RuleGridSouth Carolina · Hilton Head Island
Hilton Head Island
Short-term rentals (rental periods under 30 days) are legal island-wide in the Town of Hilton Head Island, but every STR property must hold an annual Short-Term Rental Permit issued under Title 10, Chapter 2 of the Municipal Code ("Short-Term Rentals"), which Town Council repealed and replaced by ordinance on second reading in October 2025, with the new rules effective May 1, 2026. The STR Permit is separate from and in addition to an annual Town Business License, and both are required to operate legally. Permits run May 1 to April 30 (aligned to the business license year as of the October 2025 amendments; previously a calendar-year permit). The permit fee moved from a flat $250 per property to $150 per bedroom per year, adopted via the FY2026 budget ordinance (first reading March 10, 2026; second and final reading March 31, 2026, effective immediately on adoption), with the payment portal opening April 6, 2026 and a $250 late fee for renewals filed after May 15, 2026 (April 30 annually thereafter). Key limits and conditions: the permit must be issued to a natural person, not an LLC or other entity; the STR permit number must appear on all advertisements; an HOA letter approving STR use is required where applicable; a site plan is required for single-family dwellings; a maximum of six 9'x18' parking spaces on the driveway and no parking on grass or pine straw; bedrooms must meet building/safety codes and be intended primarily for sleeping; and the owner or STR agent must be reachable by phone at all times and take responsive action within one hour of a complaint. Fire/safety rules include fire extinguishers, interconnected smoke alarms, CO alarms, a 60-minute automatic shut-off valve on external propane grills, a combustible gas (propane) alarm, and — for properties of 3,600 sq ft or more — a compliant fire suppression system or an approved monitored fire alarm system with a siren throughout the home, with a May 1, 2027 compliance deadline for existing permit holders. There is no primary-residence requirement, no cap on the number of permits, no annual night cap, and no numeric occupancy formula in Town primary sources. Taxes: 5% SC sales tax + 2% SC state accommodations tax (7% combined statewide accommodations rate per SCDOR ST-575, which lists Hilton Head Island as "No Local Tax Imposed"), plus a Town-administered 3% on gross rental proceeds for stays under 90 days, allocated 1% Accommodations Tax and 2% Beach Preservation Fee, remitted quarterly to Town Revenue Services. Enforcement is active and escalating: a 24/7 STR Rapid Response Hotline (843-341-6864) with a dedicated dispatcher and six STR-dedicated FTEs, a public permits/violations dashboard, and a ladder of notice of violation, administrative citation and fine (Council authorized civil administrative citations on May 20, 2025), magistrate court summons, and STR Permit and/or Business License suspension or revocation for multiple violations.
Not legal advice. Last verified 2026-07-15 · sources linked below.
Requirements checklist
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city Short-Term Rental Permit Required
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city Town of Hilton Head Island Business License Required
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city Site plan (single-family dwellings) Conditional
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city HOA/POA letter of approval Conditional
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city STR permit number displayed in all advertisements Required
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city Responsible owner / Short-Term Rental Agent availability and 1-hour response Required
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city Permit issued to a natural person (no LLC/entity ownership on permit) Required
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city In-unit guest disclosures (contact info, noise rules, trash, pool/hot tub safety) Required
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city Fire and life-safety compliance (extinguishers, interconnected smoke alarms, CO alarms, egress) Required
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city Monitored fire alarm / fire suppression system for properties 3,600 sq ft or more Conditional
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city Propane grill 60-minute shut-off valve and combustible gas alarm Conditional
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city Certificate of Occupancy Conditional
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city Town Revenue Services accommodations tax account Required
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state SCDOR Retail License / accommodations tax registration Conditional
Taxes
| Tax | Rate | Administered by | Airbnb remits | Vrbo remits |
|---|---|---|---|---|
| South Carolina State Sales Tax | 5% | South Carolina Department of Revenue (SCDOR) | — | — |
| South Carolina State Accommodations Tax | 2% | South Carolina Department of Revenue (SCDOR); the 2% is distributed back to cities and counties by point of sale. | — | — |
| Town of Hilton Head Island Local Accommodations Tax | 1% | Town of Hilton Head Island Revenue Services Office (843-341-4677) | — | — |
| Town of Hilton Head Island Beach Preservation Fee | 2% | Town of Hilton Head Island Revenue Services Office (843-341-4677) | — | — |
Lodging-tax estimator
Estimate the combined transient/lodging tax (~10.0%) on a stay in Hilton Head Island. Estimate only — not tax advice.
