Selling Gold in Hawaii: Taxes, Dealer Rules and How to Prepare

Sales Tax in Hawaii: There Is None, but the GET Is Visible

Hawaii is one of the five U.S. states with no retail sales tax. In its place sits the General Excise Tax, a tax that behaves differently from a sales tax both on paper and on the receipt. According to the Hawaii Department of Taxation, “the tax is on the business and not on the customer,” but “a seller may choose to visibly pass on the GE and any applicable county surcharge” to the buyer. The customer-facing effect is a tax line that looks like a sales tax but is legally a cost of doing business for the dealer.

The statewide GET rate on retail sales of goods is 4 percent. Four counties layer a 0.5 percent surcharge on top: Honolulu (Oahu) since January 1, 2007 (currently extended through December 31, 2030), Kauai since January 1, 2019 (through December 31, 2030), Hawaii County since January 1, 2020 (through December 31, 2030, after a 0.25 percent intro rate in 2019), and Maui since January 1, 2024 (through December 31, 2030). In practice that means every square inch of Hawaii now carries a combined 4.5 percent GET on retail transactions. The maximum visible pass-through, after accounting for the tax-on-tax math that Hawaii expressly permits, is 4.7120 percent.

Who Actually Pays the GET When You Sell Gold

When you walk into a Honolulu, Hilo, Kahului, Lihue or Waipahu buyer and sell personal gold, you are not the taxable business under the GET. The buyer is. Hawaii is not collecting a tax on your side of the counter. If a Hawaii dealer tries to deduct a GET amount from the offer they make you to buy your gold, that is a mislabeling of their own cost of doing business, not a lawful adjustment to a seller.

Where the GET does appear in your sale is at a slightly different angle: if the buyer resells your metal to another consumer in Hawaii, the buyer collects (or visibly passes on) up to 4.7120 percent on the resale ticket, and remits it to the Department of Taxation. That is the dealer’s problem on the resale leg, not yours when you sell. For a buyer-side breakdown of GET exposure on bullion deliveries into Hawaii, see our companion piece on sales tax on bullion in Hawaii.

Combined GET by County (as of 2024)

County surcharges above are confirmed by the Hawaii Department of Taxation county surcharge page. All four counties currently share the same 4.5 percent combined rate, which makes Hawaii effectively a single-rate state for retail GET purposes until the first surcharge sunsets after December 31, 2030.

Hawaii Income Tax on Gold Gains: Up to 11 Percent, or 7.25 Percent on Long-Term Gain

Hawaii taxes individual income under HRS Chapter 235 on a 12-step progressive schedule. Capital gain from the sale of physical precious metals flows into Hawaii adjusted gross income as ordinary income and is taxed at your applicable marginal bracket, unless the alternative tax on capital gains delivers a lower result (it usually does for larger long-term gains).

Current Resident Rate Schedule (Schedule I, Single and Married Filing Separately, 2024)

The brackets below are drawn from the 2024 Hawaii Form N-11 instructions published by the Hawaii Department of Taxation. Married-filing-jointly and head-of-household schedules widen the brackets but preserve the same top rate.

Married couples filing jointly (and qualifying surviving spouse filers) hit the 11 percent top bracket at taxable income over $400,000. Head-of-household filers hit the 11 percent top at over $300,000. For most sellers of personal metal holdings, the operative Hawaii marginal rate falls somewhere between 8.25 and 11 percent, applied on top of federal collectibles liability.

The 7.25 Percent Alternative Tax on Long-Term Capital Gain

Hawaii allows an alternative tax on long-term capital gains of 7.25 percent, computed on Schedule D of Form N-40 and brought into the N-11 flow when it produces a lower total tax than the regular bracket calculation. The alternative tax applies when net long-term capital gain exceeds net short-term capital loss and when taxable income (reduced by that net gain) exceeds a filing-status floor: $24,000 single or MFS, $36,000 head of household, $48,000 married filing jointly or qualifying surviving spouse. In plain terms: once your total taxable income climbs into the 8.25 percent bracket or higher, Hawaii lets you tax your long-term bullion gain at 7.25 percent rather than at your top marginal bracket, which usually saves money.

Short-term gain (held one year or less) gets no such break. Short-term gain is taxed at your ordinary Hawaii bracket, up to 11 percent, on top of the ordinary federal rate.

Federal Collectibles Capital Gains Rules (Apply First)

The IRS classifies physical gold, silver, platinum and palladium as collectibles under Internal Revenue Code section 408(m), and section 1(h)(4) caps the federal long-term capital gains rate on collectibles at 28 percent, higher than the 0, 15 or 20 percent rates that apply to most stock and bond gains. Short-term gain is taxed at your ordinary federal rate. Authoritative text: 26 U.S. Code 1(h), 26 U.S. Code 408(m) and IRS Topic 409. For a deeper walk-through of the ceiling, see our guide to the 28 percent collectibles rule.

