Honolulu vs Sacramento

Hawaii Restricted | California 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
Sacramento, California
Status Legal with Permit
Permit Fee $230 initial application; $160 annual renewal; $54 annual Business Operations Tax
Tax Rate 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments
Day Limit 90 days/year
Renewal Annual
Platform Tax Yes
Max Fine Contact city for current details

Sacramento has more favorable STR regulations overall.

Permits & Licensing

Honolulu charges $1,000 initial registration; $500 annual renewal for STR licensing, while Sacramento charges $230 initial application; $160 annual renewal; $54 annual Business Operations Tax. Honolulu renewal is annual, and Sacramento renewal is annual. Overall, Sacramento 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 Sacramento, hosts pay 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments. A key difference: platforms like Airbnb automatically collect taxes in Sacramento, but hosts in Honolulu must collect and remit taxes themselves — a significant operational burden.

Day Limits & Restrictions

Sacramento imposes a 90-night annual limit, while Honolulu has no annual cap — a significant advantage for high-volume hosts.

Fines & Enforcement

Hosts operating without a permit in Honolulu face penalties including $10,000/day for recurring violations; $5,000 initial fine. In Sacramento, violations can result in Contact city for current details. 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 →

Sacramento Overview

Host must reside in the property at least 184 nights/year (primary residence requirement); non-primary-residence rentals capped at 90 days/year. Maximum 6 guests at any time.

Contact: Revenue Division, Finance Department — (916) 808-8500

Full Sacramento guide →

Frequently Asked Questions

Is it easier to Airbnb in Honolulu or Sacramento?
Honolulu is classified as "Restricted" while Sacramento is "Legal with Permit." Honolulu's permit fee is $1,000 initial registration; $500 annual renewal compared to $230 initial application; $160 annual renewal; $54 annual Business Operations Tax in Sacramento. Overall, Sacramento has a more host-friendly regulatory environment.
Which city has higher STR taxes — Honolulu or Sacramento?
Honolulu charges ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET), while Sacramento charges 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments. Notably, Sacramento 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. Sacramento: Contact city for current details. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Honolulu and Sacramento have day limits for Airbnb?
Honolulu has no annual day limit. Sacramento limits STRs to 90 nights per year.
Which city is better for first-time Airbnb hosts — Honolulu or Sacramento?
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. Sacramento charges $230 initial application; $160 annual renewal; $54 annual Business Operations Tax with 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments. Automatic tax collection in Sacramento makes compliance easier for beginners.