Skip to main content
STVR

STVR IN HAWAII

If you are planning to own a Vacation Rental Property on the Big Island of Hawaii and operate on AirBnB or VRBO you need to be aware that you will be subject to paying taxes to the State of Hawaii and will be subject to Hawaii State Income Tax as well. In this post, we will discuss what these taxes mean for those who want to learn more about owning a vacation property in Hawaii, and particularly The Big Island of Hawaii. We will also discuss the procedures on how to get started:

The first thing that you need to ask yourself before you begin is the following:

If you own a condo: Does my complex allow Short Term Vacation Rentals?

If you own a home: Does the CC&R’s and HOA allow STVRS in the subdivision?

If the answers above are yes, then you can proceed with the steps below:

 

1) File for an STVR License

2) Property Tax

3) General Excise Tax (GET)

– GET is collected by the State of Hawaii and varies depending on which island you live on. All gross rental revenue (before expenses) from Hawaii properties is subject to Hawaii’s General Excise Tax (GET).

You may collect your renters’ GET and send it to the tax office. If you do, then you will have a higher gross rental revenue and become taxed at the same rate for that money.

You may also collect the additional GET on top of the GET from your renters. The total represents the maximum pass-on rate you are allowed to collect from your tenant. Please note that passing on the GET is not a requirement and it is only optional

Here is the GET surcharge table link below :

https://www.hawaiicounty.gov/departments/finance/budget/general-excise-tax-surcharge

 

3) TAT

State Income Tax

Where to Pay?

How often and when do I have to file and pay?

What to ask your future property manager?

Where to start?

Watch this video to learn more about STVR’s in Hawaii

My dear friend and client Dan Christensen filmed this very special video in his beautiful condo in Keauhou! We discussed everything you need to know in regards to STVR permits AND he happens to be so knowledgeable that he can be hired in the event that you need help with this process.