Operating rules
- Primary residence
- No
- Min stay (nights)
- —
- Max nights / year
- —
- Max occupancy
- —
- Zoning-restricted
- No
- Cap on licenses
- No
Grandfathering: Existing permit holders whose properties are 3,600 sq ft or more have until May 1, 2027 to comply with the monitored fire alarm system requirement ('compliance deadline for this requirement for existing permit holders is May 1, 2027'). No other grandfathering or legal-nonconforming-use provision for STRs was found in Town primary sources; the October 2025 repeal-and-replace of Title 10, Chapter 2 took effect May 1, 2026 for all operators.
Zoning: No Town-wide zoning prohibition on short-term rentals appears in the Town's primary STR materials; the STR ordinance applies island-wide to 'privately owned residential property used as vacation homes and short-term rentals for a rental period of fewer than 30 days' (condominiums, villas, and single-family dwellings; timeshares and hotels excluded). IMPORTANT PRACTICAL CAVEAT: much of Hilton Head Island lies within private gated plantations/POAs (Sea Pines, Hilton Head Plantation, Palmetto Dunes, Port Royal, Wexford, Long Cove, Indigo Run, etc.) whose private covenants independently restrict or prohibit short-term rentals. The Town codifies this indirectly by requiring an HOA approval letter where applicable, so the binding constraint for many parcels is private covenant rather than Town zoning. Land Management Ordinance zoning districts were not separately reviewed for STR-specific overlays — flagged for follow-up.
- A short-term rental is defined by rental period, not by unit type: the ordinance 'applies to privately owned residential property used as vacation homes and short-term rentals for a rental period of fewer than 30 days.' The Town FAQ describes 'short-term as less than 30 days' covering condominiums, villas, and single-family dwellings, excluding timeshares/hotels.
- No minimum-stay floor is imposed by the Town: stays under 30 days are what trigger the permit, not what is prohibited. min_stay_nights set to null accordingly.
- No numeric occupancy cap (e.g., 2-per-bedroom-plus-2) appears in any Town primary source. The nearest quantitative limits are the parking cap and bedroom qualification rules: 'There is a maximum of six (6) vehicles allowed on driveway' and 'Bedrooms must meet building and safety codes and be primarily for sleeping rather than a living, dining or common space.' Because the permit fee is assessed per bedroom, bedroom count is the operative regulated quantity, but it is not converted into a headcount limit. max_occupancy_rule set to null rather than guessed.
- Parking: 'Owner shall provide guests with the number of 9 feet x 18 feet parking spots available on driveway (maximum of six) and ensure guests are not parking on grass or pine straw.' Spaces must be 9' x 18' and on improved surfaces.
- No cap on the total number of STR permits island-wide and no lottery/waitlist appears in Town primary sources; the Town's stated fee rationale is 'full cost recovery structure — meaning STR operations fund STR oversight,' which is inconsistent with a hard permit cap.
- No primary-residence, owner-occupancy, or hosted/unhosted distinction appears anywhere in the Town's STR ordinance materials, permit requirements, program page, or FAQ. Set to false based on the absence of any such provision across all reviewed primary sources, not on an affirmative quote.
- Permits are non-transferrable on sale: 'Short-term rental permits are non-transferrable, non-refundable, and only valid for the property that is issued the permit.' A new owner must obtain a new permit.
- Noise: nighttime hours are 10:01 pm to 6:59 am, but 'Town noise regulations are enforced 24 hours each day as established in Title 17, Chapter 4 of the Town Code.'
