STR Rule Watch

Short-Term Rental Laws in Kihei, HI (2026)

RestrictedRestricted

Kihei is unincorporated and governed by Maui County, where short-term rentals are legal only in hotel districts, in grandfathered 'Minatoya List' apartment-district condos, or with a capped Short-Term Rental Home (STRH) permit. Bill 9, signed December 15, 2025, phases out all transient vacation rentals in apartment districts — South Maui (Kihei) units must stop STR use by January 1, 2031 — while Bill 88 (June 2026) opened a case-by-case rezoning exemption path into new H-3/H-4 hotel districts. STRH permits in the Kihei-Makena community plan area are capped at 100, and a county moratorium on new transient accommodations (Ordinance 5316) is still referenced on the county's application portal.

✓ Last verified July 21, 2026 · 15 official sources

Reviewed by the STR Rule Watch research team against 15 official sources. How we verify data

Kihei STR rules at a glance

Key short-term rental facts for Kihei
Legal statusRestricted
Permit requiredYes
Permit nameShort-Term Rental Home (STRH) Permit
Permit fee$1,916
Owner occupancy requiredNo
Primary residence onlyNo
Total occupancy taxes~18.5% of gross revenue
InsuranceLiability insurance is required for STRH permit holders: renewal applications must include all Certificates of Insurance issued since the last approval. No specific minimum coverage amount is stated in the county application materials reviewed.
EnforcementThe Maui County Planning Department enforces STR rules, has funded internet monitoring of listings to detect illegal operators, and requires all STR advertising to include the permit number.
Current rules effective2025-12-15

What will guests pay in taxes on a Kihei stay?

Itemized occupancy taxes for Kihei, HI — enter your nightly rate to see the real cost breakdown.

Kihei occupancy tax calculator

Gross rent$450.00
Hawaii General Excise Tax (GET) + Maui County surcharge (4.5%)· host remits$20.25
Hawaii Transient Accommodations Tax (TAT) (11%)· host remits$49.50
Maui County Transient Accommodations Tax (MCTAT) (3%)· host remits$13.50
Total tax (18.5%)$83.25
Guest pays$533.25

Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.

Permits & licensing

Kihei requires Short-Term Rental Home (STRH) Permit to operate a short-term rental — the fee is $1,916.

FY 2027 budget Appendix B (fiscal year July 1, 2026 - June 30, 2027) sets the new STRH permit application fee at $1,916 (up from $1,676 in FY 2026), plus an additional $2,290 if a public hearing is required; renewal application fee is $1,566. Fees are set annually in the County budget ordinance. Note: units lawfully operating as transient vacation rentals in hotel districts or as grandfathered Minatoya List apartment-district condos do not need an STRH permit (the STRH permit applies to homes in residential/rural/agricultural areas); Bed & Breakfast permits (owner-occupied) are a separate permit type with similar fees.

Zoning & location rules

Maui County allows transient vacation rentals (any rental under 180 days) as of right in hotel districts; Kihei condos in apartment districts on the grandfathered Minatoya List may operate until the Bill 9 phase-out deadline of January 1, 2031 for South Maui (January 1, 2029 in West Maui). Bill 88 (passed June 19, 2026) created H-3 and H-4 hotel district classifications allowing Minatoya properties to seek individual rezoning to keep operating. Homes in residential, rural, and agricultural districts need an STRH permit, capped at 100 for the Kihei-Makena community plan area with no more than 5 in the Maui Meadows subdivision; the county's MAPPS application portal also cites Ordinance 5316's moratorium on new transient accommodations. Owner-occupied B&B permits and conditional permits are alternate paths.

