If you own a vacation rental in Waikiki or Kihei, understanding Hawaii GET and TAT is part of the job. These two state taxes apply to nearly every short-term stay in the islands, the rates changed at the start of 2026, and the year-end filing season is just around the corner. This guide walks through the basics in plain language so you know what applies to your property, what changed and what questions to bring to your tax professional.
One important note before we start: we are a property management company, not a tax firm. This article is general information, not tax or legal advice. Every owner’s situation is different, so please work with a licensed CPA or tax advisor familiar with Hawaii rules.
Hawaii GET and TAT: The Two Taxes Every Owner Should Know
Hawaii does not have a traditional sales tax. Instead, it has two taxes that matter most for vacation rental owners.
General Excise Tax (GET)
The GET is a tax on gross receipts from doing business in Hawaii, and rental income counts. The state rate is 4 percent, and every county now adds a 0.5 percent surcharge, so the combined rate on Oahu and Maui is 4.5 percent. Because the GET is technically a tax on the business, not the guest, owners are allowed to “pass on” the tax to guests at a slightly higher maximum rate of 4.712 percent. That small difference accounts for the fact that the GET also applies to the tax you collect.
Transient Accommodations Tax (TAT)
The TAT applies to stays of less than 180 consecutive days in a hotel, condo, house or other accommodation. It is charged in addition to the GET, so most short-term rentals owe both.
There are two layers:
- State TAT: 11 percent as of January 1, 2026, up from 10.25 percent. The increase came from Act 96, the legislation often called Hawaii’s “green fee,” which directs new revenue toward environmental and climate resilience programs.
- County TAT: Each county, including the City and County of Honolulu and Maui County, adds its own 3 percent TAT.
Put together, a typical vacation rental stay on Oahu or Maui carries roughly 18.7 percent in combined GET and TAT when the GET is passed on to the guest. That number is worth knowing when you set rates and compare your listing to hotels nearby.
What Changed in 2026
The biggest change is the state TAT increase from 10.25 to 11 percent. Practically, that means:
- Your booking engine, channel settings and any direct-booking quotes should reflect the new rate for stays on or after January 1, 2026.
- Guests see a slightly higher total, which makes clear, upfront pricing even more important for conversion and reviews.
- Your periodic and annual returns for 2026 should reflect the new rate. If anything was set up incorrectly early in the year, now is a good time to catch it before the annual filing.
Registration, Licensing and Advertising
Before you collect a single night of rent, you need to be registered with the Hawaii Department of Taxation for both GET and TAT. The state uses one registration form (Form BB-1) for both. Some other basics:
- Display requirements: Operators must display their TAT registration certificate (or a notice of where it can be inspected) in each unit, along with a local contact’s name, phone number and email address.
- Advertising: State law requires your TAT registration number to appear in online and print advertising for a transient accommodation. Counties have their own registration and advertising rules on top of that.
- County TAT: On Oahu, the county TAT is administered by the state. On Maui, the county TAT is registered and filed directly with Maui County, so Maui owners have an additional account to manage.
On Oahu, legal short-term rental status matters just as much as taxes. If you are not sure whether your property can legally rent for less than 90 days, read our guides on where STRs are allowed on Oahu and Nonconforming Use Certificates.
Filing: Periodic Returns and the Annual Reconciliation
GET and TAT are filed on a regular schedule (monthly, quarterly or semiannually, depending on how much tax you owe), plus an annual reconciliation return for each tax. For calendar-year filers, the annual returns are generally due on the 20th day of the fourth month after the year ends, which is April 20. Late filing and late payment can bring penalties and interest, so it pays to stay ahead.
Year-end is also a good time to gather your records for your income tax preparer. Most will want:
- Monthly owner statements and a year-end summary of gross rental income
- Copies of GET and TAT returns filed and payments made
- Records of expenses such as HOA dues, repairs, supplies, utilities, insurance and management fees
- Any 1099 forms from booking platforms or your management company
Booking Platforms and Who Pays What
This is where owners most often get confused. Some booking platforms collect and remit certain Hawaii taxes on bookings made through their site, but what they cover can vary by platform and has changed over time. Even when a platform remits on your behalf, you may still have registration, reporting or filing obligations of your own, and direct bookings are always your responsibility.
The safest approach is to confirm, in writing, exactly which taxes each channel collects and remits for your property, then reconcile that against your own filings with your CPA.
How a Local Property Manager Helps
Taxes are one more reason many owners choose to work with a local, full-service manager. At Midway Vacations, our team handles day-to-day operations for more than 170 properties in Waikiki and Kihei, and we help owners stay organized with:
- Correct tax rates configured across booking channels and direct bookings
- Clear monthly owner statements that make filing easier
- Local contact coverage required for Hawaii transient accommodations
- Pricing strategy that accounts for the full guest cost, taxes included
Curious how management works and what it costs? Read What Does It Cost to List My Property with Midway? or visit our property management page.
Bottom Line on Hawaii GET and TAT
Hawaii GET and TAT are not complicated once you understand the moving parts: GET at 4.5 percent (up to 4.712 percent passed on), state TAT at 11 percent and county TAT at 3 percent, plus regular filings and an annual reconciliation. The 2026 rate change is a good reminder to review your setup now, before year-end and before tax season arrives. Talk with your CPA about your specific situation, and keep your records clean all year.
If you own a Waikiki or Kihei vacation rental and would like a partner who understands the local rules, reach out to our owner relations team. We are happy to talk through your property, your goals and how we can help you earn more with less stress. Mahalo!
