Hawaii General Excise Tax (GET) on Rental Income: Rules & Requirements for Property Owners

Property owners in Hawaii – whether renting out a Waikiki condo as a vacation stay or a single-family home on a year-long lease – need to understand Hawaii’s General Excise Tax (GET) on rental income. Hawaii does not have a traditional sales tax; instead, it imposes a GET on nearly all business activity, including rental property income. In practice, this means that all rental income in Hawaii is subject to GET, and landlords must collect and pay this tax to the state. Below we explain what the GET is, why it’s required for Hawaii rentals, how the rules differ for short-term vs. long-term rentals, and how to register, file, and pay GET to stay compliant with state laws. We’ll also include guidance on other taxes like the transient accommodations tax (for vacation rentals) and provide resources (Hawaii.gov, Nolo, etc.) for further reading. By the end of this guide, you’ll have a clear understanding of Hawaii’s rental tax obligations – often referred to as “Hawaii rental tax” – and how to fulfill them.

What Is the General Excise Tax (GET) and Why Do Hawaii Rentals Pay It?

General Excise Tax (GET) is a broad statewide tax on the gross income of business activities in Hawaii, essentially Hawaii’s version of a sales tax (though technically it’s levied on businesses rather than consumers). If you earn income from renting out real property in Hawaii, the state considers you to be engaging in a business activity, and you are required by law to pay GET on your rental income. In other words, rental income isn’t just subject to income tax; it’s also subject to Hawaii’s GET as a condition of doing business in the state.

Why is GET required on rental income? Hawaii’s tax code explicitly includes rental property operations as taxable business activity. According to the Hawaii Department of Taxation, renting out a house, condo, or apartment is considered “engaging in a taxable business activity,” even if it’s just a single property or a part-time vacation rental. The GET is sometimes called a “privilege tax” – it’s the state’s way of taxing the privilege of doing business in Hawaii. The key points to understand about GET on rentals are:

  • GET is charged on gross rental income, not profit. This means you owe GET on the total rent you collect (including any cleaning fees or other charges to the tenant), before deducting expenses like maintenance, property management fees, or mortgage interest. It’s different from income tax, which applies to your net profit after expenses. (Most business expenses cannot be deducted from GET – gross receipts are taxed in full.)
  • The GET rate for rentals is about 4%–4.5%, depending on the county. The base GET rate is 4.0% statewide, and most counties add a surcharge of 0.5%. For example, on Oʻahu (Honolulu County) the effective GET rate is 4.5%, and similar rates apply on Maui, Kauai, and Hawaii County. In practice, many businesses pass on this tax to the customer by charging about 4.712% (which grossed-up covers the GET on the tax itself) in their billing. However, even if you don’t separately charge tenants, you as the owner are still responsible for remitting GET on the rental income.
  • Failure to pay GET can result in penalties and interest. Hawaii imposes penalties for late filing (5% per month up to 25%) and interest on late payments. Moreover, ignoring GET obligations can lead to tax liens or other enforcement actions down the line. Simply put, paying GET is not optional – it’s a legal requirement for Hawaii rental property owners.

In summary, the GET is a general excise tax on the gross rental receipts. Hawaii requires it for all rental properties, long-term or short-term. Next, we’ll clarify how the rules differ for short-term vs. long-term rentals in Hawaii, since short-term rentals have additional tax requirements beyond just GET.

Short-Term vs. Long-Term Rentals: GET Differences and Additional Taxes

All Hawaii rental income is subject to GET, but there’s an important distinction in Hawaii tax law based on the length of the rental term. Hawaii defines “short-term rentals” (transient accommodations) as rentals of less than 180 consecutive days to a tenant, and these short-term stays trigger an additional tax called the Transient Accommodations Tax (TAT) files.hawaii.gov. Long-term rentals (180 days or more, typically standard residential leases) are exempt from the TAT – they only incur GETfiles.hawaii.gov. Here’s a breakdown of the differences:

  • Long-Term Rentals (≥ 180 days): Only General Excise Tax applies. If you rent to a tenant for six months or longer (for example, a one-year lease on a house or condo), you must pay GET on the rental income (around 4.0–4.5% of the gross rent, depending on the island)HiCoastal.com. No Transient Accommodations Tax (TAT) is due on long-term rental contractsfiles.hawaii.gov. Essentially, long-term landlords need to worry about GET (and of course Hawaii income tax on the rental profits), but not the separate short-term rental tax.
  • Short-Term Rentals (< 180 days): GET and TAT both apply. If you operate a vacation rental, Airbnb, or any rental with stays shorter than 180 days, Hawaii deems this a “transient accommodation.” You must pay the standard GET on your gross rental income plus a Transient Accommodations Tax (TAT) on that same income. The TAT is essentially Hawaii’s short-term rental tax – as of this writing, the state TAT rate is 10.25% of your gross rental proceeds. In addition, each county now levies a county TAT of up to 3% (for example, Honolulu’s OTAT is 3%) on short-term rentals. This means short-term rental owners currently face roughly 13.25% in transient accommodation taxes (state + county) on top of the ~4.5% GET. Important: even ancillary income from short-term rentals (like cleaning fees you charge guests) is subject to both GET and TAT. Short-term rental owners need to register for a TAT license in addition to the GET license (discussed below), and file/pay both taxes regularly.