Taxes

TaxRateWho collects
Hawaii General Excise Tax (GET) + Maui County surcharge4% state GET plus 0.5% Maui County surcharge effective January 1, 2024 through December 31, 2030; maximum visible pass-on rate in Maui County is 4.712%. Operators must hold a GE license and remit to the Hawaii Department of Taxation.4.5%host
Hawaii Transient Accommodations Tax (TAT)Act 96 (SLH 2025, the 'Green Fee') raised the state TAT from 10.25% to 11.00% effective January 1, 2026. No sunset/end date is stated in Act 96 per DOTAX Announcement 2025-03 and the Form TA-2 instructions. Applies to rentals under 180 days; operators must register with the state (TA license) and remit.11%host
Maui County Transient Accommodations Tax (MCTAT)Established by Ordinance No. 5273 (passed October 1, 2021; MCTAT effective November 1, 2021). Operators pay 3% directly to the County of Maui on the same base as the state TAT; may be passed on to guests. Hawaii has no statewide platform tax-collection mandate, so hosts are responsible for GET, TAT, and MCTAT registration and remittance.3%host

Enforcement & penalties

The Maui County Planning Department enforces STR rules, has funded internet monitoring of listings to detect illegal operators, and requires all STR advertising to include the permit number. Operating without a permit is unlawful, and applying for a permit does not legalize ongoing unpermitted operation; misrepresentations on applications can trigger denial/revocation and a multi-year reapplication ban. Fines were sharply increased effective December 27, 2019 via a Charter amendment (Section 13-10) and Ordinance No. 5001 (MCC 19.530.030).

Illegal short-term rental operation is subject to an initial fine of up to $20,000 plus up to $10,000 for each day the operation continues (effective December 27, 2019; previously $1,000 initial and $1,000/day). Note: an older county FAQ page still cites the superseded $1,000 figures.

⚠️ HOA/condo rules may prohibit STRs regardless of city law.

Getting legal in Kihei: the playbook

Generated from this market's verified rules — each step traces to the sources at the bottom of this page.

  1. 1

    Verify your zoning

    Location rules apply: Maui County allows transient vacation rentals (any rental under 180 days) as of right in hotel districts; Kihei condos in apartment districts on the grandfathered Minatoya List may operate until the Bill 9 phase-out deadline of January 1, 2031 for South Maui (January 1, 2029 in West Maui). Bill 88 (passed June 19, 2026) created H-3 and H-4 hotel district classifications allowing Minatoya properties to seek individual rezoning to keep operating. Confirm your parcel's zoning with the city before applying — the full zoning rules are detailed above.

  2. 2

    Check the covenant layer

    HOA/condo rules may prohibit STRs regardless of city law.

  3. 3

    Apply for the Short-Term Rental Home (STRH) Permit

    Budget $1,916. FY 2027 budget Appendix B (fiscal year July 1, 2026 - June 30, 2027) sets the new STRH permit application fee at $1,916 (up from $1,676 in FY 2026), plus an additional $2,290 if a public hearing is required; renewal application fee is $1,566. Apply through the city — the official application page is linked in the sources below.

  4. 4

    Line up required insurance

    Liability insurance is required for STRH permit holders: renewal applications must include all Certificates of Insurance issued since the last approval. No specific minimum coverage amount is stated in the county application materials reviewed.

  5. 5

    Set up tax collection & remittance

    Platforms don't collect everything here: Hawaii General Excise Tax (GET) + Maui County surcharge (4.5%), Hawaii Transient Accommodations Tax (TAT) (11%), Maui County Transient Accommodations Tax (MCTAT) (3%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.

  6. 6

    Know the cost of getting it wrong

    Illegal short-term rental operation is subject to an initial fine of up to $20,000 plus up to $10,000 for each day the operation continues (effective December 27, 2019; previously $1,000 initial and $1,000/day). Note: an older county FAQ page still cites the superseded $1,000 figures. Full enforcement details and penalties are covered above.

Recent rule changes in Kihei

  1. July 1, 2026

    FY 2027 fee schedule raises STRH permit fees

    The county's FY 2027 budget Appendix B (effective July 1, 2026) raised the STRH new permit application fee from $1,676 to $1,916, the public hearing surcharge from $2,004 to $2,290, and the renewal fee from $1,370 to $1,566.

    Official source →

  2. June 19, 2026material

    Bill 88 creates H-3/H-4 hotel districts as exemption path

    The council approved Bill 88 establishing two new hotel zoning classifications (H-3 and H-4) that Minatoya List condos can seek via individual rezoning (planning commission review plus council approval) to continue vacation rental use despite the Bill 9 phase-out.