Enforcement
- Active enforcement
- yes
- Fines
- The Town applies an escalating enforcement ladder to STR violations: notice of violation, then administrative citation and fine, then magistrate court summons, and STR Permit and/or Business License suspension or revocation for multiple violations. On May 20, 2025 Town Council authorized the Community Code Enforcement Division to issue civil administrative citations and fines for Municipal Code violations as an alternative to criminal prosecution, expressly to strengthen enforcement of parking and short-term rental regulations. A separate $250 late fee applies to late permit renewals. Delinquent Town accommodations tax/beach preservation fee carries a penalty of 5 percent of the unpaid amount for each month past due until paid in full, plus a municipal summons. SPECIFIC DOLLAR FINE SCHEDULE NOT VERIFIED: widely reported third-party figures of $250 first offense / $500 second offense / $1,000 subsequent offenses, a 12-month reset, a $25 late fee on unpaid fines after 30 days, and revocation at three or more citations in 12 months could NOT be confirmed against any Town primary source (the full Title 10, Chapter 2 text is served only through Municode, which returned HTTP 403 to automated fetching). These amounts are deliberately excluded from the verified record — see verification_notes.
- Notes
- Enforcement posture shifted 'from complaint-based to performance-driven' with the FY2026 program expansion, which added six full-time STR-dedicated positions including a new 24/7 dispatcher. STR Rapid Response Hotline: 843-341-6864, staffed 24/7, accepts complaints related to noise, parking, or trash. Complaints are logged and routed in real time, the owner/agent is contacted immediately, Community Code Enforcement is notified, and matters escalate to the Beaufort County Sheriff's Office if necessary. This hotline pairs directly with the 1-hour agent response requirement, making that requirement practically enforceable. The Town publishes a public Permits & Violations Dashboard (ArcGIS) for compliance tracking — a strong signal of active, data-driven enforcement. Property inspections are conducted as part of compliance and code enforcement. Noise is enforced 24 hours a day under Title 17, Chapter 4 of the Town Code, not only during the 10:01 pm - 6:59 am nighttime window. Contact for STR program: STRPlan@hiltonheadislandsc.gov or 843-341-4740.
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Frequently asked questions
Is Airbnb legal in Hilton Head Island?
Do I need a license or registration for a short-term rental in Hilton Head Island?
What taxes apply to short-term rentals in Hilton Head Island?
Official sources
- government_program_page Short-Term Rental Permits — Town of Hilton Head Island ↗
- ordinance_summary Short-Term Rental Ordinance (incl. October 2025 New Additions) — Town of Hilton Head Island ↗
- government_program_page Short-Term Rental Permit Requirements — Town of Hilton Head Island ↗
- government_program_page Short-Term Rental (STR) Program — Town of Hilton Head Island ↗
- government_faq Short-Term Rental Frequently Asked Questions — Town of Hilton Head Island ↗
- government_program_page Short-Term Rental Fire Safety — Town of Hilton Head Island ↗
- government_program_page Short-Term Rental Permit Renewal — Town of Hilton Head Island ↗
- tax_authority Accommodations Tax & Beach Preservation Fees — Town of Hilton Head Island Revenue Services ↗
- government_press_release Hilton Head Island Advances Next Phase of Short-Term Rental Program (FY2026 fee change, March 2026 readings) ↗
- government_press_release Town Council May 20, 2025 Meeting Highlights (civil administrative citations authorized) ↗
- municipal_code Code of Ordinances, Town of Hilton Head Island, SC — Title 10, Chapter 2 (Short-Term Rentals) ↗
- tax_authority Accommodations — South Carolina Department of Revenue ↗
- tax_rate_chart SCDOR ST-575, South Carolina Sales Tax Rate by Municipality (Rev. 2/5/26) ↗
- census_geocoder US Census Bureau Geocoder — Hilton Head Island town, Beaufort County, SC (FIPS confirmation) ↗
Informational summary of publicly available sources; not legal advice. Verify against the linked official sources.