TAT Tax in Maui – What Real Estate Owners & Investors Should Know

If you own or are planning to purchase a short-term rental (STR) property in Maui, understanding how the Transient Accommodations Tax (TAT) works is essential. This state-level tax — along with Maui County’s local version — directly impacts your income and compliance obligations.

Whether you're a first-time vacation rental investor or looking to stay current in 2025, here’s what you need to know.

🧾 What Is the Transient Accommodations Tax (TAT)?

The TAT is a tax applied to rentals of less than 180 days in Hawaii. This applies to hotel rooms, resort condos, and short-term vacation rentals (TVRs).

There are currently two separate TATs that apply to Maui vacation rentals:

➡️ Total TAT liability for Maui STRs is 13.25%

📌 Who Needs to Pay TAT?

You are required to collect and pay TAT if you:

• Own a condo or home being rented for less than 180 days
• Advertise your property on Airbnb, VRBO, or similar platforms
• Operate a property with STR or hotel zoning, or hold a valid permit

You must also register for and file the General Excise Tax (GET), which applies separately.

➡️ Learn about STR zoning »

➡️ Learn about permitted rentals in Maui »

💡 How Is TAT Paid?

1. Register for a Hawaii TAT license via the Department of Taxation (Form TA-1)
2. File monthly or quarterly TA-1 returns and pay the required amount
3. As of 2021, County TAT payments are made to Maui County’s finance department via MauiCounty.gov

Failure to pay or file can result in penalties, interest, and back taxes.

🧭 Real Estate Considerations for Buyers & Sellers

If you're buying a property for short-term use:

• Confirm if the unit is TAT-compliant and properly registered
• Review past tax filings as part of your due diligence
• Understand the 13.25% TAT burden and how it affects pricing

➡️ View STR-friendly condos in Maui

➡️ Explore our 1031 Exchange Guide if you’re reinvesting STR income

If you're selling a vacation rental:

• Be prepared to provide GET/TAT records to buyers
• Clarify any outstanding tax obligations at closing
• Position your property accurately in MLS and marketing

➡️ See our full Maui Seller's Guide

🔍 Related Resources on MauiProperty.com

• Maui STR Rules & Hotel Zoning Explained
• Fee Simple vs Leasehold – Ownership Types
• Maui Market Reports
• Relocating to Maui – What to Know
• Understanding Maui Property Tax Rates
• 1031 Exchange in Hawaii – Complete Guide

📞 Need Help Navigating Maui’s Rental Tax Requirements?

Our team works closely with buyers and sellers to ensure STR properties are compliant, profitable, and well-positioned for success — even amid changing regulations.

📞 Call us at 808-217-8832

📨 Or schedule a consultation today

Video Overview of GET, TAT, and MCTAT by Brett Christiansen of Maui Property LLC below: