What is the Hawai‘i County Long-Term Rental tax class?

It is a new property tax classification for homes rented to the same tenant for six months or longer on Hawai‘i Island.

When will the LTR tax rate be announced?

Hawai‘i County must finalize and publish the rate by June 20, 2026.

Are properties over $2 million eligible?

No. Properties with net taxable values above $2 million do not qualify for the LTR class.

Do owners need to apply every year?

Yes. Owners must submit an annual application before December 31.

Do all units on the property need to be long-term rented?

Yes. To qualify, all units on the property must be rented for longer than 180 days.

Can a vacant property still qualify?

Yes. If the home is under renovation or actively listed for a long-term tenant, the County may allow up to 12 months of vacancy with proper documentation.

What happens if I rent short-term?

The County may revoke the classification and impose retroactive taxes plus a 10% penalty if the home is rented for less than six months or advertised for short-term use.

Is the LTR rate the same as Affordable Rental Housing?

No. ARH is a separate classification with different eligibility rules and typically lower tax rates.

Does advertising matter?

Yes. Advertising a property as a short-term rental can disqualify it from the LTR classification.

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Home » Archives for January 1, 2026

Archive for January 1, 2026

Hawai‘i County Long-Term Rental Tax Class Explained: What Big Island Property Owners Need to Know

By Kai Ioh | Nov 2025 Executive Summary This page explains Hawai‘i County’s new Long-Term Rental (LTR) property tax classification for Big Island homes. It is relevant for property owners, investors, and landlords renting h...

January 1, 2026

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