If you’re investing in or managing rental property on Oʻahu—especially vacation rentals—it’s crucial to understand how Hawaii’s General Excise Tax (GET) and Transient Accommodations Tax (TAT) apply. These taxes impact your bottom line and your compliance with state and local laws.

In this post, we break down what GET and TAT are, who needs to pay them, and how they affect property owners and renters on Oʻahu.

What Is the General Excise Tax (GET)?

The General Excise Tax is Hawaii’s version of a sales tax—but it’s broader. Rather than being charged directly to the consumer, the GET is a tax on business income. However, businesses often pass this cost on to the customer.

Key Points:

• The base GET rate on Oʻahu is 4.5% (4% state + 0.5% county surcharge).

• GET applies to gross rental income, including long-term residential leases and short-term vacation rentals.

• Unlike a sales tax, GET is charged on the total amount collected, including any TAT and cleaning fees.

Example:
If you charge $2,000/month for rent, you owe GET on the full $2,000, even if it includes utilities or cleaning—unless separately broken out.

What Is the Transient Accommodations Tax (TAT)?

The Transient Accommodations Tax is an additional tax on rental income from properties rented for less than 180 consecutive days. It’s designed specifically for vacation rentals, hotels, and other short-term lodging.

Key Points:

• The TAT rate on Oʻahu is 13.25% (10.25% state + 3% county surcharge).

• Applies only to short-term rentals (less than 180 days).

• This tax is in addition to the GET.

Example:
If a guest books a 7-night stay for $3,000, you’d pay:

• GET: 4.5% on $3,000 = $135

• TAT: 13.25% on $3,000 = $397.50
  Total taxes owed: $532.50

Who Needs to Pay GET and TAT?

If you are:

• A property owner renting short-term (Airbnb, VRBO, etc.)

• A long-term landlord (even traditional 6- or 12-month leases)

• A property manager or business entity earning income from rentals

...then you likely owe GET, and possibly TAT, depending on the lease terms.

You must register for:

• A GET license with the Hawaii Department of Taxation

• A TAT license if offering short-term stays

More information can be found here: https://files.hawaii.gov/tax/legal/brochures/Res_RP_brochure-23.pdf

Filing and Compliance

Hawaii requires monthly, quarterly, or annual filings, depending on your revenue. Late filings come with steep penalties and interest.

Make sure to:

• Display your GET and TAT license numbers if advertising a short-term rental

• Separate out charges like cleaning or utilities in your invoices if you don’t want them taxed

• Stay current with changes—county-level surcharges and enforcement can evolve

Final Thoughts

Understanding Hawaii’s GET and TAT requirements is key to running a compliant and profitable rental property on Oʻahu. These taxes may seem complex at first, but with the right guidance and recordkeeping, staying in good standing is entirely manageable.

If you’re a property owner, investor, or military family PCS’ing to Oʻahu and looking for expert support navigating the rental market—I’d be happy to help. As a Navy Reserve officer and full-time Realtor and property manager, I specialize in helping both local and off-island clients manage their homes with confidence.

Have questions about GET, TAT, or managing a rental property on Oʻahu? Contact me today for a free consultation.