Oahu Property Taxes for 2023-2024
The GREAT news...Oahu property taxes are low, if not the lowest in the US, and that's one thing that we don't often associate with Hawaii. Something is actually inexpensive in Hawaii! Residents who occupy their homes and condos as primary residences pay very little in property taxes on Oahu.
Primary Residence Home Exemption
Home Exemptions will also remain the same. Owner-occupants can apply for a home exemption to further lower the tax liability.
Basic Home Exemption - $100,000 - Owners who claim the basic home exemptions qualify for an $80,000 deduction from the assessed value of the property. Homeowners are then taxed on the balance.
65 Year and Older Exemption - $140,000 - Individuals 65 years or older on or before June 30 preceding the tax year for which the exemption is claimed, qualify for the $120,000 home exemption.
How Does a Home Exemption Work? When the property's value is assessed, $100,000 (or $140,000) will be deducted from the assessed value. The owner will be taxed on the balance. It is the owner's responsibility to file for the home exemption. Otherwise, it will not apply. For example, an owner who has a home assessed at $900,000 and a Home Exemption Claim of $100,000, will only have a total taxable amount of $800,000.
Honolulu County – Oahu Property Tax Rates
| July 1, 2023 - June 30, 2024 (Tax Rate Per $1,000 Net Taxable Property) | |
|---|---|
| Agricultural | $5.70 |
| Bed and Breakfast Home | $6.50 |
| Commercial | $12.40 |
| Hotel and Resort | $13.90 |
| Industrial | $12.40 |
| Preservation | $5.70 |
| Public Service | $0.00 |
| Residential | $3.50 |
| Residential A – Tier 1 (Applied to the net taxable value of the property up to $1,000,000) | $4.50 |
| Residential A – Tier 2 (Applied to the net taxable value of the property in excess of $1,000,000) | $10.50 |
| Vacant Agricultural | $8.50 |
"Residential A”, in a nutshell, are properties that are not owner-occupied.
- Residential lots with no more than two single-family dwelling units, that is zoned R-3.5, R-5, R-7.5, R-10 or R-20 or dedicated for residential use, and do not have a home exemption.
- Vacant land zoned R-3.5, R-5, R-7.5, R-10 or R-20
- Condominium units that do not have a home exemption.
How are Oahu Property Tax Rates for Res-A Properties Calculated?
Residential A - Mary owns a 2nd home that she rents out to long-term tenants. Since this home is not owner-occupied, she is not able to claim the Home Owner Exemption like the one that she is claiming on the home she lives in. This 2nd home Mary rents out is tax assessed at $1,700,000. The first $1,000,000 of assessed value under Residential A - Tier 1 rates, is calculated at $4.50 per $1,000. This portion is $4,500. Residential A - Tier 2 rates apply to the remaining $700,000, which is calculated at $10.50 per $1,000. This portion works out to $7,350. The total on the 2nd home that Mary rents out based on the Oahu Property Tax Rates for Residential A properties is $11,850 ($4,500+$7,350). If Mary was to move into the home and claim it as an owner-occupied property with $100,000 Home Owner Exemption, her property taxes would be $1,6000,000 x $3.50 / $1,000, for a total of $5,600 in annual property taxes on Oahu. Please contact Honolulu County for more information on real property tax payment options, and consult your accountant. The above information is for general purposes only.
If you have questions about Oahu real estate, please don't hesitate to contact me.
