Kauai Short-Term Rental Regulations

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Permit & Licensing

Homestay Permit

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Transient Vacation Rental (TVR) Permit / Nonconforming Use Certificate (NCU)

This permit type does not require primary residence. Zoning restriction: Permitted by right within Visitor Destination Areas (VDA); outside VDA only under a legacy Nonconforming Use Certificate obtained by the March 30, 2009 deadline (no new NCUs issued outside VDA). NCUs further restricted on land designated "Agricultural.".

Application Process

Applications and renewals are submitted to the Kauai County Planning Department using the TVR-NCU Renewal Application Form (for TVR/NCU) or the Homestay Recertification Application Form (for Homestay), both published annually as PDF forms by the Planning Department.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

Combined rate: 18.712% of gross rental income.

Rental Limits

Kauai does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

Transient Vacation Rentals (TVR) are permitted by right within designated Visitor Destination Areas (VDA). Outside VDA, TVR operation is allowed only under grandfathered Nonconforming Use Certificates (NCU); the deadline to obtain an NCU was March 30, 2009, and no new NCUs are being issued outside VDA. No nonconforming use certificate is issued for a TVR on land designated "Agricultural" by state law unless the dwelling was built prior to June 4, 1976, or the owner secured a qualifying special permit under HRS Section 205-6 before the ordinance's enactment. Homestay (owner-occupied) permits are governed separately under Ordinance 1002.

Insurance & Safety

Insurance

Kauai does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Evacuation plan required (Section IV.E)

Penalties for Non-Compliance

• Civil fine of not less than $500 and not more than $10,000 for each offense (Kaua'i County Code Sec. 8-17.6)
• After one month of continued violation, each additional day constitutes a new and separate violation
• Under general Chapter 8 zoning enforcement (Sec. 8-3.5), criminal fines up to $2,000 and civil fines up to $10,000 per day may apply to continuing violations; unpaid fines may become a lien on the property

TVR-specific civil fine is $500-$10,000 per offense; broader Chapter 8 zoning enforcement allows escalation up to $10,000 per day for continuing violations.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Kauai:

1. Determine your permit type. Kauai has 2 permit types. Identify which applies to your property (Homestay Permit, Transient Vacation Rental (TVR) Permit / Nonconforming Use Certificate (NCU)).
2. Meet safety requirements. Evacuation plan required (Section IV.E).
3. Apply for your STR permit. Submit application + $800 fee. See permit types above to determine which applies.
4. Register for tax accounts. Set up lodging tax accounts with Hawaii Department of Taxation.
5. Collect and remit taxes. 18.712% on all bookings.
6. Renew annually. $750 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Kauai?

Yes. Kauai requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types — one requires the property to be your primary residence, and another allows non-owner-occupied (investment) use. See the permit types above to find which applies to your property.

How much does a short-term rental permit cost in Kauai?

A short-term rental permit in Kauai costs $800.

Does Kauai require a short-term rental to be your primary residence?

It depends on the permit type. At least one Kauai permit requires the property to be your primary residence, while another allows non-owner-occupied (investment) use — see the permit types above.

How many days a year can you short-term rent in Kauai?

Kauai does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Kauai?

Short-term rental stays in Kauai are subject to a combined 18.712% in lodging taxes. This combines 4.712% Hawaii General Excise Tax (GET) + 11.00% Hawaii State Transient Accommodations Tax (TAT) + 3% Kauai County Transient Accommodations Tax (TAT) Surcharge. The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Kauai?

Operating without a permit can cost up to $10,000.