What do you need to pay if you rent out a unit in Hawaii? Price may vary from one caretaker or company to another but here we will show you the most common scenarios Long term rental (more than a 6-month rental) * Usually it is 10% on the gross rent * GE reporting can be done by the owner which is free online (if due to language difficulty, you can ask your manager to report and usually there is a fee associated with it) Short Term Rental: (less than 6-month including daily rental) * Hotel managing your unit it is likely 50% of the rent + some marketing cost (each hotel may be different) * 3rd party managing: usually 20-25% is charged on gross rent excluding the TAT and GET portion. * Cleaning fee is included in the gross rent and will need to pay GET * Transient Accommodation Tax and General Exercise Tax are to be paid Quarterly, Semiannually, or monthly depending on the gross income (usually self-reporting is free but if your managing agent files it will cost some service fee) If you have an accountant, he or she may also be able to help you with your reporting. * Some management agent or company can help you report those taxes but there might be service fee for it.
Real property classified as “Residential A” in the City and County of Honolulu is subject to the following tiered real property tax rate: $4.50 per $1,000 (.45%) applied to the net taxable value of the property up to $1,000,000; and $10.50 per $1,000 (1.05%) applied to the net taxable value of the property over $1,000,000 Value $1,300,000 .45% of $1,000,000 = $4,500 + 1.05% of $300,000 = $3,150 Total tax = $7,650 Residential real property falls within the Residential A classification if it is one of the following: Improved with no more than two single family dwelling units - with an assessed value of $1,000,000 or more; - does not have a home exemption; and - is zoned R-3.5, R-5, R-7.5, R-10 or R-20 or is dedicated for residential use. Vacant land - with an assessed value of $1,000,000 or more; and - zoned R-3.5, R-5, R-7.5, R-10 or R-20. A condominium unit - with an assessed value of $1,000,000 or more; and - does not have a home exemption. Claims for home exemption must be filed with the City and County Real Property Tax Office by September 30 before the tax year to which the home exemption applies. To be eligible for the exemption for the July 1, 2020 - June 30, 2021 year, a claim for home exemption must have been filed by September 30, 2019. Real property tax bills for the first half of the fiscal year July 1, 2020 - June 30, 2021 will be mailed to property owners on July 20, 2020. Payment will be due on August 20, 2020.