By Benjamin Finnerty (S), REALTOR® (RS-83812) with Keller Williams Realty Maui · Kīhei, Maui · 808-481-9748

Quick Answer: Rent from a long-term Maui rental (180 or more consecutive days) is not subject to Hawaiʻi’s transient accommodations tax, but it is subject to general excise tax (GET). As of 2026, the GET rate on Maui is 4.5% of gross rent: the 4% state rate plus Maui County’s 0.5% surcharge, in effect from January 1, 2024 through 2030.

I’m Benjamin Finnerty, a REALTOR® in Kīhei with Keller Williams Realty Maui. With Bill 9 phasing out vacation rentals in Maui’s apartment districts, more condo owners are asking me what changes if they switch to long-term tenants. The short answer on taxes: GET on rental income doesn’t go away. Here’s how it works, what the numbers look like and what to set up.

Do Maui Landlords Pay GET on Long-Term Rent?

Yes. Hawaiʻi’s Department of Taxation says GET applies to rental income regardless of the rental’s length, and it’s charged on gross rent, before expenses like HOA dues, mortgage interest or repairs, unless a specific exemption applies. Hiring a property manager doesn’t shift the obligation; the department says the owner remains responsible.

What does change at 180 days is the transient accommodations tax (TAT). A rental of 180 consecutive days or more isn’t a transient accommodation, so neither the state TAT nor the Maui County TAT applies.

How Much Tax Is Saved by Switching From Vacation Rental to Long-Term Rental?

The tax rate on rent drops sharply, though rents themselves are usually different too. Here is how the 2026 rates compare on Maui:

Tax (as of 2026)	Short-term rental (under 180 days)	Long-term rental (180+ days)
General excise tax (state 4% + Maui 0.5%)	4.5%	4.5%
State transient accommodations tax	11%	None
Maui County TAT	3%	None
Total on gross rent	18.5%	4.5%

The state TAT rose to 11% on January 1, 2026, under Act 96 (2025), the “green fee.” The 3% Maui County TAT has been in effect since November 1, 2021. I covered the short-term side in more detail in Maui vacation rental taxes in 2026.

How Do I Calculate GET on a Maui Rental?

Multiply gross rent by 4.5%. Here’s a simple illustration (example figures, not a rent estimate):

• Monthly rent: $3,500
• Annual gross rent: $42,000
• GET at 4.5%: $1,890 for the year

Landlords may choose to visibly pass GET on to the tenant, but they don’t have to. If you do, the amount you collect is also part of your taxable gross income, which is why the maximum pass-on rate on Maui is 4.712%, not 4.5%. Whether and how to show it should be spelled out in the lease.

What GET Forms and Deadlines Do Maui Landlords Need to Know?

You’ll need a GET license, then periodic and annual returns:

• License: Register through Hawaiʻi Tax Online or Form BB-1. There’s a one-time $20 fee.
• Periodic returns (Form G-45): Monthly if your annual GET liability is over $4,000, quarterly if it’s $4,000 or less, and semiannually if it’s $2,000 or less. Each is due the 20th day of the month after the period ends. In the example above, $1,890 a year would qualify for semiannual filing.
• Annual return (Form G-49): Due the 20th day of the fourth month after your tax year ends, which is April 20 for calendar-year filers.

The Department of Taxation lists penalties of 5% per month (up to 25%) for not filing and 20% for not paying within 60 days of a return’s due date, plus interest. Rental income also goes on your Hawaiʻi income tax return: Form N-11 for residents and N-15 for nonresidents and part-year residents.

Does Maui’s Property Tax Change for a Long-Term Rental?

It can, but the property tax rule is stricter than the 180-day tax line. Maui’s Long-Term Rental real property tax class for fiscal year 2027 (from July 1, 2026) is $2.90 per $1,000 of net taxable value up to $1.5 million, compared with $13.00 per $1,000 in the lowest tier for the short-term rental class. To qualify, the County requires the same tenant to occupy the unit for 12 or more consecutive months and a long-term rental exemption to be granted. Check the County’s Real Property Assessment Division for current deadlines.

My Take: What I’m Telling Owners Thinking About a Long-Term Switch

When an owner on the Minatoya List asks me whether to sell now or wait for the rezoning votes, I start with their reasons for considering a change. Then I walk them through the potential long-term results of both scenarios: the unit being rezoned and keeping vacation rental use, or losing vacation rental rights. Based on their goals as owners, I help them come to the right decision for them.

For owners who decide to switch to long-term tenants, the transition itself is, for the most part, fairly simple. The one thing I tell them to pay attention to is the property’s assessed tax use and the dates when that changes, because there’s a significant difference between the tax basis for a long-term rental and a short-term rental.

For owners who would keep the unit and switch to long-term tenants, taxes are one piece of that comparison. Gross long-term rent is often lower than gross vacation rental income, but the tax rate on it is far lower (4.5% instead of 18.5%), and there’s no TAT filing. Put both scenarios side by side with real numbers: rent, GET, property tax class, HOA dues, insurance and management. HUD’s fair market rents, which I covered in Maui fair market rents for 2027, are one reference point for long-term rent. For the bigger regulatory picture, see how Bill 9 is reshaping Maui’s condo market.

Whatever you decide, get the GET license set up before the first rent check, and calendar the filing dates. Penalties add up quickly.

This is general information, not tax or legal advice. Confirm with a CPA or Hawaiʻi attorney.

FAQ

Is long-term rental income taxable in Hawaiʻi?
Yes. Rent is subject to GET (4.5% on Maui in 2026) and is reported on your Hawaiʻi income tax return.

Do I pay TAT on a 6-month rental?
A rental of 180 or more consecutive days isn’t subject to TAT. Under 180 days, both TAT and GET apply.

Can I charge my tenant GET?
You may visibly pass it on, up to 4.712% on Maui, but you’re not required to. Whatever you collect is part of your taxable gross income.

When is the annual GET return due?
Form G-49 is due the 20th day of the fourth month after the tax year ends, or April 20 for calendar-year filers.

Ask Benjamin

If you’re an owner weighing a sale against a long-term rental, I’m Benjamin Finnerty, and I’m happy to pull recent sales and rental comparisons for your building so you can see both options with real numbers. Call or text 808-481-9748 or email benjamin@the808team.com.

Sources: Hawaiʻi Department of Taxation (Renting Residential Real Property; county surcharge information; Announcement 2023-05; Form G-45 instructions; Tax Facts 2017-2); County of Maui (Maui County TAT; FY2027 real property tax rate resolution); Hawaiʻi State Legislature (Act 96, SLH 2025); Maui Now (Jan. 19, 2024; Dec. 26, 2025); Hawaii Tribune-Herald (Jan. 1, 2026).