Hawaii Statewide Rule

Hawaii Transient Accommodations Tax for Short-Term Rentals

Heavy RestrictionsApplies statewide across Hawaii (2026)

Key Facts

State TAT rate: 10.25%
County surcharge cap: 3 percentage points
Stay threshold: Under 180 days
Statute: HRS Chapter 237D
Agency: Department of Taxation

Last verified: September 5, 2026Source: Hawaii State Legislature

Summary

Hawaii imposes a statewide Transient Accommodations Tax (TAT) of 10.25% on gross rental proceeds for stays under 180 consecutive days, applying universally to all short-term rental operators in addition to the General Excise Tax.

§237D-2 Imposition and rates. (a) There is levied and shall be assessed and collected each month a tax of: (1) Five per cent for the period beginning on January 1, 1987, to June 30, 1994; (2) Six per cent for the period beginning on July 1, 1994, to December 31, 1998; (3) 7.25 per cent for the period beginning on January 1, 1999, to June 30, 2009; (4) 8.25 per cent for the period beginning on July 1, 2009, to June 30, 2010; (5) 9.25 per cent for the period beginning on July 1, 2010 to December 31, 2025; and (6) Ten per cent for the period beginning on January 1, 2026, and thereafter, on the gross rental or gross rental proceeds derived from furnishing transient accommodations;

Source: Hawaii State LegislatureView official code

Full Breakdown

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.

Violations & Penalties

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.

Frequently Asked Questions

Do I owe TAT if I rent through Airbnb or Vrbo?

Yes. Hawaii TAT applies to all transient rentals regardless of platform. Some platforms collect and remit TAT on behalf of operators, but the operator remains legally responsible for compliance and registration.

When does a rental become exempt from TAT?

Rentals under a written agreement for 180 or more consecutive days are not transient and are exempt from TAT for that rental period, though General Excise Tax may still apply.

Can counties impose their own TAT?

Yes. Since 2021, counties may add a surcharge up to 3 percentage points on top of the state 10.25% rate. All four counties have enacted the maximum 3% county surcharge.

Sources

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