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Short-Term Rental Regulations
in Hilton Head Island, SC

Last verified: March 2026 · Report an update

Zoning & Conditions

Applies to privately owned residential property used as vacation homes for rental periods of fewer than 30 days. Owners must maintain an active Town Business License and ensure the 3% Local Accommodations Tax is paid. Permits are non-transferable, non-refundable, and valid only for the specific property listed.

How to Obtain a Permit

1. Apply for an annual Short-Term Rental Permit through the Town's online portal (valid May 1–April 30). 2. Obtain a Town of Hilton Head Island Business License. 3. Register to collect and remit the 3% Local Accommodations Tax if not using a licensed property manager.

Regulatory Updates — Hilton Head Island

Proposed and recent legislation

PassedJanuary 2023

Town of Hilton Head Island STR Permit Program

All short-term rental operators must obtain a Town of Hilton Head Island business license and rental permit. The permit requires proof of ownership or management authorization, a 24/7 local contact designation, and registration with the South Carolina Department of Revenue for accommodations tax collection.

PassedApril 2024

South Carolina Accommodations Tax Compliance

South Carolina's 7% accommodations tax (5% state + 2% local option) applies to all Hilton Head Island short-term rental income. The SC Department of Revenue has increased outreach to ensure all island vacation rental operators are properly registered, as the accommodation tax is a critical revenue source for local tourism promotion.

PassedSeptember 2024

Beaufort County Hospitality Tax Updates

Beaufort County's hospitality tax, which applies on top of the state accommodations tax for Hilton Head Island properties, was reviewed for rate and collection compliance. Major platforms now collect and remit both the state and county-level taxes on behalf of most hosts.

Official Resources

Official Hilton Head Island STR regulation source

Local Resources & Advocacy

Hilton Head Island-Bluffton Chamber of CommerceLocal

Represents the local tourism and hospitality industry including vacation rental operators. Tracks town ordinance changes and provides compliance resources for STR permit holders.

South Carolina Hotel and Lodging AssociationStatewide

State-level trade association monitoring accommodations regulations across South Carolina, including STR-specific licensing and tax requirements for Hilton Head Island operators.

Vacation Rental Management Association (VRMA)National

National trade association with significant member representation in Hilton Head's professional vacation rental management market. Provides advocacy and compliance resources.

Frequently Asked Questions

Are short-term rentals allowed in Hilton Head Island, SC?
Applies to privately owned residential property used as vacation homes for rental periods of fewer than 30 days. Owners must maintain an active Town Business License and ensure the 3% Local Accommodations Tax is paid. Permits are non-transferable, non-refundable, and valid only for the specific property listed.
Is a permit required to operate a short-term rental in Hilton Head Island?
Yes, a permit is required to operate a short-term rental in Hilton Head Island. 1. Apply for an annual Short-Term Rental Permit through the Town's online portal (valid May 1–April 30). 2. Obtain a Town of Hilton Head Island Business License. 3. Register to collect and remit the 3% Local Accommodations Tax if not using a licensed property manager.
How do I get a short-term rental permit in Hilton Head Island?
1. Apply for an annual Short-Term Rental Permit through the Town's online portal (valid May 1–April 30). 2. Obtain a Town of Hilton Head Island Business License. 3. Register to collect and remit the 3% Local Accommodations Tax if not using a licensed property manager.
What town and HOA permits are needed for a Hilton Head Island vacation rental?
Operators need a Town of Hilton Head Island business license and rental permit (annual renewal), plus registration with the South Carolina Department of Revenue for accommodations tax. But most Hilton Head properties are in one of the island's many private gated plantation communities (Sea Pines, Palmetto Dunes, Port Royal, etc.) — each with its own property owners' association (POA) that may require POA approval, registration, and compliance with community-specific rental rules. Always review your plantation's governing documents alongside town requirements.
What taxes apply to Hilton Head Island short-term rental income?
South Carolina imposes a 7% accommodations tax on gross rental receipts (5% state + 2% local option tax for Beaufort County). Beaufort County also imposes a 1.5% hospitality tax. The combined rate on rental income is typically around 8.5–10% depending on how various taxes are calculated. Major platforms including Airbnb and Vrbo collect and remit SC state accommodations tax on behalf of hosts. Operators should verify which local and county taxes are also being remitted.
Do plantation HOA rules override the town's vacation rental regulations on Hilton Head?
Yes — plantation POA rules add a layer on top of (and sometimes in conflict with) town regulations. If your plantation's rules prohibit short-term rentals or require minimum stay lengths, you must comply even if the town's ordinance would otherwise allow the rental. Common examples: Sea Pines Resort requires all rentals to be managed through the Sea Pines rental program or an approved manager; some residential villa communities in plantations prohibit non-owner-occupied STRs. Review your POA's CC&Rs carefully before listing.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction