State of the state: Hawaii short-term rental laws
- Mar 4, 2025 | Jennifer Sokolowsky
In this series of blog posts, we offer an overview of the short-term rental (STR) lodging tax obligations for certain states, along with the latest rules on STR operations.
Hawaii offers a dream vacation spot with its famed beaches, warm weather, and laid-back lifestyle. STRs have become a popular option for travelers — so popular that local governments have been active in recent years creating more regulations for the industry. While most STR taxes are administered by the state government, local governments may each have their own lodging taxes and operational rules for vacation rental hosts to follow.
Short-term rental lodging taxes
In Hawaii, lodging taxes operate a bit differently than in most other states. STR income in Hawaii is subject to state transient accommodations tax (TAT) and general excise tax (GET), which are levied on gross rental proceeds from transient accommodations. In some counties, vacation rental proceeds are also subject to a state GET surcharge.
Hawaii counties may also levy their own transient accommodations tax (TAT) surcharge in addition to the state’s TAT. Hawaii, Honolulu, Kauai, and Maui counties have all established TAT surcharges since the law allowing them to do so was passed in 2021.
STR business owners may pass GET and TAT on to their guests. For tax purposes, STRs in Hawaii are defined as stays of less than 180 consecutive days.
Tax registration and filing
Before hosts can begin collecting taxes on STRs in Hawaii, they’re legally required to register with the Hawaii Department of Taxation for GET and TAT licenses/Tax ID numbers.
For state-administered TAT and GET, as well as county GET surcharge taxes, operators must file lodging tax returns with the state and pay at the time of filing. For county TAT surcharge taxes, hosts file returns with the state, but pay the taxes to county tax authorities.
Tax collection by STR marketplaces
While STR marketplaces such as Airbnb and Vrbo collect taxes on behalf of their hosts in many states, they’re not allowed to do so in Hawaii. If taxes aren’t being collected for operators, they’re responsible for collecting and remitting them to state and local tax authorities.
Local short-term rental laws
Amid concerns about overtourism and a lack of affordable housing for locals, local Hawaii governments have put STRs in the regulatory spotlight in recent years. In May of 2024, the state of Hawaii passed a law giving counties more powers to regulate STRs, including phasing them out altogether. None of the counties have yet taken this step, but each has existing STR regulations:
In October 2024, a Hawaii County ordinance banning STRs on agricultural land was upheld by the state Supreme Court after years in the courts. The Hawaii Supreme Court was unanimous in its ruling that Hawaii law does not permit farm dwellings to be used as STRs.
Also in 2024, The county also raised property taxes for certain STRs. STR owners who don’t live in their properties are charged $9 per $1,000 of value up to $800,000 and $11.50 for anything above that. The previous rate was $4 per $1,000 of assessed value up to $1 million. Hotels pay $13.90 per $1,000 of assessed value.
Get help with Hawaii vacation rental taxes
Avalara MyLodgeTax can help vacation rental hosts automate and simplify lodging tax compliance on the local and state level, including tax registration and filing. For more on vacation rental lodging taxes in Hawaii, see our state Vacation Rental Tax Guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.
