Honolulu vs Phoenix

Hawaii Restricted | Arizona Legal with Permit

Disclaimer: General information only — not legal advice. Verify with your local government.

Honolulu, Hawaii
Status Restricted
Permit Fee $1,000 initial registration; $500 annual renewal
Tax Rate ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine $10,000/day for recurring violations; $5,000 initial fine
Phoenix, Arizona
Status Legal with Permit
Permit Fee $250/year (non-refundable)
Tax Rate ~12.57% combined transient lodging tax (state + county + city)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations

Phoenix has more favorable STR regulations overall.

Permits & Licensing

Honolulu charges $1,000 initial registration; $500 annual renewal for STR licensing, while Phoenix charges $250/year (non-refundable). Honolulu renewal is annual, and Phoenix renewal is annual. Overall, Phoenix has a more permissive regulatory environment (Legal with Permit) compared to Honolulu (Restricted).

Tax Obligations

In Honolulu, hosts pay ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET). In Phoenix, hosts pay ~12.57% combined transient lodging tax (state + county + city). A key difference: platforms like Airbnb automatically collect taxes in Phoenix, but hosts in Honolulu must collect and remit taxes themselves — a significant operational burden.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in Honolulu face penalties including $10,000/day for recurring violations; $5,000 initial fine. In Phoenix, violations can result in $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

Honolulu Overview

STRs limited to resort-zoned and eligible apartment-zoned areas. Hosts must register as B&B (owner-occupied, max 2 guest rooms) or TVU (whole-home in eligible zones). Registrations are non-transferable.

Contact: Dept. of Planning and Permitting — (808) 768-7887

Full Honolulu guide →

Phoenix Overview

Arizona SB 1168 (2022) grants cities enhanced enforcement while SB 1350 (2016) preempts outright bans. Phoenix requires STR permit, $500K liability insurance, neighbor notification, and prohibits STR use of accessory dwelling units.

Contact: Phoenix Planning & Development — (602) 534-9723

Full Phoenix guide →

Frequently Asked Questions

Is it easier to Airbnb in Honolulu or Phoenix?
Honolulu is classified as "Restricted" while Phoenix is "Legal with Permit." Honolulu's permit fee is $1,000 initial registration; $500 annual renewal compared to $250/year (non-refundable) in Phoenix. Overall, Phoenix has a more host-friendly regulatory environment.
Which city has higher STR taxes — Honolulu or Phoenix?
Honolulu charges ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET), while Phoenix charges ~12.57% combined transient lodging tax (state + county + city). Notably, Phoenix benefits from automatic platform tax collection, while hosts in Honolulu must handle taxes themselves.
Which city has stricter fines for illegal short-term rentals?
Honolulu: $10,000/day for recurring violations; $5,000 initial fine. Phoenix: $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Honolulu and Phoenix have day limits for Airbnb?
Honolulu has no annual day limit. Phoenix has no annual day limit.
Which city is better for first-time Airbnb hosts — Honolulu or Phoenix?
For new hosts, consider the total cost of entry: Honolulu charges $1,000 initial registration; $500 annual renewal for permits with ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET) in taxes. Phoenix charges $250/year (non-refundable) with ~12.57% combined transient lodging tax (state + county + city). Automatic tax collection in Phoenix makes compliance easier for beginners.