Last updated: July 9, 2026 · By Clint Hansen, Broker
Clint has told buyers the same thing for 26 years: "You don't buy here to make money, you buy here for a lifestyle change and the opportunity to live a healthier and more fulfilled life." Maui runs on tourism — given the island's geographic isolation, few things provide as many resources with as little impact as the visitor industry — and while Clint believes the economy needs to diversify, he's candid that tourism is the vehicle that lets the island thrive. Most vacation-rental buyers, in his experience, aren't trying to get rich; they want to cover some of their lifestyle costs, gain a few write-offs, or park 1031 tax-deferred funds after selling a business or another property.
Clint is upfront that the numbers are tighter than most buyers expect. Even with 50% down, it can be difficult to break even. Property-management fees are often around 25%, and on top of that sit three layers of tax — Hawaii's General Excise Tax (GET), the Transient Accommodations Tax (TAT), and the Maui County Transient Accommodations Tax (MCTAT) — which Clint describes as "another property manager you don't get the benefit of." That's exactly why choosing the right property matters more than chasing a headline cap rate. (Confirm current tax rates and your own numbers with your CPA.)
Three layers of tax apply to short-term rental income on Maui, and they stack on top of each other. Rates below are current as of 2026 and verified directly against the taxing authorities — always confirm your own numbers with your CPA.
| Tax | Rate | Notes |
|---|---|---|
| Hawaii General Excise Tax (GET) | 4.5% | 4% state rate + 0.5% Maui County surcharge (through 2030) |
| State Transient Accommodations Tax (TAT) | 11% | Rose from 10.25% on January 1, 2026 (Act 96's "Green Fee") |
| Maui County TAT (MCTAT) | 3% | County-level tax on top of the state TAT, in effect since November 2021 |
| Combined | 18.5% | Off the top of gross rental income, before management fees |
Sources: Hawaii Dept. of Taxation — GET rate · Hawaii Dept. of Taxation — Maui County GET surcharge · Hawaii Dept. of Taxation — TAT rate increase, Announcement No. 2025-03 · Maui County — Transient Accommodations Tax (MCTAT)
There are properties and locations where you can do better. One of Clint's favorites is Maui Banyan, where a two-bedroom unit is often a lock-off: you can rent one side as a studio and the other as a one-bedroom — essentially two units for the price of one. It's also flexible for owners: use just the studio side for a short stay, the one-bedroom for a longer visit, or the full two-bedroom when family comes. Layout and location like this do more for real-world returns than market timing.
Uncertainty over Bill 9 — and whether many properties will be allowed to be vacation-rented — has significantly dropped the price of vacation rentals, and of Maui condos generally. The negative press has also reduced the number of people visiting Maui. For a buyer, Clint sees a silver lining: it's a strong time to buy a condo, because you typically need significantly less money down to make the numbers meet your financial needs.
Clint has started using a term for a buyer he's seeing more of: climate refugees. "People are making the decision to visit large parts of the year on island not because it's warm, but rather because it's cool. We have some of the most stable weather patterns in the world — not too hot, not too cold, just right." It fits his larger point: the strongest reason to own on Maui isn't the spreadsheet, it's the life. Hawaii has the highest life expectancy of any U.S. state (CDC/NCHS, 2022 state life tables) — and, more importantly, people are simply happier.
Thinking about a Maui vacation rental? Clint will give you the honest numbers before you buy.
Clint Hansen, Broker (RB-21616) ·
161 Wailea Ike Place, A-106, Wailea, Maui, HI 96753
Office: (808) 879-3667 · clinthansen@mauirealestate.net
