Hawaii Taxes 2021??

[Lexi775]

Aloha!

Trying to set up our tax options on our listing, and I see that in some places AirBnB collects taxes and in other places it doesn't.

Do they collect in Hawaii (Big Island)?

If not, which kinds of tax do I need to collect and what percent? I've heard GET and TAT for a total of approx. 15%, but want to make sure that's correct.

Thank you in advance! 

[Yamini6]

Hi Nicki,

How do you set up these taxes for a rental in Maui County? Are the numbers set up by me correct?

10.25% State TAT + 3% Maui County TAT = 13.25%

GE Sales tax = 4% + 4% of 4% = 4.16 % 

My accountant is confused as well.

[Joanne686]

I'm so confused about filing GET &TAT on Kauai. 

Example:   

guest paid $100. cleaning fee $50

"service fee" $25          guest pays $175

Host payout $100

cleaning fee $50

- host service fee (3.0%)  $4.50  

SO, my gross is $149.50  ??? Then do I put down the cleaning fee down as an exemption??  Is the service fee what I initially put down for taxes that the guest pays? I'm a newbie, obviously, I've call HI Tax but it's still not clear. Please forgive me if I sound so stupid and naive!

[Nicki116]

Rent and cleaning fee are subject to GET and TAT. 

[Gregory469]

Airbnb please put paid by guest next to payout so owners can easily calculate excise tax, etc

[Kimo19]

Hello fellow ABNBers,

Please clarify the GET and TAT paid in Hawaii. When we pay Hawaii tax online, is the gross revenue amount based on what the GUEST pays or the gross revenue I receive as a HOST as there are fees deducted from the amount I receive. Much aloha and thanks for your help! Kimo

[Pat271 · Accepted solution]

@Joanne686  @Kimo19 The GET and TAT gross revenue is based on what the guest pays. Here is a full description. A definition of gross revenue and fees to include are in #4.

https://files.hawaii.gov/tax/legal/brochures/TAT_brochure.pdf

Please also keep in mind that the GET gross revenue will be a little more, as you have to include the GET tax itself in the revenue and pay tax on it (I know, mind-boggling). That’s why you should collect 4.167% tax from the guest for GET, instead of 4%.

Also, keep in mind that none of your expenses should be deducted from the revenue. So, even if you have to pay a housekeeper, you still include the housekeeper fee the guest paid in the revenue. GET and TAT taxes are simply the taxes that the GUEST is paying to rent the accommodation.

Also keep in mind that host/guest Airbnb management fees are not included in gross revenue, since you as the host never receive those fees.

[Kimo19]

@Pat271 Aloha Pat,

That is so helpful and straight forward. Much mahalos for taking the time to respond. 

Mahalo kimo

[Sherri227]

I'm finding conflicting information on whether or not to charge the TAT on cleaning fees.  Everything I've read on Hawaii tax on line says, "gross rental proceeds do include fees, such as maintenance fees, cleaning fees and management fees, that are not usually charged separately to guests or tenants.   I called Hawaii tax online and they said I do not include cleaning fees, only "rent".  So I am taking this above statement to mean that if we separate out the cleaning fees, which we have to on Airbnb, then we do not have to include that as something to charge TAT on.    Thoughts?

[Mason68]

From what I have read and understand, the document shared earlier: https://files.hawaii.gov/tax/legal/brochures/TAT_brochure.pdf

It says " For example, utility bills, maintenance and cleaning fees, management fees, and commissions to travel agents are NOT deductible and must be included as gross rental proceeds."

So you would include those in your gross revenue and it would be subject to tax