Hawaii Short-Term Rental Update: Where All Four Counties Stand

Hawaii’s short-term rental rules have never been a single set of laws — they’re four separate county frameworks that increasingly have little in common, layered over a rising state tax. If you own, operate, or are thinking about buying a vacation rental anywhere in the islands, here’s where things actually stand as of June 2026.

The throughline across every island is the same: push vacation rentals toward resort and visitor districts, protect residential neighborhoods, and give counties firmer tools to retire or track STRs in residential zones. How each county pursues that goal, though, varies dramatically — from Maui’s outright phase-out to the Big Island’s registration-and-accountability approach.

Statewide: the tax floor just went up

Regardless of island, the cost of operating rose on January 1, 2026, when the state Transient Accommodations Tax (TAT) increased to 11%. Stacked with the General Excise Tax and county surcharges, the effective tax burden on gross rental revenue now lands somewhere around 18–19% in most counties. Platforms like Airbnb and Vrbo typically collect and remit state GET and TAT on bookings made through them, but the operator remains responsible for county surcharges and accurate reporting.

Maui County: the phase-out, plus a possible lifeline

Maui is running the most aggressive policy in the state. Bill 9 (Ordinance 5909), signed in December 2025, phases out short-term rentals in apartment-zoned (A-1/A-2) districts — the roughly 7,000 “Minatoya List” units, mostly in Kihei and West Maui. The deadlines: short-term use ends January 1, 2029 in West Maui and January 1, 2031 in the rest of the county.

The newest development is Bill 88, which the County Council passed on final reading June 19, 2026 by a 7-2 vote and which now awaits the mayor’s signature. It creates two new hotel zoning districts — H-3 and H-4 — as a “like-for-like” classification for roughly 4,500 grandfathered rentals at 104 Minatoya properties. The critical caveat: Bill 88 only establishes the districts; it does not rezone any property automatically. Each owner would have to apply separately, and testimony pegged the required land-use studies at $200,000 to $500,000 per property — a cost that could blunt the bill’s practical impact.

Bill 9 also remains in active litigation, with property owners arguing an unconstitutional taking. As of now, no court has issued an injunction, so the phase-out deadlines remain in effect. Hotel- and resort-zoned units are unaffected throughout.

Oʻahu: resort zones only, and a rule stuck in limbo

Honolulu has the most established restrictions. Under Bill 41 (Ordinance 22-7, effective October 2022), transient vacation units are confined to resort-zoned areas. Outside those zones, short-term rentals face a 90-day minimum stay, with limited grandfathering for properties that were legally operating at a 30-day minimum when the law took effect. Operating a non-compliant whole-home rental in a residential zone can draw fines reported as high as $10,000 per day.

The 90-day minimum remains legally contested. The city has tried twice to bar stays under 90 days, and federal courts have twice signaled that it can’t simply terminate prior lawful uses — leaving the rule in a kind of standoff. For investors, the practical reality is that the viable Oʻahu opportunities are largely resort-zoned properties and existing grandfathered permits.

Hawaiʻi Island (Big Island): registration arrives July 1

The Big Island remains the most permissive of the four counties on zoning, but that’s changing on the compliance side. Bill 47 (Ordinance 25-50), signed in 2025, introduces mandatory annual registration for short-term rentals — defined as stays under 180 consecutive days — and, for the first time, brings hosted rentals (where the owner lives on the parcel) into the framework alongside unhosted ones.

After several delays, the effective date was pushed via Bill 98 (Ordinance 25-92) to July 1, 2026. Registration fees run $250 for hosted and $500 for unhosted rentals, with renewals at lower amounts; hosting platforms must register for $1,000 and report monthly. Fines for operating unregistered reach up to $10,000. One important wrinkle: as of recent reporting the county was still building the registration portal, so operators should watch the Hawaiʻi County Planning Department directly for the live launch rather than assume a smooth rollout.

Layered on top, a newer measure (Bill 147) would add operational standards — occupancy limits, extended quiet hours, restrictions on large events like weddings without a permit — and refine definitions for hosted vs. unhosted rentals. It reflects the county’s intent to move from “register” toward “register and regulate.”

The underlying zoning baseline (Bill 108, Ordinance 2018-114) still governs where STRs are allowed — generally resort, hotel, and certain commercial/multifamily districts — with a Nonconforming Use Certificate path for legacy operators outside those zones.

Kauaʻi: the visitor-district model, with a hard renewal rule

Kauaʻi has long relied on a Visitor Destination Area (VDA) model, confining most legal short-term rentals to designated visitor districts. New residential transient vacation unit permits have been effectively unavailable since a 2008 moratorium, so most active residential STRs operate on grandfathered pre-2008 certificates. The county also requires a posted permit/registration number and a 24/7 local contact.

The notable trap for operators is the renewal policy, which is described as zero-tolerance: missing a permit renewal — even by a single business day — can mean permanent forfeiture with no path to reapply. For buyers, the two realistic routes are acquiring an existing grandfathered-permit property or a resort-zoned one.

What it means for owners and buyers

The investment math now hinges almost entirely on zoning and compliance status, not just location or view. A resort- or hotel-zoned unit is the cleanest path on every island — purpose-built for visitor use and largely insulated from the residential-zone crackdowns. Apartment- or residential-zoned units carry real regulatory risk: a phase-out clock on Maui, a 90-day floor on Oʻahu, registration-and-enforcement on the Big Island, and renewal-forfeiture exposure on Kauaʻi.

Before acting anywhere in the state, confirm the property’s zoning designation, permit or registration status, and use history — and budget for the higher 2026 tax load. Because several of these frameworks are mid-rollout or mid-litigation, current status can shift quickly.

This update reflects publicly available information as of June 23, 2026, and is intended as general information, not legal or financial advice. Maui’s Bill 88 awaits the mayor’s signature; Bill 9 / Ordinance 5909 remains subject to ongoing litigation; the Big Island’s Bill 47 registration portal was still being built as of recent reporting. Verify current details with the relevant county and a qualified professional before acting.