    Official source →

  3. January 1, 2026material

    State TAT increased to 11% (Act 96 'Green Fee')

    Act 96 (SLH 2025) raised the Hawaii transient accommodations tax from 10.25% to 11.00% effective January 1, 2026 through December 31, 2030, with the increase funding environmental programs.

    Official source →

  4. December 15, 2025critical

    Bill 9 signed: phase-out of vacation rentals in apartment districts

    Mayor Richard Bissen signed Bill 9 after a 5-3 council vote, ending transient vacation rental use for roughly 6,000-7,000 grandfathered 'Minatoya List' apartment-district condos. West Maui units must convert by January 1, 2029; South Maui (Kihei) and other areas by January 1, 2031. B&Bs and timeshares are unaffected.

    Official source →

  5. January 1, 2024

    Maui County 0.5% GET surcharge takes effect

    Maui County's 0.5% surcharge on the state general excise tax took effect January 1, 2024 (through December 31, 2030), bringing combined GET in Maui County to 4.5% (maximum pass-on 4.712%).

    Official source →

Frequently asked questions

›Is Airbnb legal in Kihei?

Airbnb is legal in Kihei, HI, but with significant restrictions — check the zoning and eligibility rules on this page before listing. Always confirm current requirements with the city before operating.

›Do I need a permit for a short-term rental in Kihei?

Yes. Kihei requires a Short-Term Rental Home (STRH) Permit to operate a short-term rental, which costs $1,916. Always confirm current requirements with the city before operating.

›How much does a Kihei short-term rental permit cost?

The Short-Term Rental Home (STRH) Permit costs $1,916. FY 2027 budget Appendix B (fiscal year July 1, 2026 - June 30, 2027) sets the new STRH permit application fee at $1,916 (up from $1,676 in FY 2026), plus an additional $2,290 if a public hearing is required; renewal application fee is $1,566. Fees are set annually in the County budget ordinance. Note: units lawfully operating as transient vacation rentals in hotel districts or as grandfathered Minatoya List apartment-district condos do not need an STRH permit (the STRH permit applies to homes in residential/rural/agricultural areas); Bed & Breakfast permits (owner-occupied) are a separate permit type with similar fees.

›Can I Airbnb a non-primary residence in Kihei?

Yes — Kihei does not limit short-term rentals to primary residences. Zoning and other restrictions may still apply. Always confirm current requirements with the city before operating.

›What taxes do short-term rental hosts pay in Kihei?

Hosts in Kihei are subject to: Hawaii General Excise Tax (GET) + Maui County surcharge (4.5%), Hawaii Transient Accommodations Tax (TAT) (11%), Maui County Transient Accommodations Tax (MCTAT) (3%) — roughly 18.5% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.

›Do I need insurance to run a short-term rental in Kihei?

Liability insurance is required for STRH permit holders: renewal applications must include all Certificates of Insurance issued since the last approval. No specific minimum coverage amount is stated in the county application materials reviewed. Always confirm current requirements with the city before operating.

›Does Airbnb collect taxes automatically in Kihei?

No — in Kihei hosts are responsible for registering, collecting, and remitting the listed occupancy taxes themselves. Always confirm current requirements with the city before operating.

›What happens if I operate a short-term rental illegally in Kihei?

Illegal short-term rental operation is subject to an initial fine of up to $20,000 plus up to $10,000 for each day the operation continues (effective December 27, 2019; previously $1,000 initial and $1,000/day). Note: an older county FAQ page still cites the superseded $1,000 figures. See the enforcement section on this page for full details.

›When did Kihei's current short-term rental rules take effect?

The current ordinance took effect on December 15, 2025. See the change timeline on this page for amendments since, and the sources section for the official text.

Kihei's STR rules changed 4 times recently.

Get an email the moment Kihei changes its short-term rental rules — plus renewal reminders before your permit expires.

Watch Kihei for changes →

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Sources

This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Kihei and a qualified professional before operating.

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