2026 Guide to Maui Short-Term Rental Taxes

As of January 1, 2026, Hawaii has implemented significant changes to the tax landscape for vacation rentals. For owners on Maui, staying compliant means understanding the new "Green Fee" state tax increase and the current tiered property tax system.

Short-term rentals (STRs) are defined as any stay of less than 180 days. To operate legally, you must collect and remit three specific transactional taxes and pay property taxes based on your specific rental classification.

Total Rental Tax Breakdown (The 18.5% Rule)

In 2026, the total transactional tax burden for a Maui vacation rental is 18.5%. This is comprised of three separate taxes that must be filed with the State and County.

1. General Excise Tax (GET) – 4.5%

• This includes the 4% State rate plus the 0.5% Maui County Surcharge.
• Pro Tip: Most owners use a "pass-on" rate of 4.712% to guests to account for the tax on the tax.

2. Hawaii State Transient Accommodations Tax (TAT) – 11.0%

• New for 2026: Effective January 1st, the State TAT increased from 10.25% to 11.0%. This 0.75% increase is often referred to as the "Green Fee," dedicated to climate and environmental conservation.

3. Maui County Transient Accommodations Tax (MCTAT) – 3.0%

• This is a local surcharge collected directly by the County of Maui in addition to the state taxes.

Important: While platforms like Airbnb and VRBO may collect some taxes, Hawaii law often requires the owner to be the ultimate responsible party for filing. Always verify your specific account settings.

2026-2027 Maui Property Tax Rates

Maui County uses a tiered system for the TVR-STRH (short-term rental) classification. These rates apply for fiscal year 2026-27 (July 1, 2026 to June 30, 2027), per $1,000 of net taxable assessed value:

• Tier 1 (up to $900,000): $13.00
• Tier 2 ($900,001 to $3,000,000): $15.00
• Tier 3 (over $3,000,000): $17.00

For comparison, the Hotel and Resort class is $11.80, and the Long-Term Rental class starts at $2.90. See our Maui vacation rental investment guide for all classes and an example.

Rates are set by the County Council each June for the next fiscal year (Resolution 26-69 FD2 for FY2026-27).

Compliance & Registration Requirements

To operate a short-term rental in 2026, you must maintain the following:

• Hawaii State Tax ID: Required for GET and TAT filings.
• Maui County MCTAT ID: Required for local tax payments.
• Advertising disclosures: every ad, including online listings, must show your TAT registration number and the name, phone and email of an on-island local contact. Fines run from $500 a day for a first violation up to $5,000 a day. See the local contact requirement.
• Zoning: confirm the unit is legal for stays under 180 days. Apartment-zoned Minatoya list condos lose that use on January 1, 2029 in West Maui and January 1, 2031 elsewhere under Bill 9. See the Minatoya list.

Expert Guidance for Maui Investors

The tax and regulatory environment on Maui is evolving quickly, especially with the ongoing discussions regarding Bill 9 and the phase-out of certain short-term rentals. Partnering with a knowledgeable real estate team is more important than ever to protect your investment.

Important: Some "Minatoya List" properties in apartment zones are facing phase-out deadlines in 2029/2031, so buyers should consult with us first.

Are you navigating the 2026 tax changes?

We can help you analyze your property's ROI under the new tax rates or help you find "long-term rental" opportunities that offer significant property tax breaks.

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