April 6, 2026 · Hawaii STR State Tax Guide

Hawaii Short-Term Rental Tax Guide for Airbnb Hosts (2025)

Hawaii is in a category of its own for short-term rental taxation. The state imposes both a General Excise Tax (GET) and a Transient Accommodations Tax (TAT) on short-term rentals — and on top of those, the state has an income tax that reaches 11% at the top bracket, the highest personal income tax rate of any state in the nation. Meanwhile, each county has enacted its own STR restrictions that range from strict to outright bans in certain areas.

Despite the regulatory complexity, Hawaii remains one of the highest-earning STR markets in the world. ADRs of $400–$700/night are common for well-located properties, and strong year-round demand means occupancy rarely collapses the way it does in purely seasonal markets. This guide covers the full tax picture for Hawaii STR hosts.

Hawaii STR Tax Rates Overview

Hawaii hosts face the most complex and highest-rate STR tax structure of any U.S. state. Both GET and TAT apply to gross rental revenue, and the taxes are calculated cumulatively (TAT is applied to the gross amount including GET).

General Excise Tax (GET)

Hawaii's GET is a gross receipts tax that applies to virtually all business activity in the state, including short-term rentals. The standard rate is 4%, with a 0.5% county surcharge on Oahu (City & County of Honolulu) and Maui County, bringing those rates to 4.5%.

GET is filed using Form G-45 (periodic return, filed monthly or quarterly) and Form G-49 (annual reconciliation). Airbnb collects and remits GET for qualifying Hawaii hosts, but you must still obtain a Hawaii GET license (Form BB-1) even if Airbnb handles collection.

Transient Accommodations Tax (TAT)

The TAT is Hawaii's hotel-specific tax, currently at 10.25% of gross rental receipts (including GET). For Maui County, an additional 3% county TAT surcharge applies, bringing the effective county TAT rate in Maui to 13.25%. TAT is filed using Form TA-1.

Hawaii State Income Tax

Hawaii has the highest personal income tax rate of any U.S. state: 11% on income above $200,000 (married) or $100,000 (single). The graduated structure includes 12 brackets. For most STR investors earning moderate rental income:

• ~6.4%–7.25% effective rate for moderately high earners
• Up to 11% for higher-income investors

Net rental income is reported on Hawaii Form N-11 (residents) or N-15 (non-residents). Hawaii generally conforms to federal depreciation rules. Non-resident owners of Hawaii rental property must file Hawaii returns regardless of whether they also file in their home state.

County STR Restrictions by Island

Hawaii's four counties have each enacted their own STR regulations — and they vary dramatically.

Oahu (City & County of Honolulu)

Honolulu has enacted some of the strictest STR regulations in the U.S. Key rules:

• Non-hosted STRs (owner not present) are generally prohibited in residential zones (A-1, A-2, B-1, B-2)
• Bed and breakfast homes (owner-occupied hosted rentals) require a B&B permit; permits are limited and issued by lottery in some areas
• STRs are permitted in hotel zones (resort areas like Waikiki) and certain resort-zoned properties
• Violations carry fines of up to $10,000 per day

Maui County

Maui has instituted a moratorium on new STR permits in residential areas. Existing permitted properties are grandfathered but face strict compliance requirements. The combination of permit scarcity and high demand makes legal Maui STR properties extremely valuable.

Kauai County

Kauai allows TVRs (Transient Vacation Rentals) in Resort and Visitor Destination Area (VDA) zones with a permit. Non-VDA TVRs have a moratorium on new permits in many residential zones.

Hawaii County (Big Island)

Hawaii County has somewhat more permissive STR rules than Oahu or Maui, but still requires permits in most zones. The Big Island's diverse landscapes (Kona coffee country, Volcano area, Kohala Coast) create multiple distinct STR markets.

Key Deductions for Hawaii STR Hosts

High-Cost Operating Environment

Hawaii's island location creates significant additional costs that are fully deductible:

• Shipping costs: Furniture, appliances, and supplies must often be shipped to the islands at substantial expense — deductible
• Hurricane and flood insurance: Essential for Hawaii properties; premiums are high and fully deductible
• Property management fees: Hawaii's STR management market is mature; typical fees of 25–35% of gross revenue are all deductible
• Saltwater and humidity damage repairs: Tropical climate accelerates deterioration; frequent repair costs are deductible
• Pest control: Tropical pest management (termites, cockroaches, ants) is a recurring cost in Hawaii properties
• Air conditioning maintenance: Year-round AC use in Hawaii; service contracts, refrigerant refills, unit replacement all deductible

Standard Deductions

• Depreciation: 27.5 years on residential structure (only the building; Hawaiian land values are high but land is not depreciable)
• GET and TAT paid (deductible as business taxes)
• Platform fees and marketing
• Cleaning and turnover services
• Utilities
• Mortgage interest and property taxes
• Travel to the property for management purposes (including airfare from mainland — deductible if the primary purpose of the trip is rental management)

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