How Property Tax is Calculated
Your property tax is determined by a simple formula that considers your property's value, its use, and any exemptions you qualify for.
(Assessed Value - Exemptions) × (Tax Rate / 1,000) = Annual Tax
- Assessed Value: The value of your property as determined by the county.
- Exemptions: Reductions in your property's assessed value, available primarily to homeowners.
- Tax Rate: The rate set by the county, which varies based on property classification.
County Tax Rates (FY 2025-2026)
Rates are per $1,000 of assessed value. Below are the most common classifications.
| County | Owner-Occupied Rate | Non-Owner-Occupied Rate | Commercial Rate |
|---|---|---|---|
| Honolulu | $3.50 | $4.50 (Tier 2 > $1M: $10.50) | $12.40 |
| Maui | $2.00 | $4.85 (Long-Term Rental) | $5.99 |
| Kauai | $3.05 | $5.05 (Residential Investor) | $7.35 |
| Hawaii | $6.15 | $11.10 (Residential Tier 2) | $10.70 |
Frequently Asked Questions
What is a "Homeowner Exemption"?
It's a significant reduction in the assessed value of a property for owners who use it as their primary residence ("homestead"). This is the single best way to lower your tax bill. All counties offer a basic exemption, with even larger exemptions available for seniors.
Why is the tax rate higher for rentals?
Counties use a lower tax rate for owner-occupied properties to encourage local homeownership. Investment or rental properties are classified differently and are taxed at a higher rate.
When are property taxes due?
Property tax bills are typically due in two installments, usually on August 20th and February 20th. Dates can vary, so always confirm with your local county tax office.
Can I appeal my property's assessed value?
Yes. If you believe your assessment is incorrect, you can file an appeal with your county's Board of Review. There are strict deadlines, so you must act quickly after receiving your assessment notice.