Calculating Your Taxable Gain

Your taxable gain is computed once federally, then flows to your Hawaii return:

• Start with the sale price received from the Hawaii dealer.
• Subtract your cost basis: original purchase price plus documented acquisition costs (dealer premiums, shipping, insurance, assay fees).
• The remaining net gain is reported federally on Schedule D and Form 8949 under collectibles treatment, and flows to Hawaii Form N-11 (resident) or Form N-15 (nonresident).
• If the alternative tax on long-term capital gain lowers your Hawaii liability, elect it on Hawaii Schedule D.

Losses within the same category can generally offset gains before the rate applies. Keep purchase receipts, dealer invoices, shipping records and assay certificates for every bullion acquisition. To estimate what your current holdings are worth per weight and purity before you model tax, use the Goldiew gold value calculator, which pulls a live spot price.

A Worked Example (Illustrative Only)

The figures below are illustrative, assume a long-term federal holding treated under the collectibles rules, assume a Hawaii taxable income already in the 8.25 percent bracket before the gain, and assume the 7.25 percent alternative tax applies to the long-term gain. Your actual liability depends on total income, filing status, deductions and other factors. Consult a licensed Hawaii CPA before acting.

Without the alternative tax election, the same $5,000 gain taxed at a 9 percent regular Hawaii bracket would cost $450 of state tax instead of $362.50, and at the 11 percent top bracket $550. The election is where most of the Hawaii-specific planning value sits for larger sellers.

Hawaii Dealer Rules: HRS 445 and the HRS 486M Overlay

Hawaii regulates buyers of used precious metals through two layers of statute. The first is Hawaii Revised Statutes Chapter 445, which licenses pawnbrokers in Part V and secondhand dealers in Part VII (and separately licenses scrap dealers in Part X). The second is HRS Chapter 486M, which overlays record-keeping, record-retention, electronic submission and a minimum holding period on the same two license classes for transactions involving precious or semiprecious metals and gems.

If you are a private individual selling your own gold, these rules fall on the dealer, not on you. Knowing what a compliant Hawaii buyer must do helps you tell a legitimate operation from an unlicensed one.

Licensure Under HRS 445 Part VII

Under HRS 445-171, the state treasurer grants licenses “to suitable persons to be dealers and traders in secondhand articles” and may revoke them for cause. The annual license fee is a nominal $10, but the statute requires that every license designate the place where the business is carried on, continue for one year unless revoked, and that “every dealer shall keep a book in which shall be written a description of every article received, the name, residence, and a general description of the person from whom, and the time and hour when the article was received.” The book, the premises and the articles may be inspected at any time by the state treasurer, the chief of police, or an authorized representative. HRS 445-172 adds that willful violation is a petty misdemeanor. Pawnbrokers follow a parallel regime in Part V of the same chapter.

The HRS 486M Record-Keeping Overlay

HRS 486M-2 requires that for every transaction, the dealer or an agent “immediately upon receipt of any article” record, on an electronic or paper form authorized by the chief of police: the dealer’s name and address; the seller’s name, residence address, date of birth and age; date and time received; the seller’s signature; the seller’s Hawaii driver’s license number or other government-issued photo ID; a photograph of the seller; a complete description or photographs of the article, including serial numbers; a reasonable estimate of fineness and weights of precious or semiprecious metals and gems received; the price paid; and a signed copy of any pawn transaction agreement. In counties with a population of 500,000 or more (currently just Honolulu), completed forms must be submitted free of charge through a webpage, online service or online application established by the county police department. A grandfather clause carves out dealers who first obtained a pawnbroker or secondhand license on or before January 1, 2002 and have continuously operated at a physical address since.

The Critical Nuance: HRS 486M-1 Excludes Bullion

HRS 486M-1 defines “precious or semiprecious metal” to include gold, silver, platinum and alloys “without regard to their fineness,” but “excludes bullion and bullion type coins and bars.” That exclusion is the single most important nuance in the Hawaii framework for a seller holding sovereign coins or assayed bars. The HRS 486M record-keeping, photo and holding-period overlay applies principally to jewelry, karat gold, dental gold and generic scrap metal transactions. Sealed one-ounce American Gold Eagles, kilo bars and the common bullion rounds are outside the HRS 486M definition. HRS 445 Part V and Part VII licensure and the basic record-book obligation still apply, so your dealer is still regulated and still records the transaction. The 15 or 30 day HRS 486M-4 hold on the item itself (below) does not reach bullion.

In practice, Hawaii dealers that buy both jewelry and sealed bullion maintain two workflows: a full HRS 486M intake with photo, ID and police submission for jewelry and karat gold, and a lighter HRS 445 record-book entry for recognized bullion. If your lot is a mix of a wedding band, a scrap chain and three Gold Eagles, expect the jewelry side to run under HRS 486M and the Eagles to run under HRS 445 alone.

Fifteen or Thirty Day Holding Period on Jewelry and Karat Gold

HRS 486M-4 bars a Hawaii pawnbroker or secondhand dealer from altering, melting, defacing, breaking apart, disposing of or changing the character of a covered article for 15 calendar days in counties under 300,000 population, and 30 calendar days in counties of 300,000 or more (currently Honolulu, which crosses that threshold). The chief of police of each county may reduce the 30-day hold to 15 days where the dealer has computerized record-keeping and transmittal capabilities acceptable to the chief or an authorized representative. The hold applies to items covered by HRS 486M-1, which (as above) are jewelry, karat gold, dental gold and non-bullion precious metal articles. Bullion coins and bars sit outside this hold.

HRS 486M-5 authorizes the chief of police or an authorized representative to immediately inspect any required records and any articles described in those records that the police reasonably believe are stolen goods, during normal business hours or whenever the dealer or agents are present.

Prohibited Transactions and Payment Methods

Hawaii does not impose a general cash-payment ban on precious metal purchases under HRS 445 Part V or Part VII. Cash is permitted on gold and silver purchases at the counter. For your own protection, request a written receipt that mirrors the record-keeping entry, and consider a check or ACH on larger amounts for the paper trail at tax time. Dealers that cannot verify your identity, that pressure you to decline a written receipt, or that avoid the HRS 486M intake on jewelry are not operating within the Hawaii framework.

Step by Step: How to Prepare Before Selling Gold in Hawaii

A short preparation window before you walk into a dealer in Honolulu, Hilo, Kahului, Lihue, Waipahu, Kailua, Kaneohe, Pearl City, Mililani, Kapolei, Kona or any Hawaii community measurably improves what you take home.

1. Gather Your Cost Basis Documentation

Pull together original purchase invoices, dealer receipts, shipping and insurance records, and any assay certificates. The stronger your documentation, the lower your federal taxable gain and the lower the amount Hawaii taxes at your marginal bracket (or at the 7.25 percent alternative rate on long-term gain). If you inherited the metal, document its fair market value at the time of inheritance (stepped-up basis under federal rules; Hawaii follows).

2. Verify the Spot Price Internally First

Before approaching any Hawaii buyer, know the day’s spot price. The simplest way is the Goldiew gold value calculator, which pulls a live spot so you can estimate holdings by weight and purity. The spot number lets you judge whether a dealer’s offer is in line with current market conditions.

3. Weigh and Test Your Items at Home

A basic jewelry scale that reads in grams and troy ounces confirms weight. Purity markings (10K, 14K, 18K on jewelry; 0.999 or 0.9999 on bullion) indicate fineness. For items without clear markings, a reputable dealer offers an on-site acid test or XRF scan. Watch the test being performed; a dealer who refuses to let you observe is a red flag.

4. Get Multiple Offers

Dealer spreads vary across Hawaii, especially between Oahu’s larger shops and neighbor-island dealers. Two or three competing offers typically improve what you receive, especially on larger holdings. The simplest way to do this at scale is to post one free request on Goldiew’s Sell Gold platform, which routes to up to 15 verified buyers in sealed-offer form. See also why getting multiple offers matters.

5. Confirm the HRS 486M Workflow for Your Lot

Ask the dealer at the counter which items will run under HRS 486M (jewelry, karat gold, dental gold) and which under HRS 445 alone (sealed bullion coins and bars). Expect the first group to require a photograph of you, a Hawaii driver’s license or other government-issued photo ID, your date of birth and a full intake entry submitted electronically to the county police. Expect the second group to require only the HRS 445 record-book entry. Both groups are legitimate. A buyer that resists either workflow is non-compliant and worth avoiding.

What a Legitimate Hawaii Buyer Looks Like (and Red Flags)

A legitimate Hawaii precious metals buyer typically shares the following traits:

• A current HRS 445 Part V pawnbroker license or Part VII secondhand dealer license designating the physical premises.
• HRS 486M-compliant intake for jewelry, karat gold and dental gold: photo, government-issued ID, electronic submission to the county police in populations of 500,000 or more.
• A permanent Hawaii street-address location with regular hours, not a hotel-conference pop-up.
• A clear written offer tied to the current spot price and a transparent weighing and testing methodology.
• Willingness to let you observe weighing and testing in real time.
• A written receipt itemizing each piece purchased and the price paid, matching the record-book or HRS 486M entry.
• Awareness of the HRS 486M-1 bullion exclusion, with distinct workflows for jewelry versus sealed bullion.
• Verifiable community reviews on at least one independent platform.

Red flags that warrant walking away: pressure to decide on the spot, refusal to provide a written offer, refusal to show a current state license, dramatically below-spot offers framed as limited-time deals, and buyers operating from temporary venues. See the FINRA alert at finra.org. For a local starting point, see our Hawaii gold dealer directory, Hawaii coin dealer directory and Hawaii pawn shop directory.

Special Situation: Gold Held in a Self-Directed IRA

If your gold is held inside a properly structured self-directed IRA, selling it inside the IRA is not a taxable event. Taxes apply when you take distributions: traditional IRA distributions are taxed as ordinary federal income and as ordinary Hawaii income at your marginal bracket (up to 11 percent), while qualified Roth distributions are federally tax-free, and Hawaii conforms. The federal collectibles cap does not apply, because the distribution itself is ordinary income. The Hawaii 7.25 percent alternative tax on long-term capital gain also does not apply, because the income coming out of an IRA is characterized as ordinary. See IRS Publication 590-B for distribution mechanics.