Not that it was unexpected, but property taxes went up in Honolulu County, Hawaii (i.e., island of Oahu) for the 2009-2010 year. (For other counties, see link below). Property taxes did not go up for residential real estate in the County of Honolulu for 2010-2011, however. See below.
The Honolulu County 2008-2009 rate for residential improved property was previously $3.27 per $1000 and went up to $3.42 per $1000 for the period of July 1, 2009 through June 30, 2010.
Nevertheless, unless something drastic has happened everywhere else in the country, Hawaii property taxes in all counties are still among the lowest in the country. See, for comparison, Tax Foundation Data for State Property Taxes by County for 2005-2007.
Real property taxes in Honolulu County (Oahu) are determined by taking the total tax assessed value of the property and deducting any exemptions, then multiplying by the tax rate above. The total tax assessed value (Assd Val Total) is the sum of the value of the assessed value for land (Assd Val Land) and the assessed value for the improvements to the property, e.g, home, garage, pool, patios, fences, etc. (Assd Val Imprv).
To determine the approximate taxes for a property they were purchasing, a prospective homebuyer would look at the MLS Full Report, provided by their REALTOR for a particular property and see, for example, the following:
| Assd Val Land: $969,000 | Tax Year: 2008 | Elem School: |
| Assd Val Imprv: $247,900 | Mon Taxes: $305 | Middle School: |
| Assd Val Total: $1,216,90 | Home Exemp: 80000 |
Here, you see the tax value of both the land and the improvements, and the total which is used to calculate the property tax. In the MLS Property Reports, the applicable exemption is in the section Home Exemp. The section, Mon Taxes is an approximate statementof the monthly taxes paid for the Tax Year specified.
The standard exemption for an owner-occupied home is $80,000, which you see in the example above. If the owner is over age 65 the exemption goes up to $120,000
There are other exemptions for low-income older property owners, agricultural properties, and for historic properties, etc. The complete details regarding Home Exemptions for Honolulu County can be found here.
One important thing for homebuyers/homewoners to note —- You do not AUTOMATICALLY receive the homeowners exemption. You must file the appropriate form with the City and County of Honolulu to get the exemption or your exemption will be zero. Your REALTOR should provide you with information about this and/or a form when you purchase your home so that you can receive the exemption. If you miss the deadline of September 30, you cannot get the exemption retrocatively.
Now, you can file or update your Home Exemption Online (in addition to bringing it to a Satellite City Hall or mailing it in).
Property Taxes for State of Hawaii - Includes Honolulu County (Oahu), Maui County, Kauai County, and Hawaii County (Big Island of Hawaii).