Thinking about buying property in Hawaii? One of the biggest ongoing costs you’ll face is property tax. The good news: Hawaii has the lowest effective property tax rate in the entire United States, hovering around 0.27%. The not-so-good news: sky-high property values mean your actual bill can still be significant.
Here’s what makes Hawaii’s system unique: property taxes are handled at the county level, not by the state. That means rates vary depending on which island you live on, how your property is classified, and whether you qualify for homeowner exemptions. Let’s break it all down for the 2026–2027 fiscal year.
Updated August 2026 — all FY2026–27 rates confirmed: All four county rate schedules below reflect the 2026–27 fiscal year (July 1, 2026 – June 30, 2027), sourced from the Hawaii Real Property Assessment Division statewide tax-rates report (July 2026). For the most current figures, verify with your county: Honolulu, Maui County, Hawai‘i County, or Kauai.
How Hawaii Property Taxes Are Calculated
The formula is straightforward:
Property Tax = (Net Assessed Value / 1,000) x Tax Rate
Each county assesses your property’s market value annually. After subtracting any exemptions, the remaining taxable value is multiplied by the rate assigned to your property’s classification. Rates are expressed per $1,000 of assessed value.
For example, if your home is assessed at $700,000 with a $100,000 homeowner exemption and a rate of $3.50 per $1,000, your annual tax would be: (600,000 / 1,000) x $3.50 = $2,100.
Oahu Property Tax Rates (City and County of Honolulu)
Oahu is home to roughly 70% of Hawaii’s population. Honolulu keeps things relatively simple for residents: owner-occupied homes that have filed a home exemption fall in the flat Residential class, while non-owner-occupied properties assessed at $1 million or more are pushed into the higher Residential A class. Rates below are for the 2026–2027 fiscal year (July 1, 2026 – June 30, 2027).
| Property Class | Rate per $1,000 |
|---|---|
| Residential (homes with a home exemption) | $3.50 |
| Residential A – Tier 1 (portion up to $1M) | $4.00 |
| Residential A – Tier 2 (portion over $1M) | $11.40 |
| Bed and Breakfast Home | $6.50 |
| Transient Vacation – Tier 1 (first $800,000) | $9.00 |
| Transient Vacation – Tier 2 (over $800,000) | $11.50 |
| Hotel and Resort | $13.90 |
| Commercial | $12.40 |
| Industrial | $12.40 |
| Agricultural | $5.70 |
| Vacant Agricultural | $8.50 |
The big takeaway on Oahu: if you own and occupy your home and file the home exemption, you pay the flat Residential rate of $3.50 per $1,000. A second home or investment property assessed at $1 million or more falls into Residential A, where the portion above $1 million is taxed at $11.40 per $1,000 – more than triple the owner-occupied rate. Honolulu clearly incentivizes owner-occupancy.
Maui County Property Tax Rates (Maui, Molokai, Lanai)
Maui County covers three islands and has some of the highest rates for short-term rentals and non-owner-occupied properties in the state.
| Property Class | Rate per $1,000 |
|---|---|
| Owner-Occupied – Tier 1 (up to $1.5M) | $1.65 |
| Owner-Occupied – Tier 2 ($1.5M–$4.5M) | $1.80 |
| Owner-Occupied – Tier 3 (over $4.5M) | $5.00 |
| Non-Owner-Occupied – Tier 1 (up to $1M) | $6.25 |
| Non-Owner-Occupied – Tier 2 ($1M–$2.5M) | $9.00 |
| Non-Owner-Occupied – Tier 3 (over $2.5M) | $17.00 |
| TVR / Short-Term Rental – Tier 1 (up to $900K) | $13.00 |
| TVR / Short-Term Rental – Tier 2 ($900K–$3M) | $15.00 |
| TVR / Short-Term Rental – Tier 3 (over $3M) | $17.00 |
| Long-Term Rental – Tier 1 (up to $1.5M) | $2.90 |
| Long-Term Rental – Tier 2 ($1.5M–$3M) | $5.00 |
| Long-Term Rental – Tier 3 (over $3M) | $8.50 |
| Hotel and Resort | $11.80 |
| Agricultural | $5.74 |
| Apartment | $3.50 |
| Commercial | $6.05 |
| Time Share | $14.90 |
Maui’s tiered system hits especially hard on vacation rentals and luxury non-owner-occupied properties. A $4 million short-term rental faces $13.00 per $1,000 on the first $900K, $15.00 on the $900K–$3M portion, and $17.00 above $3M — among the highest vacation-rental tax rates in the state.
