Hilton Head Short-Term Rental Regulations
| Permit | ✓ Required — Short-Term Rental Permit ($150 per bedroom) |
| Primary Residence | Not required |
| Annual Day Limit | No limit |
| Tax Rate | ~10% |
| Max Penalty | $1,000 per violation |
| Insurance | Not required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
Short-Term Rental Permit
| Fee | Amount |
|---|---|
| Initial cost | $150 per bedroom |
| Renewal | $150 per bedroom / Annual |
This permit type does not require primary residence. Zoning restriction: Residential zones; must comply with town zoning and building codes; Certificate of Occupancy required.
Application Process
Online application via town permit portal; submit application with fee, site plan, advertisement copy, and HOA letter if applicable; annual renewal by April 30
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| SC State Sales Tax | 5% | State of South Carolina |
| SC State Accommodations Tax | 2% | State of South Carolina |
| Hilton Head Local Accommodations Tax | 1% | City of Hilton Head |
| Hilton Head Beach Preservation Fee | 2% | City of Hilton Head |
Combined rate: ~10% of gross rental income.
Collection: Self-remit local 3% accommodations tax to Town of Hilton Head Island (unless using licensed property management company). State taxes may be collected by platforms.
Filing: Monthly returns due by the 20th of the following period via MyDORWAY portal (SC DOR); local accommodations tax filed quarterly with Town of Hilton Head Island Revenue Services Office
Rental Limits
Hilton Head does not impose an annual cap on the number of nights you can rent.
Occupancy & Density Limits
Maximum 6 exterior parking spaces per STR property; bedroom must meet building/safety codes
Zoning & Restrictions
Short-Term Rental Permit: Residential zones; must comply with town zoning and building codes; Certificate of Occupancy required
Insurance & Safety
Safety & Operating Requirements
- Smoke detectors in all bedrooms and sleeping areas
- Carbon monoxide detectors required
- At least one fully operable fire extinguisher
- Properties 3,600+ sq ft without fire suppression must have monitored fire alarm system
- Exterior gas-fired grills must have 60-minute automatic shut-off timer
- Combustible gas/propane detection alarms where propane is used indoors
- Unobstructed escape routes required
Penalties for Non-Compliance
First offense: $200; Second offense within 1 year: $500; Third or subsequent offense within 1 year: $1,000; $25 late fee for unpaid fines after 30 days
Platform Requirements
Marketplace facilitators (Airbnb, VRBO, Expedia) collect and remit state taxes on behalf of hosts. Local accommodations tax remittance varies by platform.
Compliance Checklist
Follow these steps to legally operate a short-term rental in Hilton Head:
- Meet safety requirements. Smoke detectors in all bedrooms and sleeping areas. Carbon monoxide detectors required. At least one fully operable fire extinguisher. Properties 3,600+ sq ft without fire suppression must have monitored fire alarm system. Exterior gas-fired grills must have 60-minute automatic shut-off timer. Combustible gas/propane detection alarms where propane is used indoors. Unobstructed escape routes required.
- Apply for Short-Term Rental Permit. Submit application + $150 per bedroom fee.
- Register for tax accounts. Set up lodging tax accounts with South Carolina Department of Revenue.
- Collect and remit taxes. ~10% on all bookings.
- Renew annually. $150 per bedroom renewal fee.