What are the short-term rental rules and taxes on Hilton Head Island, SC?

Hilton Head Island hosts deal with two offices. The Town of Hilton Head Island runs the short-term rental permit, the business license and its own accommodations tax and beach fee. The South Carolina Department of Revenue (SCDOR) collects state sales and accommodations tax. Everything below comes from those offices and from Airbnb's and Vrbo's own tax pages, linked where it's used.

Checked on Nov 4, 2026. This is what the official pages said that day, not legal or tax advice. Confirm with the town and SCDOR before you list.

Do you need a permit or registration

Town short-term rental permit

Yes, for each property. The town's permit page (opens in a new tab) says a permit must be obtained for each property offered for short-term rental. The town's FAQ (opens in a new tab) defines short-term as less than 30 days. The ordinance covers condos, villas and single-family homes, but not timeshares or hotels.

Fee and dates. From the town's renewals page (opens in a new tab):

• $150 per bedroom a year. This replaced the old flat $250 fee.
• Permits run May 1 to April 30, and the renewal deadline is now April 30 each year.
• For 2026 only, the town extended the permit deadline to May 15, 2026. Renewals after that date pay a $250 late fee. In later years the late fee applies after April 30.
• Permits can't be refunded or moved to another property or owner.

Applying. The permit page says to request an account, register in the town's GovOS permit portal, fill in the application, pay, and allow up to 30 days for approval. The town's requirements checklist (opens in a new tab) adds:

• The permit must be in a person's name, not a business entity such as an LLC.
• A current-year town business license.
• A copy of your ad showing your permit number. The number must appear on all ads.
• An HOA approval letter, if you have an HOA.
• For single-family homes, a site plan showing the trash area and up to six 9 ft by 18 ft parking spaces. Condos and villas skip the site plan.

Questions go to 843-341-4740 or STRPlan@hiltonheadislandsc.gov.

Town business license

Also required, and separate from the permit. The business license page (opens in a new tab) says all property rentals need a license. The tax is based on gross revenue from your prior year's federal return, or projected revenue in your first year. The application page (opens in a new tab) lists a $10 non-refundable application fee and a separate Property Rental Business License application. Neither page lists the rental rate. Licenses run May 1 to April 30 and renewals are due April 30. Call Revenue Services at 843-341-4677.

Outside town limits

This page covers the Town of Hilton Head Island only. Bluffton, the City of Beaufort and unincorporated Beaufort County run their own licenses and taxes.

Occupancy and sales taxes

Combined, using these official rates: 5% + 2% + 1% + 2% = 10%.

Notes on the parts:

• The SCDOR fact sheet sets 7% on accommodations, 5% state plus 2%, plus any local sales taxes SCDOR administers. IL 26-5 (effective March 1, 2026) says no local sales and use tax is imposed in Beaufort.
• The town's page calls its tax 3% of gross rental receipts, 1% to the accommodations tax and 2% to the beach preservation fee. Airbnb's page labels the same 3% as a 2% local accommodations tax and a 1% beach preservation fee. The total matches.
• The town counts anyone renting for less than 90 days as transient.
• Stays leased to the same person for 90 continuous days become exempt from the state tax on the 91st day, per the fact sheet.

What Airbnb and Vrbo collect for you there

Airbnb. Airbnb's South Carolina tax article (opens in a new tab) says that for stays of 89 nights or fewer it collects 5% state sales tax, 2% state accommodations tax and state-administered local taxes. For Hilton Head Island it also lists a 2% local accommodations tax and a 1% beach preservation fee. It lists Beaufort County's 3% accommodations tax as applying to unincorporated areas only.

Vrbo. Vrbo's N to Z tax list (opens in a new tab) shows it collects South Carolina state sales tax, state accommodations tax and state-administered local taxes for stays under 90 nights, since Sept 1, 2019. It does not list Hilton Head Island.

SCDOR's view. The fact sheet makes the business providing the rooms liable for the tax, including an "online travel company, or similar entity handling the accommodations." It doesn't say whether an owner who rents only through a platform still files a return.

