The Kauai County transient accommodations tax is a 3% county tax on the gross rental proceeds from any short-term lodging on the island, authorized by Kauai County Code § 5-4.1. It is charged on top of Hawaii’s state transient accommodations tax, not instead of it, and the payment goes directly to the county’s Department of Finance rather than to the state.1County of Kauai. Transient Accommodations Tax
Which Rentals the Tax Applies To
The county tax tracks the state definition. Under Hawaii Revised Statutes § 237D-1, a transient accommodation is any room, apartment, suite, single-family dwelling, or similar space furnished to someone for less than 180 consecutive days per stay. That sweeps in hotels, motels, resorts, condominiums, cooperative apartments, vacation rentals in residential neighborhoods, and even vehicles advertised with sleeping accommodations.2Hawaii.gov. Chapter 237D, HRS, Transient Accommodations Tax
If a guest stays in the same unit for 180 consecutive days or longer without a break, that stay falls outside the transient category and the county tax does not apply to it. The county’s own shorthand: if you pay the state TAT on a rental, you owe the Kauai County TAT on it too.1County of Kauai. Transient Accommodations Tax
How the 3% Is Calculated
The tax is 3% of your gross rental proceeds for the reporting period. Gross rental proceeds means the total compensation you receive for furnishing the accommodation, in cash, goods, or services, with no deduction for operating costs like mortgage interest, labor, or supplies.2Hawaii.gov. Chapter 237D, HRS, Transient Accommodations Tax
What counts toward that total is where operators slip. Mandatory charges tied to the stay, such as cleaning fees, management fees, and resort fees, are part of gross rental proceeds even when billed as separate line items. Guest amenity charges like meals, phone calls, and laundry are excluded. General excise tax and transient accommodations tax that you visibly pass on to the guest as a separate charge are also excluded from the base.3Hawaii.gov. An Introduction to the Transient Accommodations Tax
A quick example: $5,000 in room charges plus $300 in mandatory cleaning fees gives you $5,300 in taxable gross rental proceeds, and the county tax owed is $159. Separately billed GET and TAT amounts passed through to the guest stay out of that figure.
How It Stacks With State TAT and GET
The 3% county tax is one of three overlapping obligations on Kauai rental income:
- State transient accommodations tax at 10.25% on gross rental proceeds through December 31, 2025, rising to 11% on January 1, 2026 under 2025 legislation.4Justia Law. Hawaii Revised Statutes Title 14 Chapter 237D-2 – Imposition and Rates
- General excise tax at 4.5% in Kauai County (the 4% state rate plus a 0.5% county surcharge effective through 2030), with a maximum pass-on rate of 4.712% if you bill it to the guest.5Department of Taxation. General Excise Tax (GET) Information
- Kauai County transient accommodations tax at 3%, paid separately to the county.
Added together, the state and local tax load on short-term rental income in Kauai sits around 18.5% before federal income taxes. State TAT and GET go to the Hawaii Department of Taxation; the county 3% goes to Kauai’s Department of Finance in a separate transaction.1County of Kauai. Transient Accommodations Tax
How to File and Pay
You do not file a separate county return. Kauai’s Director of Finance has determined that state TAT returns filed with the Department of Taxation (Forms TA-1 and TA-2) are deemed filed with the county as well.6County of Kaua’i. Kauai County Transient Accommodations Tax Announcement No. 2021-01
Payment is the piece that is easy to miss. The 3% must be submitted separately to the county through its online portal at tat.ehawaii.gov/tat/kauai. The county does not accept walk-in or mail-in payments. The portal takes electronic checks (ACH) at no convenience fee, and credit or debit cards with a convenience fee. You will need to include your Hawaii TAT identification number on the payment so the county can credit your account.6County of Kaua’i. Kauai County Transient Accommodations Tax Announcement No. 2021-01
Due Dates and Late Penalties
County payments follow the same filing frequency and due dates as your state TAT filings:
- Monthly filers: on or before the 20th day of the following month.
- Quarterly filers: on or before the 20th day following the close of the quarter.
- Annual reconciliation: the 20th day of the fourth month of the year, for the prior calendar year.
If the 20th falls on a weekend or legal holiday, the deadline moves to the next business day.7County of Kauai Transient Accommodations Tax Payments. Help Center
Late payments draw penalties and interest. The county’s Director of Finance can assess unpaid tax, interest, and penalties under the county code, which generally mirrors the state TAT penalty and interest structure.1County of Kauai. Transient Accommodations Tax Filing your state TAT return on time does not cover the county side. If you forget to submit the separate 3% payment to Kauai, the county will still assess its own late penalties against you.