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Property Tax in Hawaii: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Hawaii has the lowest effective property tax rate in the nation at approximately ~0.27%, despite having some of the highest home values in the country. The state’s four counties (Honolulu, Maui, Hawaii, and Kauai) each set their own tax rates and classifications, with rates varying based on property use. Owner-occupied residential properties receive the most favorable rates, while investment properties, commercial properties, and short-term vacation rentals face significantly higher rates. Hawaii’s property tax system is entirely county-administered, with no state-level property tax.

Hawaii Property Tax Rates (2026)

Metric	Rate / Amount
Average effective rate	~0.27%
National average effective rate	~0.99%
Median home value	~$850,000
Median annual property tax	~$2,295

Honolulu County Rates by Classification

Property Classification	Rate per ~$1,000
Residential (owner-occupied)	~$3.50
Residential (non-owner-occupied)	~$10.50
Commercial	~$12.40
Hotel and resort	~$13.90
Industrial	~$12.40
Agricultural	~$5.70
Conservation	~$5.70
Vacant residential	~$10.50

Effective Rates by County

County	Owner-Occupied Rate	Median Tax Paid
Honolulu	~0.28%	~$2,500
Maui	~0.23%	~$2,200
Hawaii (Big Island)	~0.28%	~$1,500
Kauai	~0.24%	~$1,900

How Hawaii Property Tax Works

County-Based System

Hawaii’s property taxes are administered entirely by the four counties. There is no state property tax. Each county sets its own classifications, rates, and exemption levels, creating variation across the islands. Honolulu County (City and County of Honolulu) encompasses all of Oahu and accounts for the majority of the state’s property tax revenue.

Tiered Rate System

Hawaii’s classification system creates dramatically different effective rates depending on how a property is used:

Owner-occupied residential: The lowest rate, reflecting the state’s policy of keeping housing costs manageable for residents
Non-owner-occupied residential: Approximately three times the owner-occupied rate, targeting investment properties and second homes
Short-term vacation rentals: Subject to the highest applicable rate in most counties, plus transient accommodations tax
Commercial and hotel: Higher rates that generate significant revenue from tourism-related properties

Assessment at 100% Market Value

All Hawaii property is assessed at 100% of fair market value. County assessors update values annually based on market conditions, comparable sales, and other valuation methods.

Exemptions and Relief Programs

Home Exemption: Owner-occupants who claim their property as their primary residence receive a home exemption that reduces the assessed value. In Honolulu, the exemption is approximately ~$100,000 for homeowners under 65 and ~$140,000 for those 65+.
Disabled Veterans: Qualifying veterans with 100% disability receive a full property tax exemption on their primary residence in most counties.
Low-Income Exemption: Additional exemption amounts are available in some counties for homeowners with lower incomes.
Agricultural Use Dedication: Properties dedicated to agricultural use may qualify for the lower agricultural classification rate.
Kama’aina (Long-Term Resident) Rates: The owner-occupied rate inherently favors long-term residents over nonresident property owners.

Comparison to National Average

Metric	Hawaii	National Average
Average effective rate	~0.27%	~0.99%
Median annual tax paid	~$2,295	~$2,700
Median home value	~$850,000	~$300,000
Assessment basis	100% of market value	Varies

Hawaii’s effective rate is approximately 73% below the national average, but exceptionally high property values mean actual dollar amounts paid are only moderately below the national median. The low rate partially offsets the state’s high income tax and cost of living.

Tips for Minimizing Hawaii Property Tax

Claim the home exemption. Owner-occupants must apply for the home exemption to receive the reduced residential rate and assessed value reduction. This is not automatic and must be renewed if your circumstances change.
Verify your property classification. Ensure your county has correctly classified your property. Being classified as non-owner-occupied when you actually live there can triple your tax rate.
Apply for the senior exemption. Homeowners 65+ receive enhanced home exemptions in most counties (~$140,000 vs. ~$100,000 in Honolulu).
Appeal your assessed value. If comparable sales suggest your assessment is too high, file an appeal with your county’s Board of Review. Deadlines vary by county (typically within 30 days of the assessment notice).
Understand vacation rental classification. If you use your property for short-term rentals, it may be reclassified at a higher rate. Review county rules before listing your property.
Explore agricultural dedication. If your property qualifies for agricultural use, the lower classification rate can provide substantial savings.
Monitor county rate changes. Each county sets rates independently and can adjust classifications annually. Stay informed about budget decisions that affect rates.

Key Takeaways

Hawaii has the lowest effective property tax rate nationally at approximately ~0.27%
Rates vary dramatically by property classification, with owner-occupied residential receiving the most favorable treatment
High home values mean actual tax bills are moderate despite the low effective rate
The home exemption must be claimed and provides ~$100,000-$140,000 reduction in assessed value
Non-owner-occupied and investment properties face rates approximately three times higher than owner-occupied
All four counties set their own rates and classifications independently

Next Steps

State Income Tax Rates Comparison 2026 — See how Hawaii’s high income tax offsets low property taxes.
Federal Income Tax Guide 2026 — Understand property tax deductions on your federal return.
Best States for Retirees: Tax Guide 2026 — Evaluate Hawaii’s overall retirement tax picture.
Capital Gains Tax Guide — Hawaii taxes capital gains as ordinary income at up to ~11%.
Find a CPA Near You — Get professional Hawaii tax guidance.