Hawaii County (Big Island) Property Taxes Explained
Most people think of Hawaii as a beautiful place to live where taxes are high. In some areas, they're right. But, when it comes to property taxes, Hawaii has some of the lowest rates in the country.
Each Island in the Hawaiian chain is it's own county. The Island of Hawaii, also known as the Big Island is Hawaii County. Each Hawaiian county sets their own property tax rates. In Hawaii County there are tax rates for the different property classes, ie. Residential, Commercial, Hotel/Resort, etc. There are are also tax rates for owner occupied properties and investor owned properties.
Hawaii County tax rates are very favorable to owner occupant residents of Hawaii. The county determines an assessed value for each property. There are two exemptions for owner occupants. The first exemption is determined by the oldest owners age. Owners younger than 60 receive a $40,000 exemption off of the assessed value. Owners between 60 and 70 receive an $80,000 exemption and owners 70 + receive a $100,000 exemption.
The second exemption for owner occupants is 20% of the assessed value up to a maximum of $80,000. This amount is also taken off of the assessed value. Another benefit of being an owner occupant is the 3% cap yearly on assessed value increases.
Once Hawaii homeowners add up their two exemptions and deduct it from the assessed value they calculate their property tax by multiplying the reduced assessed value by .615% (.00615). That is just over 6/10th's of 1% of a discounted assessed value. These are some of the lowest tax rates in the country!
Residential tax rates on investment properties in Hawaii County are just over 1% of the assessed value. Which is also very reasonable.
So, if you are thinking about living in Hawaii, I just gave you another reason. If I can be of assistance in your search for real estate in Hawaii, don't hesitate to contact me.
Rich Bosselmann R(S)
Koa Realty Inc.