Maui Vacation Rental (Transient Accommodations) FAQ's

Maui's short-term rental landscape has changed more in the last nine months than in the previous two decades, and it continues to evolve.

The County Council passed Bill 9 (Ordinance 5909) in December 2025, launching the largest short-term rental phase-out in Hawaiʻi's history. Under Bill 9, more than 7,000 apartment-zoned units that have operated as legal vacation rentals must cease short-term rental use by January 1, 2029 in West Maui and January 1, 2031 in the rest of the county. The legislation's goal is to convert these units into long-term, affordable housing for Maui residents.

In the wake of the ensuing litigation, the County Council passed Bill 88 (Ordinance 6008) in June 2026 — a companion measure that tasks the Planning Department with creating new hotel zoning categories. These categories could potentially allow a significant number of the affected units to apply for rezoning from Apartment districts (A-1 and A-2) to the new Hotel districts (H-3 and H-4).

Amid concerns about how Bill 88 would work in practice, the County Council began deliberating on resolutions to rezone properties unlikely to translate into affordable housing.

Resolutions 26-110 and 26-111, centered on leasehold and hotel-like apartment-district properties, have since advanced to the Planning Commission for review, scheduled for September 4, 2026.

Resolutions 26-129 and 26-130 examine properties in the Sea Level Rise Exposure Area for potential rezoning. Proponents argue these properties are unlikely to convert to affordable housing given the rising costs associated with sea level rise — for example, seawall maintenance, insurance, and storm damage.  Opponents argue this defeats the original intent of Bill 9.  

What's New and What Continues to Evolve?

  • The County Council passed Bill 9 (Ordinance 5909) in December 2025, launching the largest short-term rental phase-out in Hawaii's history.  With the passage of Bill 9, over 7000 apartment-zoned properties that have operated as legal vacation rentals would phase out short-term rentals by Jan. 1, 2029, in West Maui and Jan. 1, 2031, in the rest of the county
  • Two lawsuits challenge Bill 9's constitutionality; no court ruling had been issued as of this update
  • A companion measure Bill 88 (Ordinance) created new H-3/H-4 hotel zoning categories that could allow a portion of affected units to continue operating; this is still moving through Planning Commission and Council review.
  • The State TAT rose from 10.25% to 11% on January 1, 2026, funding a new environmental “Green Fee.”
  • 2026-2027 Property Taxes raised taxes for certain classifications and tiers of value (View How Maui County Property Tax Rates have changed over the last decade)

Maui Short Term Rental FAQs

1. What is a Transient Vacation Rental (TVR) or Short Term Rental (STR)?
Per Maui County's website, a TVR (short-term or vacation rental) is any rental of a housing unit for less than 180 days.   The Maui County Code Chapter 19.37 prohibits transient vacation rentals outside of the hotel district

2. What if the property I'm considering does not fall under Maui County's Code's Hotel District?  Can I still rent it short-term as a TVR?
Per the Maui County TVR FAQ webpage: "an estimated 16,000-plus TVRs may operate legally in the County, many in multi-unit buildings, along with several hundred single-family units. They operate legally because they are in an approved zoning district (hotel, business, historic, etc). Those that are not in approved districts and are operating legally, have applied for and received a “conditional permit” that is required to conduct a vacation rental business in a residential, rural or agricultural zoned district."

Per the current county code (County Code Chapter 19.12.20 section G), TVRs of condominiums are permitted in apartment zoning (A-1 and A-2) if they meet the following criteria:

1. The building or structure received a building permit, special management area use permit, or planned development approval that was lawfully issued by and was valid, or is otherwise confirmed to have been lawfully existing, on April 20, 1989.
2. Transient vacation rental use was conducted in any lawfully existing dwelling unit within the building or structure prior to September 24, 2020 as determined by real property tax class or payment of general excise tax and transient accommodations tax.
3. The property owner or operator holds general excise tax and transient accommodations tax licenses and is current in payment of State and County taxes, fines, or penalties assessed in relation to the transient vacation rental.
4. If a building or structure is reconstructed, renovated, or expanded, transient vacation rental use is limited to the building envelope and number of bedrooms that can be confirmed as approved or lawfully existing on April 20, 1989.
5. Advertisements for transient vacation rental use must include the subject property's registration number, which is the subject property's tax map key number, without punctuation marks.

