As of January 1, 2018, the Transient Accommodations Tax (TAT) rate was increased by 1 per cent and is scheduled to be in effect until sunset on December 31, 2030. It’s important to note that similar rate increases in 2009 and 2010 were made permanent.
The Hawaii Transient Accommodation tax is now 10.25 percent. Add Hawaii General Excise tax with an effective tax rate of 4.16 percent and the total is 14.41 percent tax on all hotels, vacation rentals and timeshares, plus an extra 4.712% for locations on Oahu and an additional 4.16% for neighbor islands. These taxes are on gross receipts (revenue). Therefore, there are no deductions — these taxes are paid off the top, not the bottom line.
Big Island 14.41%
Kohala Coast 14.41%
Syed Sarmad, Principal Broker for Advantage Vacation