Hilton Head Short-Term Rental Regulations

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Permit & Licensing

Short-Term Rental Permit

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

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

Insurance

Hilton Head 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

• 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:

1. 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.
2. Apply for Short-Term Rental Permit. Submit application + $150 per bedroom fee.
3. Register for tax accounts. Set up lodging tax accounts with South Carolina Department of Revenue.
4. Collect and remit taxes. ~10% on all bookings.
5. Renew annually. $150 per bedroom renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Hilton Head?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Hilton Head requires a Short-Term Rental Permit.

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

No. Hilton Head allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

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

Hilton Head 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 Hilton Head?

Short-term rental stays in Hilton Head are subject to a combined ~10% in lodging taxes. This combines 5% SC State Sales Tax + 2% SC State Accommodations Tax + 1% Hilton Head Local Accommodations Tax + 2% Hilton Head Beach Preservation Fee. Hosts are legally responsible; many booking platforms collect and remit them automatically on the host's behalf.

What are the penalties for short-term rental violations in Hilton Head?

Penalties run up to $1,000 per violation.