Property Owners With Investment Properties | GET And TAT Changes For 2020

In this series of “Property Owners With Investment Properties,” we are discussing Hawaii General Excise and Transient Tax Changes for 2020. 

The state of Hawaii requires all homeowners to report taxes if you are renting your home. The amount varies by island, and the type of tax changes depending on the length of your lease.

Application for a tax license can be obtained online by visiting: Hawaii Tax Online, Register for a new business, and complete the BB1- Basic Business Application Form. 

General Excise Tax is required for all rentals, whether you are renting daily, weekly, monthly, or annually. 

Transient Tax is required all rentals less than 180 days (6 months). 

Hawaii state requires monthly, quarterly, or annually. The frequency of filing will depend on your annual revenue total.

If you own multiple properties, all taxes can be reported on the same tax license as long as the rental income is being issued to the name or company on the license.  

Tax Breakdown by Island

Oahu

• General Excise Tax: 4.712%
• Transient Accommodations Tax: 10.25%

Maui/Lanai

• General Excise Tax: 4.166%
• Transient Accommodations Tax: 10.25%

Kauai

• General Excise Tax: 4.712%
• Transient Accommodations Tax: 10.25%

Big Island/Hawaii

• General Excise Tax: 4.712%
• Transient Accommodations Tax: 10.25%

All of Hawaii Life’s exclusively managed properties benefit from the accounting services provided by Hawaii Life. Please contact Kahea@Hawaiilife.com for more information. 

Disclosure, Hawaii Life is not a professional CPA. Please seek professional guidance for further questions.