Hawaii Transient Accommodations Tax for Short-Term Rentals

Under HRS Chapter 237D, every operator of a transient accommodation in Hawaii must register with the Department of Taxation, collect TAT at 10.25%, and remit periodic returns. The tax applies to any rental of fewer than 180 consecutive days, including hotels, condos, B&Bs, and vacation rentals. Counties may impose an additional county TAT surcharge of up to 3 percentage points (Honolulu, Maui, Hawaii, and Kauai counties have enacted 3% surcharges). Operators must also register for a General Excise Tax license under HRS 237. Failure to register, collect, or remit triggers state enforcement, including liens, license revocation, and Department of Taxation audits.

Failure to register, collect, or remit TAT can result in tax assessments, penalties of up to 25% of unpaid tax, interest, and misdemeanor prosecution under HRS 237D-13.