What stays your job:

• The town's 3% on Vrbo bookings and direct bookings. The town's checklist says that if you rent on your own or through an unlicensed property manager, you collect the 3% and remit it to the town.
• State sales and accommodations tax on direct bookings.
• The permit and business license, every year.
• The town's quarterly return. The ATAX page says everyone renting for less than 90 days must open an account with Revenue Services and file even with zero sales.

Filing and registering for the taxes you must file yourself

Town accommodations tax and beach fee (town ATAX page (opens in a new tab)):

1. Open an account with Revenue Services (843-341-4677).
2. File quarterly: Jan to Mar by April 20, Apr to Jun by July 20, Jul to Sep by October 20, Oct to Dec by January 20.
3. Pay online with the PIN on your tax form, or mail to Town of Hilton Head Island, Attention: Revenue Services, One Town Center Court, Hilton Head Island, SC 29928.
4. Late payment carries 5% of the unpaid amount for each month past due, and delinquent businesses face a $1,092.50 municipal summons.

SC sales and accommodations tax (SCDOR fact sheet (opens in a new tab)):

1. Get a $50 retail license.
2. File Form ST-388 with ST-3T by the 20th of the month after the period, even when no tax is due. ST-3T is required even for one rental unit. ST-389 isn't required in a county with no local sales tax, which SCDOR says includes Beaufort.
3. If you rent for one week or less in a calendar quarter, you don't need a license but must remit annually by April 15.

This is not tax advice. A South Carolina CPA can confirm which returns your platform mix needs.

Other local rules

The town's requirements checklist (opens in a new tab) sets these. The ordinance page (opens in a new tab) lists the parking, fire and permit changes Town Council voted on in October 2025.

• Responsible party. An owner or licensed agent must be reachable by phone during every rental and take action within one hour of a complaint.
• Parking. Up to six vehicles on the driveway. Tell guests the number of spaces and keep them off grass and pine straw.
• Trash and noise. Give guests trash pickup instructions, keep garbage in containers, and post the noise ordinance where guests can see it.
• Pools and hot tubs. Tell guests whether one is available and what safety measures are in place.
• Bedrooms. Must meet building and safety codes and be used mainly for sleeping, not as living or dining space.

Fire safety, from the town's STR fire safety page (opens in a new tab):

• At least one 2-A:10-B:C extinguisher per floor, inspected yearly by a licensed vendor.
• Smoke alarms inside and outside every sleeping area and on every level, interconnected, no older than 10 years.
• Homes of 3,600 sq ft or more need a monitored fire alarm system with smoke detection in sleeping areas, every room on the exit path and each story. The ordinance page also allows a compliant fire suppression system.
• CO alarms on each level near sleeping areas in any home with a fuel-burning appliance, attached garage or fireplace.
• A propane alarm mounted near the floor where propane is used, and an automatic shutoff timer of no more than 60 minutes on exterior gas grills.
• Two ways out of every room, and address numbers at least 4 inches tall.

None of the town pages read sets a guest cap or a limit on rental nights. Check the full ordinance on Municode (opens in a new tab) before you set a maximum. For alarm counts, see how many smoke and CO alarms a rental needs. For storm planning, see hurricane prep for a vacation rental.

Use our house rules template to post the parking, trash and noise rules you confirm.

Where to check for changes

• Town STR permit page (opens in a new tab) and ordinance page (opens in a new tab)
• Town accommodations tax and beach fee (opens in a new tab)
• SCDOR local tax charts (opens in a new tab)
• Airbnb South Carolina taxes (opens in a new tab)
• SC House bill H.3876 (opens in a new tab), on who must collect and remit accommodations taxes. The statehouse page showed it in the Senate after a Finance Committee report on May 5, 2026. It is not law.

For another South Carolina market, see Myrtle Beach and Horry County. For other markets, see short-term rental rules by city and the already hosting hub. To see what a booking leaves after fees, use the Airbnb fee calculator.