Maui Airbnb Laws: Permits, Phase-Out, Taxes, and Fines

Maui’s Airbnb laws make short-term rentals legal only in specific zones and under specific permits, tax the income at roughly 18.5 percent, raise property taxes several times over, and set hard deadlines in 2028 and 2030 that will shut down thousands of existing vacation rental units. Operating without the right permit can cost up to $20,000, plus daily fines for every day the listing stays up.

Where a Short-Term Rental Can Legally Operate

The Maui County Code sorts the island into zoning districts, and transient accommodations are allowed only in some of them. Hotel-zoned areas are the clearest case: short stays are an expected use, and most resort condos and hotels sit in these zones. Apartment districts allow some vacation rentals, but with conditions tied to the unit’s history and whether it appears on the Minatoya List.

Residential and agricultural districts prohibit short-term rentals by default. An owner in those areas can host transient guests only with a Short-Term Rental Home (STRH) permit under Chapter 19.65 or a Bed and Breakfast (B&B) permit under Chapter 19.64 of the Maui County Code.1Maui County Council. Bill 9 (2025) Overview Both permit types carry caps, waiting lists, and extensive application requirements, which puts most residential neighborhoods out of reach for new vacation rentals.

The Minatoya List, named for a 2001 county legal memo, is the inventory of apartment-zoned condo units that had already been renting to vacationers as of 1989 and were allowed to continue without a separate STRH or B&B permit. For more than two decades, these units made up a large share of Maui’s visitor accommodations outside hotels.

The 2028 and 2030 Phase-Out

In 2025, the Maui County Council passed Ordinance No. 5909, originally introduced as Bill 9, which sets fixed deadlines for shutting down Minatoya List vacation rentals. Units in West Maui must stop short-term rental operations after December 31, 2028. Units in South Maui and all other areas must stop after December 31, 2030.2County of Maui. Ordinance No. 5909 – Bill No. 9 Once the deadline passes, the unit can no longer be used for transient accommodations and is expected to convert to long-term housing.

If you own, or are thinking of buying, a Minatoya List condo for vacation rental income, that income has an expiration date. “Grandfathered” or “non-conforming” status offers no protection past the ordinance deadlines.

STRH and B&B Permits

Two permit categories cover short-term rentals in residential areas, and the differences change who can apply and how the property gets used.

A Short-Term Rental Home permit lets you rent an entire home to transient guests for periods under 180 days. You do not have to live on the property. The home must have been built at least five years before the application date.3County of Maui. Short-Term Rental Home Permit Initial Application

A Bed and Breakfast permit lets you rent rooms inside a home where you live on-site as your primary residence. Owner-occupancy is the defining feature.4Maui County MAPPS. CP B&B – Bed and Breakfast Home

Neither permit transfers when the property changes hands. If you buy a home that currently operates with an STRH permit, that permit disappears at closing. For STRH, a new owner must wait five years from the home’s construction date and then apply fresh. You cannot rent to transient guests while waiting for approval, and under current conditions, approval may not come at all.

Permit Caps and the Moratorium

Maui County limits the total STRH permits available in each community plan region. Once a region hits its cap, no new permits are issued regardless of application quality. Bill 159, passed in 2022 as the “caps bill,” froze the existing count of short-term rental uses, reduced caps in residential zoning, and set the STRH cap on Molokai to zero.5Maui County Council. Council Passes Historic Transient Accommodation Caps

Ordinance 5316 added a moratorium on new transient accommodations across Maui. In practice, the pipeline for new STRH and B&B permits is frozen in most areas. Before buying a property for short-term rental use, confirm with the county Planning Department whether permits are even available in that community plan region.

What the Application Involves

Applications are submitted through the county’s online MAPPS system (Maui’s Automated Planning and Permitting Solution).6Maui County MAPPS. CP STRH – Short Term Rental Home You will need a professional site plan, a floor plan marking rooms and emergency exits, and documentation showing you have no outstanding property tax liabilities.

Neighbor notification is where many applications stall. You must mail certified notices to every property owner within 500 feet, explaining your intent to operate and giving neighbors a window to respond.3County of Maui. Short-Term Rental Home Permit Initial Application The county reviews your mailing list and map before you send anything, so there is no shortcut. Opposition does not automatically kill the application, but it can trigger a public hearing before the Planning Commission.

Permit fees are set each year in the county budget ordinance, and the county tells you when payment is due. Review typically takes several months, and you cannot host guests while the application is pending.

Taxes on Rental Income

Every short-term rental operator on Maui must register with the Hawaii Department of Taxation and collect three separate taxes on rental income. Falling behind on any of them can trigger back-tax assessments and jeopardize permit renewal.

Combined, the tax load on short-term rental income reaches 18.5 percent. The GET applies to gross receipts rather than profit, so you owe it on every dollar collected. Tax compliance is checked at permit renewal.

What Property Tax Looks Like

Operating a short-term rental also moves your property into a higher property tax classification. For the fiscal year running July 2025 through June 2026, an owner-occupied home assessed under $1.3 million pays $1.65 per $1,000 of assessed value. A short-term rental assessed under $1 million pays $12.50 per $1,000. Higher-value short-term rentals pay up to $15.55 per $1,000.

On a property assessed at $900,000, the difference works out to roughly $1,485 per year as owner-occupied versus $11,250 as a short-term rental. If you stop renting short-term and convert to a long-term rental or primary residence, you can apply for reclassification at the lower rate. The county actively monitors rental activity and advertising to confirm classification matches actual use.

Fines, Liens, and Enforcement

Maui County runs automated monitoring software that scans booking platforms and matches listings against the official permit database, and task forces follow up on neighbor complaints.

Ordinance 5001 amended Section 19.530.030 of the county code to set initial civil fines of up to $20,000 for operating an unpermitted bed and breakfast, short-term rental home, or transient vacation rental.9County of Maui. Ordinance 5001 – Amending Section 19.530.030 Relating to Civil Fines for Unpermitted Transient Accommodations Daily fines accrue for every day the violation continues after a notice of violation is issued. If the owner ignores the notice, the county can place a lien against the property, blocking any future sale or refinancing until the fines are cleared.

Every online listing must display the property’s permit number and tax map key, which gives enforcement staff and neighbors a direct way to verify whether a rental is authorized.5Maui County Council. Council Passes Historic Transient Accommodation Caps Listings without that information stand out quickly.