WHAT YOU NEED TO KNOW ABOUT PROPERTY TAXES

How Property Taxes are Determined in Hawaii County in 2023

When you purchase a property in Hawai’i, you will get a new tax rate. Property taxes are calculated by multiplying the assessed value of a property by the tax rate. But there are exemptions you can apply for to lower your tax rate. Keep reading to find out more.

ASSESSED VALUE

The assessed value of a property is its estimated fair market value, which is determined by the Hawaii County Real Property Assessment Division. The assessment division considers a number of factors when determining the assessed value of a property, including the property's location, size, age, condition, and recent sales of similar properties in the area.

TAX RATES

The tax rate for a property depends on the property's classification. Hawaii County has seven property classifications and the tax rate for each classification is set by the Hawaii County Council each year. In 2023, the tax rates for the different property classifications are as follows:

PROPERTY CLASSIFICATIONS + TAX RATES

Affordable Rental Housing - 0.615%

Residential (portion valued less than $2 million) - 1.110%

Residential (portion valued at $2 million and more) - 1.360%

Apartment - 1.170%

Commercial - 1.070%

Industrial - 1.070%

Agricultural and Native Forest - 0.935%

Conservation - 1.155%

Hotel/Resort - 1.155%

Homeowner - 0.615%

https://www.hawaiipropertytax.com/tax_rates.html

HOMEOWNER EXEMPTION

Hawaii County offers a homeowner exemption to certain homeowners. The homeowner exemption reduces the assessed value of a property by up to $100,000, which can result in significant savings on property taxes. To qualify for the homeowner exemption, a homeowner must:

Occupy the property as their primary residence for 200+ days out of the calendar year
The ownership is recorded at the Bureau of Conveyances or Land Court in Honolulu on or before December 31 preceding the tax year for which the exemption is claimed or by June 30.
You must file the form, RP Form 19-71, with the Real Property Tax Division on or before December 31 preceding the tax year for the first half payment or June 30 for the second half payment.
You have filed a State of Hawai‘i Resident Income Tax Return (N-11) within the last 12 months or have requested a waiver from this requirement for one of the following reasons: You are a new resident to the State of Hawai‘i and will file a State of Hawai‘i Resident Income Tax Return (N-11) within the next 12 months or you are not required to file under State of Hawai‘i Income Tax Law and not required to file income tax in any other jurisdiction other than at the U.S. Federal level and understand that you are required to refile this waiver every three (3) years.

EXEMPTIONS

Under 60 years old - $50,000

60-64 years old - $85,000

65-69 years old - $90,000

70-74 years old - $105,000

75 and over - $110,000

An additional exemption of 20% of the assessed value of the property not to exceed $100,000

Links below to the Home Exemption Brochure and fillable Home Exemption Form.

Hawai’i Home Exemption Program

Home Exemption Form

WHAT DO PROPERTY TAXES PAY FOR IN HAWAI’I COUNTY?

Property taxes in Hawaii County in 2023 pay for a variety of important services, including education, public safety, transportation, health and human services, and other government services.

In 2023, the Hawaii County Council allocated the following percentages of property tax revenue to each expenditure category:

Education: 33.33%
Public Safety: 26.67%
Transportation: 20.00%
Health and Human Services: 13.33%
Other: 6.67%

These percentages are based on the estimated needs of the county and the amount of property tax revenue that is expected to be collected in 2023.

HOW TO PAY PROPERTY TAXES

Property taxes in Hawaii County are paid in two installments, due on August 20 and February 20. Property owners can pay their taxes online, by mail, or in person at the Hawaii County Finance Department.

If you have any questions about your property tax assessment or how to pay your property taxes, you can contact the Hawaii County Real Property Assessment Division at (808) 961-8211.