However, it should be noted that with the passage of Bill 9, these Apartment Zoned rentals must cease short-term rentals as of January 1, 2029 in West Maui and January 1, 2031 in the rest of Maui County.

3.  Can the zoning of an Apartment Zoned Property Change? 
Yes, it is possible that during the Phase Out Period that a complex may apply for and be granted a new H3 or H-4 zoning per Bill 88.  It is also possible that the County Council/Planning Commission may rezone a property.  It is important to verify the current zoning of a property and review the County Council's current resolutions at the time of purchase or sale.  Sellers should consult with their AOAO with regard to their stance regarding application for rezoning.

4.  Can Homes be rented Short Term?
Per Maui County's own FAQs: "Hotel districts are intended for short-term rentals. Residential districts are intended to provide for long-term housing for our residents. Agricultural Districts are intended for farm uses."  

For a single-family and/or ohana home in the Apartment, Residential and Agricultural Districts, if an exemption is not in place for the subdivision, an owner would have to apply for and gain approval for one of the following in order to use the property as a TVR:

  • B&B Permit (County Code Chapter 19.64), per the zoning ordinances, the owner/proprietor of a B&B shall be a resident of the County and shall reside, on a full-time basis, on the same lot being used as the bed and breakfast home.
  • Short Term Rental Home (STRH) Permit (County Code Chapter 19.65).  It should be noted that short-term rental home permits are subject to a variety of conditions; the owner must have owned the home for five years prior to the application, they are currently non-transferable, and the county has placed caps on the number allowed in each area.
    With the implementation of Bill 9, it should also be noted that the County Code and Rules and Legislation are subject to change.
  • Conditional Use Permit: Outside of the above zoning districts, there are short-term rentals that have received approval to operate with a Conditional Permit.  

5.  Can a condominium in a Planned Unit Development be legally rented Short Term?
Per the County Code Chapter 19.32.040, 

"Planned developments proposed on lands including more than one zoning district may permit a mixture of uses, densities and dwelling units; except that the total density and dwelling units of the planned development shall not exceed the combined allowable densities of each of the zones.

I.Transient vacation rentals are permitted in planned developments, except for developments that have been publicly funded, if:
1.The planned development received a planned development site plan approval that was lawfully issued by and valid on April 20, 1989, and the land is zoned A-1 or A-2 apartment district; or
2. The planned development meets all of the following:
     a. The planned development received final approval as provided in this chapter, and at least one unit in the planned development was operating as a vacation rental on or before April 20, 1981.
     b.The planned development is located on parcels with at least some residential district zoning.
     c.The planned development consists of only:
          i. Duplexes or multi-family dwelling units; or
          ii. A combination of single-family dwelling units and duplexes or multi-family dwelling units.
3. Existing transient vacation rentals may be reconstructed, renovated, or expanded if no new rooms or transient vacation rental units are added.

6. Can I manage a vacation rental or long-term rental property myself?  Can a relative or an employee manage the property for me?
An owner can manage their vacation rental or long-term rental themselves, but they must be on island to do so. If the owners are not on island, they do need to provide their renters with a Local Contact and/or managing agent, who resides on the island.  

Per Hawaii Landlord Tenant Code, Chapter 521, "An absentee landlord shall designate an agent to act on the landlord's behalf. The agent must reside on the same island as the rental unit."  Per the DCCA, the designated on-island agent must be licensed if engaging in any activity for which a real estate license is required or manages property for more than one owner.

7. Is a landlord obligated to collect General Excise Tax (GET) and Transient Accommodations Tax (TAT)?
Yes. The landlord must collect and pay applicable state and county GET and TAT per the Revised Statute 237. 

  • General Excise Tax (GET) — state tax on gross rental income, with a maximum visible pass-on rate of approximately 4.712%
  • State Transient Accommodations Tax (TAT) — 11%, effective January 1, 2026 (increased from 10.25%). The 0.75-point increase funds a new environmental “Green Fee” (Act 96, 2025) supporting shoreline restoration, wildfire prevention, and related programs.
  • Maui County TAT — an additional 3% levied by the county.

