Mandatory Electronic Payment (EFT)

Electronic Funds Transfer (EFT) is a system of transferring money from one bank account directly to another without any paper money changing hands (e.g. checks, cash).

The $100,000 tax threshold applies to the following tax types:
  1. Net income, including estimated tax
  2. General Excise and Use
  3. Transient Accommodations
  4. Public Service Company
  5. Franchise
  6. Fuel
  7. Liquor
  8. Cigarette and Tobacco
  9. Rental and Tour Vehicle Surcharge
The tax threshold for withholding is $40,000.

Taxpayers who need to make EFT payments are sent a letter notification from DOTAX that they are required to participate in the mandatory EFT Program.

You can use Hawaii Tax Online to make a payment (1) from your checking or saving account (free) or (2) using a credit or debit card payment (fees apply). You may also pay by Automated Clearing House (ACH) credit by following these instructions to work with your bank.

E-payments can be set up on Hawaii Tax Online.

Absolutely! All taxpayers are encouraged to e-file or e-pay to ensure that transactions are posted quickly and accurately.

Yes. You can request a waiver from the e-filing requirement by completing and submitting Form L-110, the Electronic Filing or Payment Exemption Application, and providing an explanation of why you cannot meet this requirement. Your request is subject to approval.

No. Payments will be posted to your tax account the next business day. It may take two (2) to three (3) business banking days for a withdrawal to be debited from your bank account. The effective date of the payment is the date submitted.

Yes. All returns must be paid electronically, including partial payments [Tax Announcement No. 2018-03].

Yes. Once you have met the $100,000 tax threshold, EFT payments will be required for all future payments. Thus, a penalty will still apply unless you have an approved Form L-110, the Electronic Filing or Payment Exemption. Each year you drop below the tax liability you must submit Form L-110 to avoid the penalty.

DOTAX will send you a letter notifying you that a participation in the EFT Program is required and that all subsequent payments must be electronically paid through EFT or a 2% penalty will be imposed.

Yes. Once the threshold has been met and you are required to pay by EFT, all future payments, whether for current or past must be made electronically.

We encourage you to e-pay early to ensure that your payment can be processed. Availability of Hawaii Tax Online is monitored. If the Department schedules downtime for maintenance, advanced notification will be posted to Hawaii Tax Online. In the unlikely event that Hawaii Tax Online is unavailable on the payment due date, reasonable accommodations will be made to ensure taxpayers can e-pay without a late penalty.

You can make EFT payments without signing in to Hawaii Tax Online by clicking on “Make a Payment” under the Quick Links on the homepage.

A $25.00 non-waivable penalty will be imposed for payments that are dishonored for ANY reason. If the subsequent payment is after the due date, a failure to EFT penalty will be imposed [HRS 40-35.5.

Yes. You can post date an EFT payment on Hawaii Tax Online up to 120 days.

No. The EFT payment requirement only applies to return and tax payments.

Yes. EFT is the recommended method of payment for accuracy and timely posting. You can use Hawaii Tax Online to make a payment for a collection action (1) from your checking or saving account (free) or (2) using a credit or debit card payment (fees apply).

This penalty has two parts – e-filing and timeliness. If you paid by EFT late, the failure to EFT penalty will be assessed. If you did not pay by EFT late and were assessed the EFT penalty, this may have been an error. Please mail your billing statement to us with an explanation so that we can research and correct the error.

Telephone assistance is available during regular business hours, Monday through Friday, 7:45AM – 4:30PM (excluding holidays), by calling (808) 587-4242.