Hawaii Short-Term Rental Tax Overview
Hawaii imposes state income tax at rates up to 11% on net rental income, combined with General Excise Tax (GET) + Transient Accommodations Tax (TAT) at 14.25-17.75%+ on gross rental receipts. 4.5% GET (4% state + 0.5% county surcharge) + 10.25% TAT, plus county surcharges. The total tax burden for Airbnb hosts in Hawaii varies by location, ranging from approximately 17.75% in Honolulu (Oahu) to 17.75% in Big Island (Hawaii County). Understanding the layered structure of federal, state, and local taxes is essential for compliance and accurate pricing.
This guide covers the 2026 tax year. Tax rates and rules change frequently — always verify current rates with the Hawaii Department of Taxation and consult a qualified tax professional for advice specific to your situation. Federal tax obligations (Schedule E, Form 1099-K, the 14-day rule) apply in addition to all state and local taxes described below. See IRS Publication 527 for federal rental income rules.
Income Tax on Rental Income
Rate: 11%
Graduated rates from 1.4% to 11% — one of the highest state income tax rates in the U.S.
- Net STR income (after expenses) reported on the Hawaii state income tax return
- Federal Schedule E (or Schedule C if substantial services provided) is required regardless of state tax
- The 14-day rule: if you rent your primary residence 14 days or fewer per year, federal rental income is tax-free (IRS Publication 527)
- Self-employment tax may apply if you provide hotel-like services (daily cleaning, meals, concierge)
General Excise Tax (GET) + Transient Accommodations Tax (TAT)
Rate: 14.25-17.75%+
4.5% GET (4% state + 0.5% county surcharge) + 10.25% TAT, plus county surcharges
What Airbnb Collects Automatically
- Transient Accommodations Tax (TAT) at 10.25%
- General Excise Tax (GET) at 4.5%
- County TAT surcharge (3%) where applicable
What Hosts Must Collect and Remit
- In most cases Airbnb now covers the primary tax obligations
- Verify county surcharges are being collected
Local Tax Rates by City in Hawaii
Combined estimated occupancy/lodging tax rates including state + local components (income tax not included):
| City / Area | Local Tax Rate | Combined Rate | Registration Required? |
|---|---|---|---|
| Honolulu (Oahu) | 3% county TAT surcharge | 17.75% | Yes — registration required |
| Maui | 3% county TAT surcharge | 17.75% | Yes — strict STR regulations |
| Kauai | 3% county TAT surcharge | 17.75% | Yes — limited STR permits |
| Big Island (Hawaii County) | 3% county TAT surcharge | 17.75% | Yes |
Deductions for Hawaii Airbnb Hosts
Hawaii conforms to the IRC for most purposes but has several important differences. Hawaii does NOT conform to bonus depreciation — hosts must use standard 27.5-year MACRS on their state return. Hawaii also has a unique treatment of the GET: the 4.5% GET is technically a tax on the business (not the customer), so hosts can either absorb it or pass it to guests. If passed to guests, the GET on the passed-through amount is also taxable (a "tax on tax" situation). At 11% top income tax rate, deductions are extremely valuable — every $1,000 in legitimate deductions saves up to $110 in state tax.
Common Deductible Expenses
- Depreciation — Building cost over 27.5 years (IRS Publication 946); often the largest single deduction
- Mortgage interest — Deductible in proportion to rental use percentage
- Property taxes — Proportional to rental use days vs. personal use days
- Insurance — STR-specific or landlord insurance premiums
- Cleaning and maintenance — All turnover cleaning fees, repairs, and upkeep
- Supplies — Linens, toiletries, coffee, kitchen supplies for guests
- Platform fees — Airbnb host service fees (typically 3%) are fully deductible
- Utilities — Electricity, internet, water, gas proportional to rental use
- Professional fees — CPA, tax preparer, attorney fees related to the rental business
Filing Requirements and Deadlines
Registration
Required: General Excise Tax License + Transient Accommodations Tax ID
Cost: $20 GET license
Register at: Hawaii Department of Taxation
Filing Schedule
Monthly, quarterly, or semi-annually for GET/TAT; annually for income tax
Key Resources
Common Hawaii Tax Mistakes for Airbnb Hosts
Mistake #1
Not understanding the GET "pyramiding" effect — when you pass GET to guests, you owe GET on the surcharge amount too, creating a slightly higher effective rate than the nominal 4.5%.
Mistake #2
Operating an STR on Maui without proper permits — Maui County has dramatically tightened STR regulations, phasing out many non-conforming vacation rentals with Bill 41 (2024). Fines for unpermitted operation can be $20,000+.
Mistake #3
Confusing TAT and GET — these are two separate taxes with different registration requirements, different filing forms, and different rates. Both apply to every STR booking in Hawaii.
Hawaii Short-Term Rental Regulations Beyond Tax
Hawaii has some of the most restrictive STR regulations in the U.S. Maui County passed Bill 41 in 2024, phasing out approximately 7,000 short-term rental permits for units outside hotel-zoned areas over a multi-year transition period. Honolulu requires STR registration and restricts non-hosted STRs in residential zones. Kauai limits STR permits in certain areas. The Big Island has varying regulations by district. Hawaii's regulations reflect intense local debate about the impact of tourism on housing affordability and community character.
Calculate Your Hawaii Airbnb Tax
Enter your income, expenses, and select Hawaii to get an instant federal + state estimate.
Frequently Asked Questions
Does Hawaii tax Airbnb income?
Yes, heavily. Hawaii imposes up to 11% state income tax on net rental income, plus 10.25% Transient Accommodations Tax (TAT), 4.5% General Excise Tax (GET), and a 3% county TAT surcharge in all four counties. Total occupancy taxes can reach 17.75% — among the highest in the nation. Hawaii's combined income and occupancy tax burden makes it one of the most expensive states for STR operators. See Hawaii Department of Taxation and IRS Publication 527.
Does Airbnb collect Hawaii taxes?
Yes. Airbnb collects and remits the TAT (10.25%), GET (4.5%), and county TAT surcharges (3%) in Hawaii. This covers the primary tax obligations for most hosts. However, hosts must still register for GET and TAT licenses with the Hawaii Department of Taxation and file zero-balance returns even when Airbnb collects. Failure to register and file can result in penalties.
Can I legally Airbnb in Maui?
It depends on your zoning and permit status. Maui County passed Bill 41 in 2024, which phases out STR operations in non-hotel-zoned areas over several years. If your property is in a hotel zone, you may continue to operate. If it is in a residential or agricultural zone, your existing permit may be phased out. New STR permits in non-hotel zones are extremely difficult to obtain. Consult with a local attorney and the Maui County Planning Department before investing.
What is Hawaii's TAT?
The Transient Accommodations Tax (TAT) is Hawaii's lodging-specific tax at 10.25% of gross rental income for stays under 180 days. It is separate from the General Excise Tax (GET). In 2024, all four Hawaii counties added a 3% county TAT surcharge, bringing the effective TAT to 13.25%. The TAT funds the state's general fund and tourism infrastructure. Registration is required through the Hawaii Department of Taxation on Form BB-1.
Is Hawaii still profitable for Airbnb hosts?
Hawaii remains profitable for many STR operators despite high taxes (17.75% occupancy + up to 11% income tax) because nightly rates are among the highest in the U.S. Average nightly rates of $200-400+ in Honolulu, Maui, and Kauai offset the tax burden. However, regulatory risk is significant — Maui's permit phase-outs could eliminate thousands of legal STRs. Hosts should factor in regulatory uncertainty, high property costs, and high taxes when projecting returns.