Hawaii Vacation Rental Regulations

As a vacation rental home owner in Hawaii, there are a number of rules and regulations you must follow in order to rent it out short term.

Provide Local Contact Information

Vacation rental home owners in Hawaii must have a local contact residing on the same island as their vacation home. Owners must report certain information to the Hawaii Department of Taxation within 60 days of any changes. If you rent out lodging for 179 days or less at a time, you must report the following:

your name,
mailing address,
phone number and other contact info,
your TA tax license number,
the website address of all sites advertising your property
name of a local contact residing on the same island as the property
local contact’s mailing address, phone number and other relevant contact info.

Apply for the General Excise Tax (GET) and the Transient Accommodations Tax (TAT) Licenses

To learn more about the Transient Accommodations Tax: http://files.hawaii.gov/tax/legal/brochures/tat_brochure.pdf

To register for the GET and the TAT:

go to any district tax office
online at hitax.hawaii.gov
or through the Hawaii Business Express website at hbe.ehawaii.gov
You may also file your application with one of the Department of Commerce and Consumer Affairs’ Business Action Centers.

Registration fees are $20 for the GET and $5 for the TAT for 5 or fewer accommodation units or $15 for 6 or more units. Separate ID numbers are issued for the GET and TAT licenses.

As of Jan 1, 2018, the transient accommodations tax (TAT) rate in Hawaii for short-term rentals is 10.25%. This tax rate is scheduled to stay in effect until December 31, 2030 and is used to help fund Honolulu’s rapid transit system.

Big Island/Maui/Kauai taxes for vacation rental accommodations:

4.7% General Excise Tax
10.25% Transient Accommodations Tax (TAT)
Total: 14.96% Lodging Taxes collected

Oahu taxes for vacation rental accommodations:

4.17% General Excise Tax
10.25% Transient Accommodations Tax (TAT)
Total: 14.42% Lodging Taxes collected

Vacation rental homes must display their TAT number on websites where they advertise. Further details on advertising and display requirements for operators of transient accommodations can be found here: http://files.hawaii.gov/tax/legal/taxfacts/tf2017-2.pdf

Any questions regarding the Transient Accommodations Tax should be directed to the Hawaii State Department of Taxation via email at taxpayer.services@hawaii.gov or by calling 808-587-4242.