In practical terms, short-term rental operators will be collecting and remitting about 14–18% in combined taxes (GET+TAT) on their gross rental charges, whereas long-term rental owners will be paying around 4–5% (GET only) on their rental income. This is a significant difference, so it’s crucial to categorize your rental correctly. Note: Hawaii’s definition of “transient” is strictly based on the rental duration (180 days), regardless of whether the tenant is a tourist or a local renter. Even a month-to-month rental to a local resident would count as a short-term rental for tax purposes if the stay is less than 180 days, triggering TAT in addition to GET.

Lastly, remember that Hawaii income tax applies to all rental income (short or long term) as well, but income tax is separate from GET/TAT. You’ll report rental profits on your state (and federal) income tax returns annually, whereas GET and TAT are gross receipts taxes paid to Hawaii periodically throughout the year. Don’t confuse these obligations: Hawaii rental owners must both pay GET/TAT on their rental revenue and later pay income taxes on their rental profit. With the tax landscape clarified, let’s move on to how to register for a GET license and fulfill your tax filing duties.

How to Register for a Hawaii GET License (and TAT License for Short-Term Rentals)

Before collecting any rent, a Hawaii property owner should register for a GET license. Registering will give you a Hawaii Tax ID and allow you to legally file and pay the required excise taxes on your rental income. Here are the basic steps to register:

  1. Complete a State Tax License Application: Fill out Form BB-1, the State of Hawaii Basic Business Application to apply for a GET license (and a TAT license if you will have transient rentals). You can do this online via the Hawaii Tax Online portal or by submitting the form by mail/in person to the Hawaii Department of Taxation. There is a one-time $20 registration fee for a GET license (no annual renewal fee). If applying online, you’ll be guided through registering for the appropriate tax accounts (just be sure to check the box for TAT as well, if applicable). The form and online registration link are available on the Hawaii Department of Taxation website.
  2. Obtain Your Hawaii Tax ID (GET License Number): Once your application is processed, the state will issue you a Hawaii Tax Identification Number. This is your GET license number, which typically starts with “GE” followed by digits. Keep this license number handy, as you will need to include it on tax forms and Hawaii law requires landlords to furnish this number to their tenants. In fact, under the Hawaii Landlord-Tenant Code, you must provide your tax excise (GET) license number to renters (usually in the rental agreement or a posted notice) so that eligible tenants can claim a low-income renters’ tax credit. Failing to provide this info to tenants when required can result in penalties, so make sure to disclose your GET license number once you have it.
  3. Register for a TAT License (if Short-Term Rental): If you will be renting to transient guests (stays under 180 days), you must also register for a Transient Accommodations Tax (TAT) license in Hawaii. Fortunately, you can register for TAT at the same time you file for your GET license by indicating it on Form BB-1 (or the online application). There is no additional fee for the TAT registration itself (the $20 covers setting up the tax account). You’ll receive a separate TAT tax ID (usually starting with “TA”) alongside your GET ID. Similar to GET, you are expected to post or provide the TAT license in any rental advertising and rental agreements for short-term rentals, per state law.

After completing registration, you’ll have the necessary tax licenses to operate your rental business. You should receive official license certificates which you can display at your rental property (commonly done for vacation rentals). Note: Registering for these tax licenses is critical because you cannot legally collect or remit GET/TAT without them. The state has ramped up enforcement on unregistered rentals in recent years, including requiring platforms like Airbnb/Vrbo to verify tax IDs, so get licensed before you start renting. Now that you’re registered, the next step is understanding how to file and pay GET (and TAT) on your rental income.

How to File and Pay GET on Rental Income in Hawaii

Once you have a GET license and start collecting rent, you will need to file GET tax returns and pay the tax on a regular schedule. The Hawaii Department of Taxation has a well-defined process for this:

  • Filing Frequency (Periodic Returns): Hawaii requires periodic GET filings throughout the year. Depending on the amount of GET you owe, you will file either monthly, quarterly, or semiannual returns. Large landlords with substantial rental income will file monthly (if your annual GET liability exceeds a certain threshold, typically $4,000, the state mandates monthly filing). Moderate-income landlords file quarterly, and small landlords with minimal rent may file semiannually.The state will usually assign you a filing frequency when you register, based on your expected income, but it can be adjusted as needed. For example, if you only rent out a single condo with modest rent, you might qualify to file semiannual GET returns (two times a year). It’s important not to miss these periodic filings.
  • Due Dates: Each GET periodic return is due on the 20th day of the month following the close of the period. For instance, if you’re a quarterly filer, your Q1 (Jan–Mar) GET return is due April 20; a monthly January return is due by February 20, and a semiannual return for January–June would be due July 20. Hawaii is strict about the filing deadline – a return is considered late if not submitted by the 20th (if the 20th falls on a weekend/holiday, the due date moves to the next business day). Along with each return, the tax owed for that period must be paid by the deadline. In addition to the periodic returns, Hawaii requires an annual return (Form G-49) which summarizes the year’s gross receipts and tax payments. The annual GET return is due by the 20th day of the fourth month after the end of the taxable year – April 20 for calendar-year taxpayers. This annual filing is essentially a reconciliation: if you correctly filed and paid all your periodic GET taxes, the annual return will show no additional tax due (or any adjustments needed if you made errors during the year).
  • Forms and Online Filing: The periodic GET return is filed on Form G-45 (General Excise/Use Tax Return), and the annual reconciliation is on Form G-49. If you have rentals on multiple islands, there’s also a Form G-75 to allocate income by county (because of the different county surcharge rates). However, you don’t need to worry about paper forms if you file online. The Hawaii Tax Online (HTO) system is a convenient way to electronically file and pay your GET taxes. In fact, Hawaii mandates electronic filing for GET in many cases (if your liability exceeds certain amounts). Using HTO is free and relatively straightforward – you can input your gross rental income for the period and the system calculates the tax due, including the breakdown for any county surcharge. Many owners find it easiest to file online to avoid manual calculations. (If you prefer old-school paper filing, you can still mail in the G-45/G-49 forms with a check, but be mindful of mailing time to meet deadlines.)
  • Payment of the Tax: When you file your GET return, you’ll remit the tax due for that period. If filing online via HTO, you can pay electronically (through an e-check/ACH debit or credit card). Filing and paying online is free for e-check paymentstax.hawaii.gov (credit cards incur a small fee). If filing by mail, you would include a check for the tax or can pay in-person at a district office. Ensure that you pay the full amount by the due date; otherwise, penalties (5% per month of the unpaid amount, up to 25%) and interest (2/3 of 1% per month) will accrue on any late payments. Hawaii does allow you to pass on the GET to your tenant (i.e. charge them extra for the tax), but even if you do, you must include that amount as part of your gross receipts when calculating GET (essentially, if you charge 4% extra, that extra itself is taxable, which is why the gross-up to 4.712% exists). Many long-term landlords simply factor GET into the rent amount, whereas short-term rentals typically list the taxes separately to guests – either approach is legal as long as you remit the proper tax.
  • Recordkeeping: Be diligent in keeping records of all rental income received (rent, cleaning fees, any other charges) and taxes collected. You’ll need these records to file accurate GET returns. Also retain copies of your filed returns and proof of payments. This will help if there’s ever a discrepancy or audit. Note that Hawaii rental operators are also required to file TAT returns (Form TA-1 periodic, TA-2 annual) on the same schedule for short-term rental income – if you have to pay TAT, you generally file and pay it alongside your GET. The Hawaii Tax Online system handles both taxes, and the due dates for TAT mirror those for GET (20th of the month deadlines).

One piece of good news for overwhelmed landlords is that you don’t have to handle all of this alone. If you hire a professional property management company, they can often take care of GET and TAT filings for you. Many full-service property managers will collect the required taxes from tenants/guests and remit them to the state on your behalf. For example, they might add the GET and TAT as line items for a vacation rental guest’s bill, then file the tax returns each month for all the owners they represent. This can simplify your life significantly, ensuring taxes are paid on time and correctly. Just remember, even if someone else is handling the logistics, as the owner you are ultimately responsible for compliance – so choose a reputable management company if you go that route.

(For more detailed instructions on filing, you can refer to Hawaii’s official GET instruction booklet or guides from knowledgeable real estate forums like BiggerPockets and legal sites like Nolo. These resources cover scenarios like mid-year registration, how to report deposits or forfeited rent, exemptions (for example, subleasing deductions), and other special cases. But for most homeowners, the steps above cover the essentials of GET filing.)

HiCoastal Property Management GET Information and Compliance Support

Staying on top of Hawaii’s GET and TAT requirements can be time-consuming, especially for out-of-state owners or those new to Hawaii’s tax system. HiCoastal Property Management provides guidance and services to make this process easier for homeowners. (See our General Excise Tax (GET) information page on the HiCoastal website for reference and updates.) We help ensure that homeowners comply with all GET rules by assisting with the initial tax license registration, handling the ongoing filing of GET/TAT returns, and keeping accurate records of rental income and taxes. Our team stays current with Hawaii tax laws and county surcharges, so you won’t accidentally miss a new requirement. In short, HiCoastal Property Management helps rental property owners by taking the guesswork out of Hawaii’s rental tax compliance – from calculating the correct Hawaii rental GET and short-term rental TAT amounts to timely filing and remitting those taxes. By entrusting these responsibilities to an experienced local property manager, homeowners can enjoy the income from their Hawaii investment property without worrying about tax penalties or complex paperwork, confident that all GET obligations are being met properly and efficiently.

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