Hawaii County Property Tax Rates (Big Island)
The Big Island uses a simpler classification system without tiers for most categories. It’s generally the most affordable county for homeowners. The rates below are the 2026–27 rates adopted by the Hawai‘i County Council on May 21, 2026 (Resolution 574-26), effective July 1, 2026.
| Property Class | Rate per $1,000 |
|---|---|
| Homeowner / Owner-Occupied | $5.75 |
| Affordable Rental Housing | $5.75 |
| Long-Term Rental (new class) | $7.75 |
| Residential (Non-Owner) – Tier 1 (up to $2M) | $11.10 |
| Residential (Non-Owner) – Tier 2 ($2M–$4M) | $14.50 |
| Residential (Non-Owner) – Tier 3 (over $4M) | $17.00 |
| Apartment | $11.70 |
| Hotel and Resort | $11.55 |
| Conservation | $11.55 |
| Commercial | $10.70 |
| Industrial | $10.70 |
| Agricultural / Native Forest | $9.35 |
The Big Island’s homeowner rate of $5.75 looks higher than Oahu’s $3.50, but remember: property values on the Big Island are dramatically lower. The median home price in Hilo runs around $400,000-$500,000 compared to $800,000+ in Honolulu. The median annual property tax in Hawaii County is about $1,619, roughly $781 less than the national median.
What changed for FY2026–27: the table above reflects the rates the Hawai‘i County Council adopted on May 21, 2026 (Resolution 574-26), effective July 1, 2026. The homeowner/primary-residence rate dropped from $5.95 to $5.75, a new long-term rental class was set at $7.75, and the second-home (non-owner residential) structure was expanded to three tiers – up to $2M at $11.10, the $2M–$4M portion at $14.50, and the portion above $4M at $17.00. Commercial and industrial both sit at $10.70. The prior homeowner rate of $5.95 applied through June 30, 2026.
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Kauai County Property Tax Rates
Kauai offers competitive rates for owner-occupants and has its own tiered system for investment and vacation rental properties.
| Property Class | Rate per $1,000 |
|---|---|
| Owner-Occupied (Homestead) | $2.59 |
| Long-Term Affordable Rental | $2.59 |
| Owner-Occupied Mixed-Use | $5.05 |
| Residential (Non-Owner) – Tier 1 (up to $1.3M) | $5.45 |
| Residential (Non-Owner) – Tier 2 ($1.3M–$2M) | $6.05 |
| Residential (Non-Owner) – Tier 3 (over $2M) | $9.40 |
| Agricultural | $6.75 |
| Conservation | $6.75 |
| Commercial | $8.10 |
| Industrial | $8.10 |
| Vacation Rental – Tier 1 (up to $1M) | $11.30 |
| Vacation Rental – Tier 2 ($1M–$2.5M) | $11.75 |
| Vacation Rental – Tier 3 (over $2.5M) | $12.20 |
| Hotel and Resort | $11.75 |
Kauai’s homestead rate of $2.59 is very reasonable. The island also breaks out vacation rentals as a separate class, reflecting how seriously the Garden Isle takes short-term rental regulation.
Homeowner Exemptions by County
Every county offers exemptions that reduce your taxable assessed value if you live in your home as your primary residence. These can save you hundreds or even thousands of dollars per year.
| County | Standard Exemption | Senior Exemption (65+) |
|---|---|---|
| Honolulu (Oahu) | $120,000 | $160,000 (65+) |
| Maui | $300,000 | Up to $300,000 |
| Hawaii (Big Island) | $50,000 | Up to $100,000 (70+) |
| Kauai | $160,000 | Up to $240,000 (70+) |
To qualify, you must file a homeowner exemption claim with your county and occupy the property as your primary residence. Most counties also offer additional exemptions for disabled veterans, totally disabled individuals, and low-income homeowners. Filing deadlines are typically in September for the following tax year.
Honolulu exemption increase — effective July 1, 2027: The Honolulu City Council passed legislation (Bills 49 & 50, 2025) raising the Oahu home exemption to $140,000 (standard) and $180,000 (age 65+), up from the current $120,000 and $160,000. These higher amounts take effect for the FY2027–28 tax year (July 1, 2027). If you are purchasing a home on Oahu and have not yet filed a home exemption, file by September 30, 2026 to secure your exemption for FY2027–28. File at Honolulu RPAD. Existing exemption holders do not need to refile — the increase applies automatically.
