Hilton Head Island, South Carolina

Short term rentals are permitted on Hilton Head Island. The Town requires an annual STR permit plus an active Town business license. Since 2025 the permit fee is $150 per bedroom, replacing the old flat $250 fee, so a 2 bedroom home pays $300. The permit period now runs to a deadline of April 30 or May 15, and the portal opened April 6, 2026. Rules effective around May 1, 2026 require applications in an individual’s name rather than a corporate entity, the permit number in all advertising, and HOA approval letters. There is no owner occupancy requirement, no primary residence requirement, and no annual night cap. Properties inside HOAs or private communities such as Sea Pines must provide a letter confirming rentals are allowed, so private covenants can restrict operation. Operators collect lodging taxes of about 11%, made up of 7% state sales and accommodations tax, 3% Town local accommodations tax and 1% Beaufort County, plus the Town Beach Preservation Fee, and file returns quarterly. Operating rules include a contact reachable 24 hours a day who responds to complaints within 60 minutes, a maximum of six parking spaces, and required smoke and carbon monoxide detectors. Enforcement is rated moderate. Fines are $250, $500 and $1,000 for first, second and subsequent offenses, and a permit can be revoked after three citations within 12 months. These rules apply to the Town of Hilton Head Island and not to neighboring towns. Confirm current requirements with the Town before buying.