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Oahu Property Tax Rates 2019-2020

Oahu Real Property Taxes for 2019-2020

Several items changed from last year, with respect to the Honolulu County – Oahu Property Tax Rates charged to residential property owners. However, one thing that did not change is that Hawaii real property tax rates for owner occupants are, overall, the lowest in the United States.

Home Exemption Changes Favor Many Homeowners

One small change in Oahu Real Property Taxes was that homeowner exemptions went up, which is a little bit of good news for many homeowners. The general exemption was raised from $80,000 to $100,000. In addition, the tax exemption for owner-occupant seniors, over age 65 was raised from $120,000 to $140,000.

How The Owner-Occupant Home Exemption Works

If you are eligible for a home exemption, this amount is deducted from the total assessed value of the land plus improvements. This leaves you with a figure called “net taxable value” upon which property taxes are calculated. The $20,000 increase would result in a lower net taxable value and about a $70 annual savings.

Beautiful Mountain View in Kaneohe

Beautiful mountain view in Kaneohe, Oahu, Hawaii, to take your mind off Oahu Real Property Tax Rates

Other Changes to Oahu Real Property Tax Rates

There were also substantive changes to the real property tax rates, themselves. The rate for hotel and resort zoned properties increased from $12.90 to $13.90. This change impacts a relatively small number of residential properties which are in these zoning districts. Impacting many more properties, the Tier 2 Residential – A tax rate increased substantially, from $9.00 to $10.50 per $1,000 of net taxable value over $1,000,000.

Here are the other categories and rates:

Property Tax Rates on Oahu / Honolulu County 2019-2020

HONOLULU COUNTY OAHU PROPERTY TAX RATES

July 2019-June 2020

(Amount of Tax Per $1000 of Net Taxable Value)

Residential $3.50
Hotel and Resort $13.90
Commercial $12.40
Industrial $12.40
Agricultural $5.70
Preservation $5.70
Public Service $0.00
Residential A – Tier 1
(Applied to the net taxable value of the property up to $1,000,000)
$4.50
Residential A – Tier 2
(Applied to the net taxable value of the property in excess of $1,000,000)
$10.50
Vacant Agricultural $8.50

How Oahu Property Tax Rates for RES-A Properties Are Calculated

Honolulu Harriett owns a Property A in Honolulu County (Oahu) with a net tax assessed value of $1,400,000, and rents Property A out to a long-term tenant. She lives in another home, Property B, on Oahu and takes a home exemption for that property. Since she resides in another home and rents Property A, she is not eligible for a home exemption on Property A.

Harriett’s property is a Residential A property (see below). The Oahu property tax rate for the first $1,000,000 of net taxable value (Residential A – Tier 1) is $4.50 per $1,000, so the tax on that portion of Property A is $4,500. The Oahu property tax rate on the next $400,000 (Residential A -Tier 2) is $10.50 per $1,000, so the tax on the second portion of the value is $4,200. Total annual property tax on this Residential A property would be $8,700.

However, If Honolulu Harriett resided in Property A (and had applied for and received her owner exemption of $100,000), her total tax on Property A would be $3.50 per $1000 ($3.50 x $1,300,000 /$1,000), for a total annual property tax of $4,550.

Which Properties are Residential A (or RES-A)?

Residential A properties are certain properties on Oahu that are without an owner-occupant home exemption. These are:

  1. Condominium units without home exemption.
  2. 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.
  3. Residential vacant lots zoned R-3.5, R-5, R-7.5, R-10 and R-20.

As you can see from the Honolulu Harriett example above, Oahu property tax rates for 2019-2020 are significantly higher for Residential A properties than they are for similarly valued owner-occupied properties.

If you have other questions regarding purchasing Oahu real estate, please contact Yvonne at 808.721.8088. ~ Aloha

Connect With Yvonne Jaramillo Ahearn, Esq. (B)

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BJ

June 21, 2019

Great information. Very helpful. How do I get this same type of information for the other islands?

Also, my husband is a service connected disabled veteran (100% disabled). Are there tax breaks for this?

Best regards,

BJ

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