If you’re planning your move, our guide on how much money you need to move to Hawaii covers all the costs you should budget for, including property taxes.
Real-World Tax Calculations
Let’s run through some realistic scenarios so you can see what actual homeowners pay:
Scenario 1: Oahu Condo in Kakaako ($850,000)
- Owner-occupied Residential rate: $3.50 per $1,000
- Homeowner exemption: $120,000
- Taxable value: $730,000
- Annual tax: (730 x $3.50) = $2,555/year
Scenario 2: Big Island Home in Kailua-Kona ($550,000)
- Owner-occupied homeowner rate: $5.75 per $1,000
- Homeowner exemption: $50,000
- Taxable value: $500,000
- Annual tax: (500 x $5.75) = $2,875/year
Scenario 3: Maui Investment Property in Kihei ($1,500,000)
- Non-owner-occupied, tiered rates
- No homeowner exemption (not primary residence)
- Non-Owner-Occupied Tier 1 ($1M at $6.25) + Tier 2 (remaining $500K at $9.00)
- Tax: (1,000 x $6.25) + (500 x $9.00) = $6,250 + $4,500 = $10,750/year
Scenario 4: Kauai Vacation Rental in Poipu ($2,200,000)
- Vacation rental, split across tiers
- Tier 1 (up to $1M): 1,000 x $11.30 = $11,300
- Tier 2 ($1M-$2.5M): 1,200 x $11.75 = $14,100
- Annual tax: $25,400/year
As you can see, the difference between owner-occupied and investment property taxation is massive. If you’re considering retiring in Hawaii, the owner-occupied rates and senior exemptions make homeownership quite affordable compared to many mainland states.
Property Tax Payment Schedule
All four counties bill property taxes in two installments:
- First half: Due August 20
- Second half: Due February 20
Late payments incur a 10% penalty plus interest. Every county offers online payment through their real property tax websites. If you have a mortgage, your lender likely escrows property taxes into your monthly payment.
How to Appeal Your Property Assessment
If you think your property has been over-assessed, you can appeal. Each county has a Board of Review that handles appeals. Here’s the general process:
- Review your assessment notice (mailed annually, usually in March)
- Compare with recent sales of similar properties in your area
- File an appeal by the deadline (typically April for most counties)
- Present your case to the Board of Review with comparable sales data
It’s worth doing if you believe your assessment is significantly higher than market value. Many homeowners have successfully reduced their assessments by 10-20%.
Tips for Reducing Your Hawaii Property Tax Bill
- File for homeowner exemption immediately after purchasing – this is the single biggest savings
- Check if you qualify for senior or disability exemptions
- Review your assessment annually and appeal if it seems too high
- Consider which county you buy in – rates and exemptions vary significantly
- If renting out long-term, Maui’s long-term rental rate (from $2.90) is substantially lower than short-term rental ($13.00–$17.00 across tiers)
Understanding the full cost of utilities in Hawaii alongside property taxes gives you a clearer picture of total homeownership expenses. And if you’re still deciding which island is right for you, our cheapest places to live in Hawaii guide compares costs across all four counties.
Frequently Asked Questions
Does Hawaii have the lowest property tax in the US?
Yes. Hawaii consistently ranks as the state with the lowest effective property tax rate in the country, averaging around 0.27%. However, because home values are among the highest nationally, actual dollar amounts can still be substantial. A $900,000 home on Oahu with owner-occupied rates would pay about $1,440 per year, which is lower than what most mainland homeowners pay on properties worth half as much.
How much is property tax on a $500,000 home in Hawaii?
It depends on the county and whether you live there. On the Big Island with the homeowner rate ($5.75 per $1,000) and a $50,000 exemption, you’d pay about $2,588 per year. On Oahu at the flat owner-occupied Residential rate ($3.50 per $1,000) with the $120,000 home exemption, you’d pay about $1,330 per year. Non-owner-occupied rates would be significantly higher.
When are Hawaii property taxes due?
Property taxes are due in two installments: the first half by August 20 and the second half by February 20. Late payments are subject to a 10% penalty plus interest charges. Most mortgage lenders include property taxes in your monthly escrow payment.
Do non-residents pay more property tax in Hawaii?
Yes. Non-residents who own property in Hawaii typically fall into higher tax classifications like “Residential A” on Oahu or “Non-Owner-Occupied” in other counties. These rates can be two to six times higher than owner-occupied rates, depending on the county and property value tier.
