Trying to make sense of TAT, GET, and Kauaʻi County TAT for a Hanalei rental? You are not alone. These taxes affect your nightly rate, your bottom line, and how you invoice guests. In this short guide, you will learn exactly which taxes apply in Hanalei, how much they add up to, what changes in 2026, and how to stay compliant. Let’s dive in.
Taxes that apply in Hanalei
State TAT
The state Transient Accommodations Tax applies to stays under 180 days. The rate is 10.25% through 2025 and increases to 11% on January 1, 2026, under Act 96, often called the Green Fee. See the confirmed change in this statewide update on the TAT increase effective January 1, 2026.
Kauaʻi County TAT (KTAT)
Kauaʻi adds a separate 3% County Transient Accommodations Tax. You remit this to the County Director of Finance, separate from your state returns. Details are on the Kauaʻi County Transient Accommodations Tax program.
General Excise Tax (GET) and surcharge
Hawaiʻi’s GET applies to rental income. On Kauaʻi, the statewide 4% GET combines with a 0.5% county surcharge for an effective 4.5% where the retail rate applies. See the GET overview and the county surcharge page.
How TAT and GET interact
If you itemize TAT as a separate line on the guest invoice, that visible TAT amount is not included in your GET tax base. The state provides examples and rules in its Tax Facts guide. Review the TAT and visible pass on rules before setting up invoices.
How the numbers add up
Assume a $300 nightly rate and that you itemize each tax.
Before Jan 1, 2026
- State TAT 10.25%: $30.75
- Kauaʻi County TAT 3%: $9.00
- GET 4.5%: $13.50
- Total taxes collected: $53.25, about 17.75% of the nightly rate
On or after Jan 1, 2026
- State TAT 11%: $33.00
- Kauaʻi County TAT 3%: $9.00
- GET 4.5%: $13.50
- Total taxes collected: $55.50, about 18.5% of the nightly rate
Note that cleaning, parking, and other fees may also be taxable. Always confirm what you include in your taxable base.
Where Hanalei rentals are legal
Visitor Destination Areas
Kauaʻi allows short term rentals in designated Visitor Destination Areas. Most of Princeville is in a VDA. Much of Hanalei town is not. Check zoning and policies on the Kauaʻi Planning Department’s Transient Vacation Rentals page.
Non conforming TVRs in Hanalei
Outside VDAs, short term rentals generally require a grandfathered Non Conforming Use Certificate or a homestay permit. Many Hanalei and Hā‘ena properties operate under these legacy approvals, which must be renewed annually under county rules.
Verify before you buy or book
Kauaʻi Planning publishes a public list of approved TVRs and homestays by TMK. Verify a property’s status and review renewal history before you rely on rental income.
Compliance checklist for owners
- Register for GET with the Hawaiʻi Department of Taxation to obtain your Hawaiʻi Tax ID. See the state’s GET overview.
- Add a TAT account to your Hawaiʻi Tax ID and print your TAT certificate. Display the certificate in the unit or provide a notice on where it can be inspected. The Tax Facts guide explains forms TA 1 and TA 2, plus display and advertising rules in the TAT overview.
- Open a Kauaʻi County TAT account and remit KTAT payments to the county. Start here: Kauaʻi County Transient Accommodations Tax program.
- If outside a VDA, confirm you have a valid Non Conforming Use Certificate or homestay permit and track annual renewals via the county Planning page.
- Itemize taxes on guest invoices. Show state TAT, County TAT, and GET as separate lines to follow visible pass on rules.
- Include required registration or permit numbers and a local on island contact in your unit materials and, when required, in your online listing.
Filing basics and deadlines
Your filing frequency depends on tax liability. State TAT uses periodic TA 1 returns with an annual TA 2 reconciliation. GET uses G 45 periodic and G 49 annual returns. KTAT is paid to the county, typically on timelines that mirror state due dates, but as a separate payment. The state’s Tax Facts explain penalties for late filing and advertising or display violations in the TAT overview. County KTAT payment procedures are outlined on the Kauaʻi County TAT page.
Tips to price and present taxes
- Be transparent. Itemize TAT, KTAT, and GET to avoid confusion at checkout.
- Review all fees. Cleaning and other charges may be taxable, which affects totals.
- Plan for 2026. Update rates and guest messaging to reflect the state TAT moving to 11% on January 1, 2026.
- Keep records. Save permits, renewal letters, and filed returns to support due diligence for future buyers.
Local help when you need it
If you are evaluating a Hanalei purchase, want to verify a property’s legal status, or need a pricing strategy that reflects local taxes, reach out to Michael Ambrose. You will get clear guidance, responsive service, and a plan tailored to your goals on Kauaʻi’s North Shore.
FAQs
What taxes do guests pay on a Hanalei rental?
- Guests typically pay state TAT, Kauaʻi County TAT, and GET, which total about 17.75% of the base rate through 2025 and about 18.5% starting January 1, 2026.
Is my Hanalei property allowed for short term rental?
- Only if it is in a Visitor Destination Area or holds a valid grandfathered TVR Non Conforming Use Certificate or homestay permit published by Kauaʻi Planning.
Do I need to display certificates and a local contact?
- Yes, state rules require the TAT certificate to be displayed or available for inspection and listings must show required registration or permit details with a local on island contact.
How does the 2026 TAT increase affect pricing?
- The state TAT rises to 11%, which increases the taxes you collect from guests if you itemize TAT or reduces your net if you choose to absorb it.
How should I show taxes on my invoice?
- List state TAT, Kauaʻi County TAT, and GET as separate line items, which follows visible pass on rules and helps guests understand their total.
