Hawaii Property Tax Overview

Keywords: Hawaii property tax, property tax in Hawaii, Hawaii property tax rate

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Key Statistics (2026)

Source: According to the U.S. Census Bureau’s American Community Survey (ACS) (5‑year estimates, 2023).

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How the Tax Is Calculated

The effective property tax rate of 0.27 % is applied to the assessed value of a property. The assessed value is generally close to the market value reported by the ACS.

Example Tax Bills

The figures are rounded to the nearest dollar and reflect the average effective rate reported by the ACS.

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County Variations

Property tax rates in Hawaii are set by the four counties:

• Honolulu (City & County of Honolulu)
• Maui County
• Kauai County
• Hawaii County (the “Big Island”)

While the statewide effective rate averages 0.27 %, each county may adopt a slightly different nominal rate, exemptions, or assessment practices. For precise calculations, consult the county’s tax assessor office or published rate schedules.

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Comparison with the National Landscape

• National average effective property tax rate (2026): 0.97 %
• Hawaii’s effective rate: 0.27 %

Hawaii’s rate is 72.09 % below the national average, making it the lowest among all U.S. states and territories. This difference is reflected in the lower median annual tax payment ($2,183 vs. the national median of roughly $3,500 in 2023).

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Implications for Specific Groups

Retirees

• Lower property‑tax burden can reduce overall housing costs for retirees on fixed incomes.
• Consideration: Hawaii’s state income tax rates are relatively high (up to 11 % for taxable income above $25,000). Retirees should weigh property tax savings against higher income‑tax obligations and cost‑of‑living factors such as utilities and groceries.

Landlords / Real‑Estate Investors

• Advantage: The low effective property tax rate lowers the recurring expense component of owning rental properties.
• Other factors: Landlords must also account for higher property insurance premiums, maintenance costs associated with the island climate, and state-level taxes (e.g., General Excise Tax). Rental demand is often strong in tourism‑driven markets, but vacancy rates can vary by island and location.

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Frequently Asked Questions

1. How is the effective property tax rate calculated?
The effective rate is the total annual property tax divided by the market value of the property. In Hawaii, the 2023 ACS reports an average rate of 0.27 %, meaning a property valued at $100,000 would generate about $270 in annual tax liability.

2. Are there exemptions that can lower the tax bill?
Yes. Hawaii offers several exemptions, including the Homeowner’s Exemption (up to $30,000 of assessed value for owner‑occupied residences) and exemptions for senior citizens, veterans, and disabled individuals. Eligibility and amounts vary by county.

3. Does the tax rate change annually?
County tax assessors review property values and tax rates each fiscal year. While the effective rate tends to remain near 0.27 %, nominal rates and assessed values can adjust based on market conditions, budgetary needs, and voter‑approved measures.

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Summary

Based on the most recent ACS estimates, property tax in Hawaii is characterized by a low effective rate (0.27 %) and a median annual payment of $2,183, both substantially below the national average. Rates are administered at the county level, and while the low tax burden can be attractive to retirees and landlords, other fiscal considerations—such as state income taxes, insurance costs, and local exemptions—should be evaluated when assessing overall affordability.

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All figures are drawn from the U.S. Census Bureau’s American Community Survey (ACS) 5‑year estimates for 2023.