, has actually been or actually is taxed under chapter 237.
Hawaii Revised Statutes, HRS 238-3(f) · checked October 18, 2026

What aircraft sales tax exemptions does Hawaii have?

Depends. Rent from leasing aircraft or engines to lessees who use them for interstate air transportation of passengers and goods is exempt from the general excise tax, and so is leasing for commercial transportation under the use tax. No general fly-away or nonresident exemption for aircraft was found.

Amounts received as rent for the rental or leasing of aircraft or aircraft engines used by the lessees or renters for interstate air transportation of passengers and goods.
Hawaii Revised Statutes, HRS 237-24.3(11) · checked October 18, 2026
The leasing or renting of any aircraft or the keeping of any aircraft solely for leasing or renting to lessees or renters using the aircraft for commercial transportation of passengers and goods or the acquisition or importation of any such aircraft or aircraft engines by any lessee or renter engaged in interstate air transportation.
Hawaii Revised Statutes, HRS 238-1, definition of "use" (exclusions), (6) · checked October 18, 2026

Are aircraft rentals taxed in Hawaii?

Taxed. Renting out an aircraft is a business activity taxed under the general excise tax at four percent of the rental income, unless the renter uses it for interstate air transportation.

Upon every person engaging or continuing within the State in any business, trade, activity, occupation, or calling not included in the preceding paragraphs or any other provisions of this chapter, there is likewise hereby levied and shall be assessed and collected, a tax equal to four per cent of the gross income thereof.
Hawaii Revised Statutes, HRS 237-13(9) · checked October 18, 2026
No county shall set the surcharge on state tax at a rate greater than one-half per cent of all gross proceeds and gross income taxable under this chapter.
Hawaii Revised Statutes, HRS 237-8.6(a) · checked October 18, 2026

Is flight instruction taxed in Hawaii?

Taxed. Flight instruction is a service business, and Hawaii's general excise tax applies to service income at four percent, plus any county surcharge.

Upon every person engaging or continuing within the State in any service business or calling including professional services not otherwise specifically taxed under this chapter, there is likewise hereby levied and shall be assessed and collected a tax equal to four per cent of the gross income of the business
Hawaii Revised Statutes, HRS 237-13(6)(A) · checked October 18, 2026
No county shall set the surcharge on state tax at a rate greater than one-half per cent of all gross proceeds and gross income taxable under this chapter.
Hawaii Revised Statutes, HRS 237-8.6(a) · checked October 18, 2026

Are aircraft parts and maintenance labor taxed in Hawaii?

Taxed. Repair and maintenance income is taxed under the general excise tax at four percent. The exemption for aircraft service and maintenance covers only scheduled commercial aircraft with two or more jet engines, serviced in a facility of at least thirty thousand square feet.

Upon every person engaging or continuing within the State in any service business or calling including professional services not otherwise specifically taxed under this chapter, there is likewise hereby levied and shall be assessed and collected a tax equal to four per cent of the gross income of the business
Hawaii Revised Statutes, HRS 237-13(6)(A) · checked October 18, 2026
"Aircraft" means any craft or artificial contrivance of whatever description engaged in intrastate, interstate, or international scheduled commercial use as defined in chapter 263, that operates with two or more jet engines.
Hawaii Revised Statutes, HRS 237-24.9(b) · checked October 18, 2026
"Aircraft service and maintenance facility" means a facility for aircraft service and maintenance that is not less than thirty thousand square feet in area
Hawaii Revised Statutes, HRS 237-24.9(b) · checked October 18, 2026

Does Hawaii register or tax aircraft every year?

Taxed. Aircraft operated at a state-owned airport must be registered with the Department of Transportation, for a $10 yearly fee. Aircraft operating mainly in interstate commerce, in transit, or owned by the United States are exempt.

The department shall assess and collect an annual registration fee of $10 from each operator of aircraft required to be registered under section 261-15.5.
Hawaii Revised Statutes, HRS 261-15.6 · checked October 18, 2026
Unless an aircraft is exempted by this section, no person shall operate or cause or authorize to be operated any aircraft at an airport owned or controlled by the department, unless the aircraft has a certificate of registration issued in accordance with rules adopted by the department.
Hawaii Revised Statutes, HRS 261-15.5 · checked October 18, 2026

AerScheduler can add sales tax, at the rates you set, to the invoices you raise for parts, labor and other charges, taxing only the lines your state taxes. How it works