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Guide to Property Tax on Oahu, Hawaii

Table of Contents

Honolulu County (Oahu Island) Property Tax Rates

Tax Rate Table

TypePer $1000 Net Tax Value% of Net Tax Value
Residential (Principal Residence)$3.500.35%
Residential A (Up to $1 Million)$4.500.45%
Residential A (Marginal Above $1 Million)$10.501.05%
Bed & Breakfast$6.500.65%
Hotel/Resort$13.901.39%
Agricultural$5.700.57%
Agricultural - Vacant$8.500.85%

Home Exemption

Property owner’s who reside in the property as their “principal home” can file for a Home Exemption which can be used to reduce the Net Taxable Value of the property.

Intent to reside in the property as your “principal home” can be indicated by:

  1. Occupying the property at least 270 days of the calendar year.
  2. Being registered to vote in Honolulu
  3. Filing an income tax return in Hawaii
 
The amount of the Home Exemption varies by age of the claimant as follows
  • Under 65: $100,000
  • 65 – 79: $140,000
  • 80 – 84: $160,000
  • 85 – 89: $180,000
  • Over 90: $200,000

Residential: 0.35%

The residential tax rate of 0.35% covers all properties that are used as the homeowner’s principal residence, no matter the assessed value of the property.

Residential A (Tier 1 & 2): 0.45% (Under 1m) + 1.05% (Over $1m)

Properties without a Home Exemption, being either a rental/investment property or a 2nd home, are taxed at the higher “Residential A” rate. For these properties the first $1 Million of taxable value is taxed at a rate of 0.35%, marginal value above the first $1 Million of taxable value is taxed at a rate of 1.05%

For Example: If Bob owns a 2nd home with a Taxable Value of $1.2 Million. His property tax is calculated as follows…

$1,000,000 x 0.45% (0.0045) = $4,500

$1,200,000 – $1,000,000 = $200,000 * 1.05% (0.0105) = $2,100

$4,500 + $2,100 = $6,600

Hotel / Resort: 1.39%​

Properties that are classified as “Hotel/Resort” are subject to a property tax of $13.90 per $1000 of assessed value (or 1.39% of assessed value. Owner occupants that reside in the property as a primary residence can, however, apply for a waiver to pay the Residential Rate.

Bed & Breakfast: 0.65%​

For the last few years the City and County of Honolulu have been debating on changes to the island’s Vacation Rental laws (Airbnbs, VRBOs and classic Bed & Breakfasts). Recently they’ve decided to institute a new tax rate for properties that apply for Bed & Breakfast licenses.  This program is still being developed and hasn’t been implemented yet.

Assessed Value

How Assessed Value is Determined

Every year a appraiser from the tax office will analyze 5 comparable properties sold prior to July 1 of that year. They do not conduct in person appraisals.

Contesting Assessed Value

If you disagree with the assessed value calculated for your property you can file an appeal, however you will need evidence to back up your claim. Properties currently listed on the market will not suffice, you’ll need historical sales data of similar properties.

Paying Real Property Taxes

In Honolulu County, Real Property Taxes are due twice a year and can be paid 4 different ways.

Real Property Tax Due Dates​

  1. Due August 20 (for period from July 1 – December 31). Bill mailed in July.
  2. Due Feb 20 (for period from January 1 – June 30). Bill mailed in January.

Ways to Pay Real Property Taxes

There are 4 ways to pay your Real Property Taxes as follows:
  1. Online at hnlpay.com, in which you can pay with a credit card (2.35% fee) or debit card (1% fee)
  2. Phone at 1 (877) 309-9117
  3. Mail with a check made out to “City & County of Honolulu” sent toReal Property Tax Collection Division of Treasury P.O. Box 4200 Honolulu, HI 96812
  4. In Person with cash or check made out to “City & County of Honolulu” atHonolulu City Hall 530 S King St #115 Honolulu, HI 96813 Open Monday-Friday 7:50am – 4:15pm

Late Payment Penalty

A late payment penalty of 1% per month will be assessed on all late payments and pentalties.

Real Property Tax Credit

The City & County of Honolulu also offers a tax credit for homeowners that meet the following 4 requirements:

  1.  Must have a homeowner’s exemption in effect at the time of application as well as from the July 1, 2022 to June 30, 2023 tax year
  2. No person on the title can own any other real property
  3. The combined gross income of the titleholders for the 2021 tax year can not exceed $100,000 for those under 60 and $140,000 for those over 65
  4. Application cannot be fraudulent or violate any city & county laws

The tax credit equals the difference between the assessed value of the property and 3% of all titleholders gross income.

Additional Resources

City & County of Honolulu’s Tax Records Website
You can use this website to look into the tax history as well as leans, assessed values and permitted improvements.

Disclaimer: Information on this website may not always be up to date

The content provided on this website is intended for general informational purposes only. While we strive to ensure the accuracy and timeliness of the information presented, we cannot guarantee that all the information provided is up to date at all times.