Buying a Vacation Rental on the Big Island: Zoning, Registration & Taxes

Not legal or tax advice. This is a plain-language summary of public rules as I found them on October 22, 2026. Rules are changing (see Bill 147 below). Confirm any property with the County Planning Department, a Hawaiʻi real estate attorney and a Hawaiʻi tax professional before you rely on rental income.

1. Where County zoning allows short-term rentals

Hawaiʻi County's short-term vacation rental (STVR) rules, adopted as Ordinance 2018-114, apply to unhosted rentals of under 30 days.¹² They're allowed:

In resort (V), general commercial (CG) and village commercial (CV) zoning
In residential and commercial districts inside General Plan Resort and Resort Node areas
In qualifying condominiums

Outside those areas, only rentals that held a nonconforming use certificate (NUC) from before April 1, 2019 may continue, renewed each year. Agricultural-district parcels created on or after June 4, 1976 can't operate one.¹²

How I check a parcel: I look up the zoning, State Land Use District and General Plan designation by TMK on the state's GIS layers,³ then ask the seller for any NUC or permit and confirm its status with Planning. A listing that says "vacation rental allowed" is a starting point, not proof.

2. County TVR registration (new as of Sept. 1, 2026)

Ordinance 25-50 created a County registry for transient vacation rentals (TVRs): any dwelling, unit or room rented for less than 180 consecutive days, hosted or not.⁴ Registration opened Sept. 1, 2026, and Bill 175 keeps the registration window open through Dec. 31, 2026.⁵

County TVR registration under Ordinance 25-50. Checked October 22, 2026.
	Hosted (host lives on the property)	Unhosted
Registration fee	$250	$500
Annual renewal	$100	$250

It doesn't transfer. A registration expires 90 days after the property changes ownership; the new owner must register.⁴
You need your tax licenses first. The application asks for the property's TMK and address, owner and "reachable person" contacts, a site drawing, a tax-clearance certificate showing no delinquent County property tax or TAT, and copies of your state GET license and TAT registration.⁴
"Reachable" means answering a call from a guest, neighbor or the County within one hour and being on site within three hours.⁴
Penalties: operating unregistered can bring a civil fine of $1,000 to $10,000, plus a daily fine of up to twice the highest nightly rate advertised in the past 12 months. A late renewal adds a $90 fee.⁴
Registration isn't permission. The ordinance says registering grants no new rights, so zoning (section 1) still decides whether a short-term rental is allowed.⁴

Pending: Bill 147 would rework the categories (hosted "bed and breakfast" vs. unhosted "short-term vacation rental"), zoning and penalties. It was still before the County Council as of Oct. 22, 2026.⁵⁶

3. State and County tax registration

Rental income from stays under 180 consecutive days is "transient" and carries three taxes on gross rental proceeds, on top of income tax.⁹

Taxes on transient rental income in Hawaiʻi County. Checked October 22, 2026.
Tax	Rate	Register / file
General excise tax (GET)	4% state + 0.5% Hawaiʻi County surcharge = 4.5% (surcharge through Dec. 31, 2030)	Form BB-1 on Hawaii Tax Online; one-time $20 license fee⁷⁸
State transient accommodations tax (TAT)	11% (Jan. 1, 2026 – Dec. 31, 2030, under Act 96)	TAT certificate of registration; $5 one-time fee for 1–5 units⁹¹⁰¹¹
Hawaiʻi County TAT	3% (Ordinance 21-89)	Paid to the County on the same schedule as the state TA-1 returns¹²

Periodic GET and TAT returns are due on the 20th day of the month after each period (monthly, quarterly or semiannual), with an annual return as well.⁷¹²
You may visibly pass GET on to guests, at no more than 4.712% in Hawaiʻi County.⁷
State law requires you to display your TAT registration (or a notice of where it can be inspected) and your local contact's name, phone and email at the rental, and to show the registration ID (or a link to it) and the local contact in every ad. Fines start at $500 a day for a first violation.¹¹
A rental generally won't qualify for the County's Homeowner property-tax class, which is for your own principal home. For example, the Residential class rate is $11.10 per $1,000 of net taxable value for FY 2026–27 (on the first $2 million), vs. $5.75 for Homeowner.¹⁴¹³ Ask the Real Property Tax Office which class applies to your property.

4. Condo and HOA rules: the second layer

Even where the County allows a short-term rental, a condominium association or HOA can restrict it. Before an offer, I get and read:

The declaration, bylaws, CC&Rs and house rules: minimum stays, caps on rentals per year, required on-site or approved rental programs, guest registration, parking and pet rules
Any pending amendments or votes on rental rules (an owners' vote can change them after you close)
Association fees, what they include, reserve levels and any special assessments, since they hit rental margins directly
Any rental-related fees the association charges (check-in, registration, cleaning or front-desk fees)
Insurance: what the master policy covers, and whether your own policy covers short-term guests

If the County rules and the association's rules disagree, the stricter one controls what you can actually do.

