Hawaii Tax Department Announces New General Excise Tax Exemption for Healthcare Providers

The Hawaii Department of Taxation has issued a tax information release announcing a new general excise tax exemption for healthcare providers receiving payments under Medicare, Medicaid, or TRICARE starting Jan. 1, 2026. The exemption applies to hospitals, clinics, pharmacies, licensed physicians, dentists, nurses, and pharmacists for amounts received for healthcare goods and services covered by those programs, including patient cost-sharing payments. Eligible taxpayers must report gross receipts and claim the exemption on tax forms. [Haw. Dep’t of Tax’n, Tax Information Release No. 2025-02, 08/01/25]

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