Hawaii Property Tax Calculator: This article from PM News briefs about Hawaii Property Taxes Calculator. At 0.27%, Hawaii’s property tax rate is the lowest in the country. Despite this, the average yearly tax payment in the state is substantially greater at $1,971. This is due to Hawaii having the highest median home value in the United States, which is $772,500.
No state in the union charges less in property taxes than Hawaii. 0.27% is the local average effective property tax rate. Despite Hawaii having the highest median house value of any state at approximately $772,500, the average homeowner only pays $1,971 in property taxes annually. Almost $800 less than the national average, to be exact.
Hawaii Property Taxes
Hawaii’s extensive exemptions for owner-occupied homes are a significant factor in the state’s low Hawaii Property Taxes. Depending on the county where they live, homeowners may be eligible for exemptions of up to $160,000.
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How Hawaii Property Taxes Work
Despite using similar procedures, Hawaii’s counties are solely in charge of managing and collecting Hawaii Property Taxes. The assessed value of a house in Hawaii is used to determine taxes in each county. Officials from each county appraise each residence in order to determine this. This calls for a personal visit to the home, particularly for new construction or recently renovated properties. Nonetheless, a bulk appraisal is conducted on the majority of other properties.
A mass assessment combines information on the neighborhood, the type of home, and other factors to evaluate many homes at once. Property owners receive yearly notices of assessment, which contain the assessed value of their property, once a year as part of this procedure. You can challenge the judgment by going through your local tax board if you disagree with its value.
Any available exemptions are deducted from the assessed value after it has been determined, and then tax rates are applied. The residence exemption is the most prevalent exemption. Vacation homes are not eligible because this is only offered for owner-occupied principal residences. The exemption is $100,000 in Honolulu County. You will only pay taxes on $30,000 of your home’s assessed value if you are eligible for the exemption and it is worth $400,000 in total.
Hawaii Property Tax Rates
County tax rates are displayed per $1,000 of taxable value. In Honolulu County, for instance, the residential rate is 3.5. This results in a tax rate of.0035 (3.5 times $1,000). If your home had a taxable value of $500,000 instead, your annual tax obligation would be $1,750.
Due to the fact that country-specific exemptions vary, comparing effective tax rates is useful. The county’s median annual tax as a percentage of the median dwelling value is known as the effective tax rate. The effective tax rates for each of Hawaii’s four inhabited counties are displayed in the table below, along with the most recent rates.
Hawaii’s notably low tax rates may have persuaded you to relocate here if the state’s constant sunlight wasn’t alluring enough. If you have the good fortune to be looking for a home in Hawaii, start by reading our guide on Hawaii mortgage rates. There, you’ll find all the information you need to know about mortgages in Hawaii so you can make an informed choice.
| County | Median Home Value | Annual Tax Payment | Average Tax Rate |
| Maui County | $657,400 | $1,376 | 0.21% |
| Honolulu County | $702,300 | $2,247 | 0.32% |
| Kauai County | $606,900 | $1,721 | 0.28% |
| Hawaii County | $364,100 | $1,408 | 0.39% |
Honolulu County
Almost 70% of Hawaii’s population resides in Honolulu County, which encompasses the whole Island of Oahu. Although the county’s property tax is only $3.50 per $1,000 of taxable property, the actual tax rate is even lower. Property taxes in Honolulu are $2,247 per year, or 0.32% of income, according to the average resident. That is equivalent to roughly 25% of the typical effective property tax rate in the US.
Honolulu County has low real estate taxes in part because many homes qualify for exemptions. As previously stated, every owner-occupied principal dwelling is eligible for the basic home exemption. It takes $100,000 off the taxable value.
A larger home exemption is available to seniors. You can assert additional rights as you age. To be qualified for the home exemption, you must submit an application to the Honolulu Real Property Assessment Division by September 30 of the year previous to your claim. Yet it only requires to be fulfilled once. If you are found to be eligible for the exemption, it will be automatically applied until you move.
Hawaii County
On the Big Island, the effective rate of property taxes is only 0.39 percent. The fact that Hawaii County homeowners who qualify for the homeowner exemption also qualify for a lower tax rate is one factor in the low rate. While the county’s ordinary residential rate is 11.10 cents per $1,000 of taxable value, properties worth more than $2 million are subject to a higher rate of 13.60 cents per $1,000.
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Maui County
If you want to relocate to Hawaii but don’t want to shell out a lot of money for property taxes each year, Maui County might be the best option. The huge homeowner exemption on Maui accounts for the extremely low rate. If you reside in Maui County and own and occupy your principal residence there, you are qualified for a $200,000 exemption off the assessed value of your property. Just $150,000 of your home’s assessed $350,000 value, for instance, would be subject to taxation.
Kauai County
With a 0.28 percent effective property tax rate, Kauai County covers the islands of Kauai, Niihau, Lehua, and Kaula. The typical annual property tax payment for a homeowner in Kauai County is $1,721. In Kauai County, homeowners who are eligible for the homeowner exemption also pay a lower tax rate. Each $1,000 of taxable value is subject to the full residential rate of 6.05.
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