By Team Hawaii Real Estate
Few Hawaii searches mix opportunity and regulation as tightly as short-term rentals on Oahu. Honolulu limits where stays under 30 consecutive days are legal, and the state taxes those stays on top of that.
We at Team Hawaii Real Estate put together the published rules and market figures that matter before an investor writes an offer. Where sources conflict, or dates have slipped, we say so instead of guessing.
Key Takeaways
- City rule: Honolulu’s planning department says it enforces short-term rentals as stays under 30 consecutive days.
- Where legal: Short-term rentals are permitted only in resort-zoned areas and a couple of specific apartment-zoned areas.
- Taxes: Hawaii’s tax pages list a 4.5% general excise tax rate on Oahu, and rentals under 180 consecutive days need a TAT registration.
- Market context: Oahu’s condo median was $523,000 in September 2026, per the Honolulu Board of REALTORS.
Honolulu’s Short-Term Rental Rule and the 90-Day Question
Honolulu’s planning department defines short-term rentals as lodgings that provide guest accommodation for less than 30 consecutive days. Its website says it will continue to enforce the rule as less than 30 consecutive days across the board.
Where the Sources Disagree
- City guidance: The planning department page, modified in October 2026, cites Ordinance 22-7 and later amendments 24-14, 25-2, and 25-52 without mentioning a 90-day rule.
- Ordinance as passed: Lodgify and Hawaii Living both describe Ordinance 22-7 as raising the minimum to 90 days.
- Court ruling: Hawaii Public Radio reported in 2024 that a federal court ruled the city could not enforce the 90-day change.
We follow the city’s own 30-day statement and treat the 90-day figure as unsettled in our sources. Confirm the current rule with the planning department before you rely on either number.
Resort Zones, NUCs, and Registration
The city says short-term rentals are only permitted in resort-zoned areas and a couple of specific apartment-zoned areas. Each rental must be registered to be in compliance with the law.
What the City Page Says
- Registration: Applicants submit required information and fees through HNL Build, and the license is accessible there after approval.
- NUC eligibility: Certificates cover grandfathered rentals operating before October 22, 1986, and new NUCs are not being issued.
- Renewal deadline: NUC renewals ran September 1 to October 15 through HNL Build, and unapproved renewals expired automatically after October 15, 2026.
The city page does not state registration fee amounts, so ask the planning department for current fees. Hawaii Public Radio reported about 800 NUCs in 2024, so confirm the current count.
Taxes on an Oahu Short-Term Rental
Hawaii’s Department of Taxation lists a 4.5% general excise tax rate that includes a 0.5% county surcharge, and the county surcharge page lists a 4.712% maximum pass-on rate. Anyone renting a transient accommodation for less than 180 consecutive days needs a Transient Accommodations Tax registration.
Rates and Licenses
- Transient accommodations tax: A 2022 article lists a 10.25% state rate, and WDWInfo reports it rising to 11% on January 1, 2026, which no state page we read confirms.
- Honolulu County tax: Both articles list a 3% county transient accommodations tax.
- License fees: The state lists $5 for a TAT registration covering one to five units and $20 for a GET license, per pages updated in 2023.
Added together, the 11%, 3%, and 4.712% figures come to about 18.7%, by our own arithmetic. Confirm current rates with the Department of Taxation, since our TAT figure comes from secondary sources.
Market Backdrop and Pricing for Investors
Oahu’s condo median was $523,000 in September 2026, up 2.8% from $508,750, while the single-family median was $1,110,000, down 3.9%. Condo days on market were 41, and active condo inventory was 2,509, up 7.8%.
Entry Points and Competition
- Lower price tiers: The report says 1,196 condo listings, or 48% of active inventory, were priced at $500,000 and below.
- Above-asking sales: Condo sales above asking rose from 8% to 12% year over year.
- Contract activity: Condo sales under contract fell 28.6%, from 409 to 292.
None of our sources publish verified rental income for Oahu short-term rentals, so we are not quoting returns. Build your projections from registered comparable operators and confirm the property is eligible to rent before you price the purchase.
Disclosures, Enforcement, and State Law
Ordinance 22-6 requires an owner selling a property to provide a short-term rental disclosure form stating whether the property may legally be used for short-term rentals. Hawaii Living describes it as also calling for a permit, NUC, or registration number plus GET and TAT clearances.
Enforcement and State Authority
- State law: Hawaii Public Radio reported that a May 2024 state law lets counties regulate the location and duration of short-term rentals.
- Fines: The same report quoted fines of $10,000 a day for the worst offenders.
- Software: The planning department began a six-month process to adopt software targeting the most egregious offenders in 2024.
These items come from a May 2024 article, so check for newer enforcement news. Association rules add another layer, so review the declaration, bylaws, and house rules for any condo you consider.
FAQs
Is an Oahu short-term rental investment property legal outside resort areas?
Honolulu’s planning department says short-term rentals are only permitted in resort-zoned areas and a couple of specific apartment-zoned areas, and it enforces the under-30-day definition across the board. Properties with a grandfathered NUC are the exception, and new NUCs are not being issued. Confirm any address with the planning department.
What taxes apply to a short-term rental on Oahu?
The state lists a 4.5% GET rate that includes a county surcharge, and secondary sources list a 3% Honolulu transient tax and a state TAT of 10.25%, reportedly rising to 11% in 2026. Rentals under 180 consecutive days need a TAT registration. Verify current rates with the Department of Taxation.
Does the 90-day rule apply to my purchase?
Sources conflict. Ordinance 22-7 is described as raising the minimum to 90 days, but a federal court ruled the city could not enforce that change, and the city’s own page cites 30 days. Ask an attorney and the planning department which rule applies when you buy.
Reach Out to Us at Team Hawaii Real Estate
Message us at Team Hawaii Real Estate to talk through Oahu property options with the rules above in mind.
