Rental Rules by City / Free checklist / Hilton Head Island

Is my Hilton Head Island rental legal? Checklist

Beaufort County, South Carolina · Based on our Hilton Head Island page, last verified Oct 24, 2026 · Print

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📋 The Basics

Can I rent my place short-term here?: Yes, with a permit
Do I need a permit?: Yes. You need a yearly Town STR permit and a business license.
What taxes do I pay?: Total about 10%. Check your Airbnb payout report to see which ones Airbnb collects; you pay the rest yourself.

Your 3 steps to be legal

Get the Town STR permit.
Get a Town business license.
Open a Town tax account and file every quarter.

⚠️ Biggest risk: 5% of unpaid tax per month late, plus a possible summons.

Words confusing? See the glossary. Details and official sources are below.

This is the general rule for Hilton Head Island. Does your address qualify?

The free info covers the city as a whole. Your property can still be different: zoning can change from one street to the next, and an HOA or condo ban can stop rentals even where the city allows them. The penalties Hilton Head Island lists are on the Hilton Head Island page.

Your $49 Compliance Check looks at your exact property:

Whether your exact address and zone allow short-term rentals
A check of HOA / condo rental restrictions to look for
Which permits and tax accounts you personally need
What you're missing right now
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Permit / license / registration

Permit: A Town of Hilton Head Island short-term rental permit is required (annual, May 1 to April 30); fee reported as $150 per bedroom: verify with the Town.
Business license: Anyone owning a rental property (or partial interest) needs a Town business license.
Tax account: Open an account with Town Revenue Services; returns are due quarterly (Apr 20, Jul 20, Oct 20, Jan 20), even with zero sales.

Zoning, where allowed & definitions

Not listed on our page: Verify with the city/county before renting.

Night limits, minimum stays & occupancy

Not listed on our page: Verify with the city/county before renting.

Fees, penalties & pending changes

Penalties: 5% of unpaid tax per month late, plus a possible $1,092.50 municipal summons.

Taxes & who collects them

Register / account for SC state sales tax (5%)
Register / account for SC state accommodations tax (2%)
Register / account for Town accommodations tax (1%)
Register / account for Town beach preservation fee (2%)
What Airbnb collects: What Airbnb collects here: verify on Airbnb's local tax help pages and in your payout reports; you remain responsible for any tax it does not collect.
Vrbo and direct bookings: check which taxes Vrbo collects in your area; for direct bookings you collect and remit all of them yourself.

Total rate: 10%. Town 3% (1% accommodations tax + 2% beach preservation fee) on stays under 90 days, filed quarterly. Beaufort County local option sales/accommodations taxes not included: verify. Calculate.

HOA / condo check

Read your declaration, bylaws and rules for rental bans, minimum terms, caps and approval requirements.
Get any association sign-off or approval letter your city or association requires.
See our HOA & condo guide.

Insurance

Confirm your homeowner/condo policy covers short-term rental use, or add a short-term rental policy. Platform host protection is not a substitute for insurance.
Ask your association whether it requires specific liability coverage.

Deadlines

Renew city/county permits or registrations on their schedule (often annually): confirm the date with the office that issued it.
File state and local lodging tax returns on the schedule your tax office assigns.

Official sources

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Not legal or tax advice. Last verified Oct 24, 2026. Rules and rates change: confirm with the official sources linked before you rent or file.