Honolulu vs Sedona

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
Sedona, Arizona
Status Legal with Permit
Permit Fee $210/year
Tax Rate 13.3%–13.9% combined (varies by county portion — Yavapai vs Coconino)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500 first violation; $1,000 second; $3,500 third; up to $1,000/month without permit

Sedona has more favorable STR regulations overall.

Permits & Licensing

Honolulu charges $1,000 initial registration; $500 annual renewal for STR licensing, while Sedona charges $210/year. Honolulu renewal is annual, and Sedona renewal is annual. Overall, Sedona 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 Sedona, hosts pay 13.3%–13.9% combined (varies by county portion — Yavapai vs Coconino). A key difference: platforms like Airbnb automatically collect taxes in Sedona, 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 Sedona, violations can result in $500 first violation; $1,000 second; $3,500 third; up to $1,000/month without permit. 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 →

Sedona Overview

Sedona straddles Yavapai and Coconino counties, so tax rates vary. Each unit needs its own permit. Special events (weddings, retreats) strictly prohibited. 24/7 complaint hotline: (928) 203-5110.

Contact: Sedona Community Development — (928) 203-5198

Full Sedona guide →

Frequently Asked Questions

Is it easier to Airbnb in Honolulu or Sedona?
Honolulu is classified as "Restricted" while Sedona is "Legal with Permit." Honolulu's permit fee is $1,000 initial registration; $500 annual renewal compared to $210/year in Sedona. Overall, Sedona has a more host-friendly regulatory environment.
Which city has higher STR taxes — Honolulu or Sedona?
Honolulu charges ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET), while Sedona charges 13.3%–13.9% combined (varies by county portion — Yavapai vs Coconino). Notably, Sedona 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. Sedona: $500 first violation; $1,000 second; $3,500 third; up to $1,000/month without permit. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Honolulu and Sedona have day limits for Airbnb?
Honolulu has no annual day limit. Sedona has no annual day limit.
Which city is better for first-time Airbnb hosts — Honolulu or Sedona?
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. Sedona charges $210/year with 13.3%–13.9% combined (varies by county portion — Yavapai vs Coconino). Automatic tax collection in Sedona makes compliance easier for beginners.