8. When advertising a vacation rental online, are there any requirements?
Yes...per Act 204 in 2016 and requirements relating to providing the registration, tax ID and provide the Local Contact information. In addition to helping to ensure owners of transient vacation rental properties collect and pay the appropriate taxes, it also helps consumers investigate whether an online rental advertisement is real or fraudulent and provides a contact in case of an emergency at the property.

Per the website for the Governor of the State of Hawaii, Act 204: "authorizes DOTAX to enforce civil penalties for operators and plan managers who fail to display the certificate of registration and registration ID numbers for transient accommodations and resort time share vacation plans. Authorizes DOTAX to issue citations for failure to provide the registration identification number or link to the number and the contact information of the local contact in an advertisement for a transient accommodation or resort time share vacation plan."

9. Does operating a TVR affect my property tax rate?  Does owning a condominium where TVR's occur impact my tax classification? 
Yes. Maui Property Taxes are assessed at the highest and best use for the entire property. If you own a condominium at a Hotel-Zoned property and do not rent it, you are taxed at the TVR rate.  

There are exemptions if you are an Owner Occupant ($300,000) and for Long Term Rentals ($200,000)

10.  How do I qualify for an Owner Occupant Tax Rate and Exemption?
Per Maui County's Website, to qualify for the exemption and tax rate:

a. The owner must occupy the Maui County home for which the exemption is being claimed for more than two hundred seventy (270) calendar days of each calendar year. b. Owner must not rent the entire premises for any portion of the year. c. Owner must file an income tax return as a resident of the State of Hawaii with a reported address in Maui County the year prior to the effective date of the exemption. Non-resident and part-year resident State of Hawaii income tax returns do not qualify for the home exemption. d. The property taxes must not be delinquent.

11. Do I have to file a claim for a Homeowner exemption every year?
No, the exemption will remain in effect unless there is a change in status, such as moving, death, renting the home, or no longer meeting the requirements from question 3 above. Owners have the responsibility to inform the Real Property Assessment Division within 30 days of any change in status. Failure to report a change in status, or facts will result in disqualification and a $200 penalty."

12.  How do I qualify for the Long Term Rental Rate and Exemption?
Per Maui County's Website, to qualify for the exemption and tax rate:

"It is a real property exemption of up to $200,000 on a parcel that is occupied as a long-term rental for twelve (12) consecutive months or longer to the same tenant. You must apply for the exemption by December 31 and attach a copy of the signed long-term lease agreement."  This also applies to condominiums regardless of zoning.

Maui County features an affordable long-term rental exemption of up to $400,000 for units meeting specific below-market rent caps tied to HUD guidelines.

BUYING OR SELLING IN THE BILL 9 ERA

Zoning has never mattered more when evaluating a Maui condominium. Two neighboring units in the same complex can carry very different outlooks depending on their zoning designation. Before buying, selling, or holding a vacation rental property, we recommend confirming:

  • The property's current zoning designation
  • Its specific Bill 9 phase-out deadline, if applicable
  • Whether it may be eligible for H-3/H-4 hotel rezoning under Bill 88, and the status of that process
  • AOAO/HOA rental restrictions, minimum-stay rules, and any association guidance
  • AOAO financials, monthly maintenance fees, and special assessments
  • Financing and insurance considerations, which can shift as a property's rental status changes

Each of these factors affects a property's income potential and resale profile differently — there is no single right answer for every owner, and the best path depends on individual goals and timeline.

HELPFUL RESOURCES:

Information in this post is taken from the Maui County website and the Maui County Municipal Code website. Landlord Tenant Code and Short Term Rentals/Taxation are addressed in chapters 237, 467, and 521 of the Hawaii Revised Statutes

This FAQ is provided for general informational purposes and reflects our research as of the date of this post. Regulations, tax rates, and litigation outcomes continue to evolve; please verify current requirements with Maui County, The Planning Department, the State of Hawai‘i Department of Taxation, and your own legal and tax advisors before relying on any information here.

Posted by Courtney M. Brown on

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