New Hawaii Property Tax Rates 2017 – 2018

New Hawaii Property Tax Rates 2017 – 2018

– We saw it coming, City Council just adjusted Hawaii’s new property tax rates for fiscal year July 1^st 2017 through June 30^th 2018.

The big change for Honolulu County / Island of Oahu is the now two tiered Residential Rate ‘A’:

$4.50 per $1,000 (0.45%) of the net taxable value for Oahu Residential A property up to $1Mill.

$9.00 per $1,000 (0.9%) of the net taxable value for Oahu Residential A property above $1Mill.

 Oahu’s property tax rate Residential ‘A’ applies to the following properties with a tax assessed value at $1Mill or above:

–        Condominium units without Home Exemption.

–        Residential lots zoned R-3.5, R-5, R-7.5, R-10, R-20, with either one or two single family homes, without Home Exemption.

–        Residential vacant lots zoned R-3.5, R-5, R-7.5, R-10 and R-20.

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How will this affect you:

– If you own residential property on Oahu other than your principal residence (No Home Exemption – either a 2^nd home or a rental property) with a tax assessed value below $1Mill, your property tax rate will remain $3.50. – Residential ‘A” only kicks in if your property’s tax assessed value is $1Mill or above.

The two tiered rate Residential A works as follows:

-If you own residential property on Oahu other than your principal residence (No Home Exemption – either a 2^nd home or a rental property) with a tax assessed value above $1Mill, your blended property tax rate will be  $4.50 for the assessed value below $1Mill, and $9 for any portion of the assessed value above $1Mill.

-A sample residential condominium without Home Exemption and a net assessed value of $2Mill will be taxed $13,500 / y ($4.5K on the 1^st $1Mill + $9K on the additional value above $1Mill) effective 7/1/2017.

Tax bills will be mailed to property owners on July 20, 2017 and payment is due by August 20, 2017.

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What can you do about it:

If you are eligible, check here:  claim your Home Exemption by September 30, 2017 and get your property tax rate reduced to $3.50 per $1,000 (0.35%) starting July 1^st 2018.

Note:  There are no changes for Kauai County property tax rates, but incremental property tax rate increases take effect 7/1/2017 for Maui and Hawaii County.  Changes from prior year are highlighted below:

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Btw, an earlier version of the bill labeled CD1 would have included an increase of Honolulu’s Hotel / Resort rate to $13.40. You can see below who voted in favor and against. The final version was eventually accepted unanimously and left the Hotel / Resort rate unchanged at $12.90.

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Also, check our other post: Honolulu & Oahu Property Tax Rates, Payment, Exemption, Penalties, etc..

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~ Mahalo & Aloha