Hawaii boasts the absolute lowest property tax rate in the United States, with a statewide effective rate of just 0.29%. Because the state government heavily centralizes funding for schools and infrastructure, local counties don’t need to levy massive property taxes. However, the extreme cost of island real estate means actual tax bills remain high (est., Tax Foundation 2026).
There are no local school boards or independent municipal taxing districts in Hawaii. The state government funds public education directly via income and sales (GET) taxes. This leaves the 4 main island counties to use property taxes solely for local services (police, fire, parks), resulting in the lowest property tax rates in the nation.
100% Assessment and The 4 Counties
In Hawaii, there are only 4 primary taxing jurisdictions: Honolulu (Oahu), Hawaii (The Big Island), Maui, and Kauai. Assessors value property annually at 100% of fair market value. Unlike the mainland, there are no overlapping city or school taxesyour bill is determined entirely by your county classification rate.
Counties heavily penalize non-residents and investors. Owner-occupied properties receive massively discounted rates, while short-term vacation rentals and high-end second homes are taxed at severely elevated tiers.
Hawaii statewide effective rate. On a $750,000 home, expect approximately $2,175 per year at the statewide average. (est., Tax Foundation 2026).
| Home Value | Annual Tax (est.) | Monthly Payment | vs. U.S. Average |
|---|---|---|---|
| $500,000 | $1,450 | $120 | -$3,050 below avg. |
| $750,000 | $2,175 | $181 | -$4,575 below avg. |
| $1,000,000 | $2,900 | $241 | -$6,100 below avg. |
| $1,500,000 | $4,350 | $362 | -$9,150 below avg. |
| $2,000,000 | $5,800 | $483 | -$12,200 below avg. |
Estimates use 0.29% statewide effective rate. U.S. average uses 0.90%. Source: est., Tax Foundation / Census ACS.
County-Specific Owner-Occupied Exemptions
To qualify for low rates, you must claim the Owner-Occupant Home Exemption. This removes a massive chunk of your home’s assessed value from taxation before the rate is applied. These exemptions are set independently by each county and heavily favor seniors:
- Honolulu: $120,000 (Under 65); $160,000 (65+).
- Hawaii County: Starts at $50,000 (Under 60) and scales up to $125,000 for residents 80 and older.
- Maui County: A flat $300,000 standard exemption across the board.
- Kauai County: $220,000 (Under 60); scales up to $260,000 for residents 70+.
Caps on Property Tax Increases
While the State of Hawaii does not mandate a cap on assessment increases, individual counties have implemented their own protections for owner-occupants:
- Hawaii County: Imposes a strict 3% annual cap on taxable value increases for homes holding the qualified homeowner exemption.
- Kauai County: Also enforces a 3% annual assessment cap for properties with the homeowner exemption.
- Honolulu & Maui: Currently have no assessment caps, leaving homeowners vulnerable to market spikes.
Maui Wildfire Recovery (2024-2025 Updates)
Following the devastating Lahaina wildfires, Maui County enacted severe emergency tax measures. For the 2023-2024 tax years, property taxes were completely waived for properties destroyed or damaged in Lahaina and Upcountry fires, with relief extending through June 30, 2025.
To fund recovery, Maui shifted the tax burden heavily onto investors for FY 2025-2026. The county aggressively increased tax rates on high-value second homes (over $3 million) and top-tier short-term vacation rentals, while slightly decreasing rates for standard owner-occupied properties under $4.5 million.
Disclaimer and Methodology
This calculator provides estimates for planning purposes only, based on effective property tax rates and statutory county rates. In Hawaii, property taxes are levied exclusively by the 4 main counties with no overlapping school or city taxes. The rates shown in the calculator dropdown reflect the baseline Owner-Occupied (Tier 1) residential rates for the 2024-2025 fiscal year.
What this calculator does not account for:
- Non-Owner Occupied properties (vacation homes, second homes, short-term rentals), which are subject to drastically higher tiered tax rates in all 4 counties.
- Properties valued in higher tiers (e.g., Maui assesses owner-occupied homes differently if valued over $3M).
How to get an accurate estimate:
- Find your home’s 100% Assessed Value on your county’s Real Property Assessment tool.
- Subtract your specific age-based Homeowner Exemption limit.
- Multiply the remaining value by your specific county’s current mill rate, and divide by 1,000.
Data sources: Statewide effective rate derived from the Tax Foundation and Census ACS. Statutory rates, exemption thresholds, and Maui disaster relief updates sourced directly from the Real Property Assessment Divisions of Honolulu, Hawaii, Maui, and Kauai Counties.
Return to the National Property Tax Calculator to compare Hawaii with other states.
