Understanding Maui Property Taxes and STR Permits in South Maui
April 23, 2026
April 23, 2026
If you own, or are thinking about buying, a South Maui property for part-time use, rental income, or long-term holding, property taxes and short-term-rental rules can change your numbers fast. In Kihei especially, the difference between a property that is owner-occupied, rented long term, or used as a short-term rental can have a major impact on annual carrying costs and resale strategy. This guide breaks down how Maui County property taxes and STR permits intersect in South Maui, what to watch in apartment-zoned condos, and which due-diligence questions matter most before you buy, sell, or change your use. Let’s dive in.
Maui County taxes real property based on net taxable assessed value after exemptions, and tax rates are set by class per $1,000 of value. That means your tax bill depends not only on value, but also on how the county classifies the property. For South Maui owners, that classification can make a meaningful difference in annual costs.
According to Maui County’s real property tax rate information, FY2026 rates that often matter in South Maui include owner-occupied, non-owner-occupied, apartment, hotel and resort, time share, TVR-STRH, long-term rental, and commercialized residential classes. If you are comparing two similar condos in Kihei, the tax class can be just as important as the purchase price.
In practical terms, Maui County’s tax rules make the STR issue both a use question and a tax question. A property’s tax class may shift based on whether it is your principal residence, a long-term rental, or a legally operated short-term rental. That is why South Maui owners should review classification early, not after closing.
The county explains in its real property tax classification guidance that a principal residence used with a B&B permit, STRH permit, or TVR operation is classified as commercialized residential. A non-principal-residence property with an STRH permit or qualifying conditional permit may be classified as TVR-STRH. The county also states that property is generally classified by highest and best use, with certain exceptions for home exemptions, long-term-rental exemptions, and permitted B&B or TVR uses.
For many South Maui owners, the biggest takeaway is simple: the rate spread between classes is wide. That can materially affect operating costs, net yield, and how attractive a property may be to a future buyer.
Here are some of the FY2026 Maui County rates most relevant to South Maui owners, based on the county’s published rates:
Because these rates are charged per $1,000 of taxable value, even a modest change in classification can shift your annual expenses in a meaningful way.
If the property is your principal residence, Maui County says you may qualify for the homeowner exemption and owner-occupied class if you own and occupy the property as your principal residence on December 31 preceding the tax year. The county also offers a circuit-breaker credit if property taxes exceed 2% of gross income.
You can review those programs on Maui County’s tax relief programs page. For owner-occupants in Kihei or elsewhere in South Maui, this is one of the most important distinctions between a primary home and an investment property.
A short-term rental strategy does not just affect bookings and management. It can directly affect tax treatment. In South Maui, that matters for condo owners, second-home buyers, and sellers marketing to investors.
Maui County’s rules state that a principal residence with a B&B permit, STRH permit, or TVR operation falls into commercialized residential. A non-principal-residence property with an STRH permit or qualifying conditional permit may fall into the TVR-STRH class. So even if two properties look similar on paper, they may carry very different tax burdens depending on legal use and permit status.
This is where South Maui owners need to pay close attention. In many cases, the legal use of the parcel matters more than the way a building is casually described in marketing. That is especially true for apartment-district condos in Kihei.
Under Ordinance 5909, TVRs in apartment districts are being phased out. Existing lawful uses can continue until December 31, 2028 in West Maui and until December 31, 2030 in the rest of the county, with cessation dates of January 1, 2029 and January 1, 2031, respectively.
For South Maui owners outside West Maui, that means some short-term-rental rights in apartment districts may function as sunset rights rather than permanent rights. If you own, buy, or sell a Kihei condo in an apartment district, the expiration timeline may be central to value and buyer demand.
Permitted inventory in Kihei-Makena is limited, which is another reason legal status matters so much. Maui County’s current permit lists show both caps and active permit counts for B&B and STRH uses in the district.
According to the county’s permitted B&B list, Kīhei-Mākena is capped at 100 B&B permits and currently shows 43 active permits. The same county materials note that Kīhei-Mākena is capped at 46 STRH permits and currently shows 34 active permits. That limited supply can make permitted properties more notable in the resale market, but it also means buyers should verify status carefully.
Permit rules are not interchangeable, and compliance details matter. The county’s current lists state that B&B operations require the owner to live on-site, although a manager may be used in some cases. The STRH list requires a designated manager, onsite parking, ads that include the permit number, and no more than six bedrooms across two licensed STRH dwellings.
If you are applying for a new permit, Maui County says new B&B and STRH applications are filed online through MAPPS. The site also notes that renewals are submitted by email and that applications can take several months to process.
If you operate a short-term rental, county property tax classification is only part of the picture. Hawaii also requires tax registration and filings for transient rental activity. This applies whether you self-manage or use a property manager.
The Hawaii Department of Taxation explains on its rental tax guidance page that short-term rental operators must register for state GET and TAT, file G-45/G-49 and TA-1/TA-2 returns, and pay GET on gross receipts plus TAT on gross rental proceeds. Maui County also imposes a separate 3% county transient accommodations tax paid directly to the county.
The state also notes that failure to display the TAT license number on an advertisement can trigger fines. Maui County’s Bill 9 ordinance further requires TVR ads to include the property’s registration number, defined as the TMK without punctuation marks. Importantly, the state says using a property manager does not remove the owner’s tax responsibility.
For South Maui investors, tax class belongs in the same conversation as occupancy, nightly rate, and management fees. The spread between owner-occupied, long-term rental, commercialized residential, and TVR-STRH rates is wide enough that it can materially affect projected net income. Even before you get to financing or reserves, the tax line item may change whether a property still meets your target return.
That is why underwriting in Kihei should go beyond asking whether a unit has been rented before. You also want to know whether the parcel’s legal use supports that strategy, whether the use is permitted or grandfathered, and whether any expiration date could affect future income or resale.
For sellers, buyers in South Maui are looking more closely at compliance, tax treatment, and future use flexibility. A property with clear legal use, documented permit status, and a better-understood tax position may be easier for a buyer to evaluate. In a market where many purchasers are second-home buyers or investors, clarity can support stronger confidence during due diligence.
For buyers, Maui County’s guidance suggests a practical checklist. Before you move forward, review:
These factors can affect carrying costs, financing assumptions, exit strategy, and resale marketability.
If you are evaluating a South Maui condo or villa, try to get answers to the most consequential questions early. Waiting until escrow can create surprises that affect value, negotiations, or your timeline.
A strong due-diligence review should focus on:
In South Maui, especially in Kihei, those details are not minor. They are often central to the decision.
If you are weighing a purchase, preparing to sell, or trying to understand how a change in use could affect your carrying costs, working with a local team that understands South Maui’s permitting and property-tax landscape can save you time and help you make cleaner decisions. If you want tailored guidance on a Kihei condo, Wailea villa, or another Maui investment property, connect with Cory Mckim for practical, local insight.
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