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Hawaii Property Tax 2026 — Lowest Rate, High Values

Daniel · CountryTaxCalc Updated June 2026
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At a glance

Key Facts

Hawaii effective property tax rate
0.29% statewide average (lowest in US)
Median home value (Hawaii)
Approximately $828,000 (Zillow mid-2026)
Median annual property tax bill
Approximately $2,150–$2,400
Property tax administered by
Counties (not state) — 4 counties: Honolulu, Maui, Hawaii County, Kauai
Homeowner exemption (Honolulu)
$100,000 reduction in assessed value for owner-occupants
Introduction
Hawaii has the lowest nominal property tax rate in the United States — approximately 0.29% of assessed value statewide (individual counties range from about 0.27% to 0.35%). But Hawaii's sky-high home values mean actual tax bills are still significant. The median home value in Hawaii exceeds $800,000, making the average annual property tax bill approximately $2,150–$2,400 — low compared to mainland states but reflecting high acquisition costs. This guide covers Hawaii's four-county property tax system, classification rates, and available tax relief programs.
Section 01

How Hawaii Property Tax Works

Unlike most US states, Hawaii's property tax is administered entirely at the county level — there is no statewide property tax. The four counties (City & County of Honolulu on Oahu, Maui County, Hawaii County/Big Island, and Kauai County) each set their own rates and assessment schedules. Rates vary by property classification: residential, vacation rental, hotel/resort, commercial, industrial, and agricultural. Owner-occupied residential properties receive the lowest rates; vacation/short-term rental properties face significantly higher rates — this is intentional policy to incentivize owner-occupancy and housing affordability.
Section 02

County Property Tax Rates (2025–2026 Fiscal Year)

Honolulu (Oahu): Owner-occupied residential: $3.50 per $1,000 assessed value (0.35%); Residential (non-owner): $11.40 per $1,000 (1.14%); Vacation rental/B&B: $10.70 per $1,000. Maui County: Residential: $5.96 per $1,000; Short-term rental: $13.56 per $1,000. Hawaii County (Big Island): Residential (owner-occupied): $6.15 per $1,000; Residential non-owner: $11.10 per $1,000. Kauai County: Residential (homestead): $3.05 per $1,000; Residential non-homestead: $7.95 per $1,000. These rates are approximations — verify current rates with each county's Real Property Tax office as rates are set annually by county council.
Section 03

Homeowner Exemptions

Owner-occupants (homestead owners) in Hawaii receive significant assessment exemptions. Honolulu (Oahu): $100,000 homeowner exemption (increases to $140,000 for homeowners age 65+). On a $700,000 assessed value, the exemption reduces taxable assessed value to $600,000. Tax at $3.50/1,000: $2,100/year. Maui County: Homeowner exemption of $200,000 for primary residents. Kauai County: Homeowner exemption of $160,000 for homestead property. Hawaii County: Homeowner exemption of $40,000 base, up to $80,000 for seniors. These exemptions only apply to the owner's primary residence — second homes, vacation rentals, and investment properties receive no homestead exemption.
Section 04

Short-Term Rental Surcharges

Hawaii counties have sharply increased property tax rates on vacation rentals and short-term rental (STR) properties (Airbnb, VRBO) in recent years, responding to housing affordability concerns. In Honolulu, STR properties are taxed at $10.70 per $1,000 — three times the owner-occupant rate. Maui STRs face $13.56/$1,000. On a $700,000 STR property in Honolulu, annual property tax is approximately $7,490/year vs $1,750 for the same value owner-occupied. This significant differential is intended to discourage conversion of residential housing to tourist rentals. New STR registration requirements and caps further restrict this market.
Section 05

Hawaii vs Other Low Property Tax States

Hawaii's 0.29% effective rate is the lowest in the US — significantly below Alabama (0.37%), Louisiana (0.55%), and even Wyoming (0.53%). However, the dollar-amount comparison versus the mainland is misleading. A $350,000 home in Alabama paying 0.37% = $1,295/year. A $828,000 home in Hawaii paying 0.29% = $2,401/year. The absolute dollar amount paid in Hawaii is higher than many "high rate" states because of home values. Use our Property Tax Calculator by State to compare total annual property tax bills across all 50 states based on your target purchase price.
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FAQ

Frequently Asked Questions

Why is Hawaii's property tax rate so low?

Hawaii funds its public services primarily through its state income tax (one of the highest in the US, with rates up to 11%) and general excise tax (a broad-based consumption tax effectively functioning as a high sales tax). The state deliberately keeps property taxes low to maintain competitive real estate markets and avoid burdening homeowners. The four counties supplement their budgets with county-level property taxes but have kept rates low historically.

How is my Hawaii property assessed?

Hawaii counties assess properties at 100% of fair market value annually. Unlike California (Prop 13 limits assessment growth to 2% annually), Hawaii reassesses properties to market value every year. This means rapidly appreciating Hawaii real estate generates increasing tax bills each year. There is no Prop 13-style cap — your property tax bill rises with home values.

Can I deduct Hawaii property taxes on my federal return?

Yes. Hawaii property taxes are deductible under the SALT deduction on Schedule A if you itemize. Under current law (OBBBA), the combined SALT deduction cap is $40,000 (MFJ) / $20,000 (single) for 2025–2029. For most Hawaii homeowners paying $2,000–$4,000 per year in property tax, this cap is rarely an issue (especially with no state income tax comparable to California or New York to compete for the SALT cap).

Is there a property tax freeze for seniors in Hawaii?

Hawaii counties offer enhanced exemptions for seniors rather than a true property tax freeze. Honolulu provides an increased exemption of $140,000 (vs $100,000 for younger homeowners) for those 65+. Maui provides tiered exemptions based on age. These reduce the taxable assessed value but do not freeze the tax bill — if assessed values rise significantly, the bill still increases. A true freeze (as in Texas for seniors over 65) does not exist in Hawaii as of 2026.
Disclaimer:This guide is for educational purposes only and does not constitute tax, legal, or financial advice. Hawaii county property tax rates are set annually and may change. The rates cited are approximations for the 2025–2026 fiscal year — verify current rates with the relevant county Real Property Tax office before making financial decisions. Home value estimates are from third-party sources and do not constitute appraisals.
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