5. Illustrative tax example (adjust the inputs)

Illustrative only. The nightly rate, nights booked and costs below are placeholder inputs for you to change, not a forecast of what any property earns. Only the tax rates and County fees are sourced (sections 2 and 3). Taxes are estimated simply as a percentage of gross rent; your actual tax base depends on fees, pass-on and other details your tax professional will sort out.

Mortgage, income tax and depreciation aren't included. For ownership costs, use the true monthly cost calculator with the property-tax class set to Residential.

Before you write an offer

Zoning, Land Use District and General Plan designation confirmed by TMK
NUC or permit status (if outside permitted areas) confirmed with Planning
County TVR registration plan, knowing the seller's registration won't carry over
GET license and TAT registration lined up before your first booking
Association documents read for rental limits, fees and pending votes
Insurance quotes that cover short-term guests
Lava zone, water and wastewater checked like any other purchase (moving guide)

FAQ

Can I run a vacation rental anywhere on the Big Island?

No. Under Ordinance 2018-114, unhosted rentals of under 30 days are allowed in resort (V), general commercial (CG) and village commercial (CV) zoning, in residential and commercial districts inside General Plan Resort and Resort Node areas, and in qualifying condominiums. Elsewhere, only rentals that held a nonconforming use certificate from before April 1, 2019 may continue.

Does a vacation-rental registration transfer when I buy?

Not automatically. Under Ordinance 25-50, a County TVR registration expires 90 days after the property changes hands, so a buyer has to register in their own name.

What taxes apply to short-term rental income?

Hawaiʻi's general excise tax (4%, plus Hawaiʻi County's 0.5% surcharge), the state transient accommodations tax (11% from Jan. 1, 2026) and the County transient accommodations tax (3%), each on gross rental proceeds for stays under 180 days. Income tax is separate. Confirm your situation with a Hawaiʻi tax professional.

Can a condo association ban short-term rentals even where zoning allows them?

Yes, private covenants and house rules can restrict or ban rentals even where the County allows them. Read the CC&Rs, bylaws and house rules before you write an offer.

Not legal or tax advice. Hayden Fennoy is a REALTOR® (S), not an attorney or tax professional. Rules, rates and fees reflect the cited sources when checked on October 22, 2026 and can change; Bill 147 may change County rules. Verify every property with the County Planning Department, the Real Property Tax Office, the Hawaiʻi Department of Taxation and your own advisors.

Sources · checked October 22, 2026

County of Hawaiʻi Planning Dept., Short-Term Vacation Rentals (Ordinance 2018-114): planning.hawaiicounty.gov
County of Hawaiʻi, STVR Application Packet (permitted districts; agricultural-lot rule): records.hawaiicounty.gov
Hawaiʻi Statewide GIS Program: County zoning, State Land Use Districts, General Plan LUPAG: geodata.hawaii.gov
County of Hawaiʻi, Ordinance 25-50 (Bill 47, Draft 3): transient vacation rental registration, Hawaiʻi County Code ch. 6, art. 6: records.hawaiicounty.gov
Hawaii Tribune-Herald, Sept. 8, 2026: TVR registration takes effect (Sept. 1 start; Bill 175 keeps registration open through Dec. 31, 2026): hawaiitribune-herald.com
Hawaii Tribune-Herald, Oct. 22, 2026: County Council action on Bill 147: hawaiitribune-herald.com
Hawaiʻi Department of Taxation, General Excise Tax (GET) Information ($20 license, BB-1, rates, pass-on, due dates): tax.hawaii.gov
Hawaiʻi Department of Taxation, County Surcharge on General Excise and Use Tax: tax.hawaii.gov
Hawaiʻi Department of Taxation, Form TA-1 Instructions (TAT rate 11% from Jan. 1, 2026; transient = less than 180 consecutive days): files.hawaii.gov
Hawaiʻi Department of Taxation, Announcement 2026-01 (Act 96, TAT rate change): files.hawaii.gov
Hawaiʻi Revised Statutes §237D-4 (TAT registration, display and advertising rules, fines): capitol.hawaii.gov
County of Hawaiʻi, Transient Accommodations Tax payments help center (Ordinance 21-89, 3%): tat.ehawaii.gov
County of Hawaiʻi Real Property Tax Office, Tax Rates (FY Jul 1, 2026 – Jun 30, 2027): hawaiipropertytax.com
County of Hawaiʻi Real Property Tax Office, Homeowner Program (home exemption): hawaiipropertytax.com

Buying a vacation rental on the Big Island.