Hawaii's Low Property Taxes: A Hidden Advantage for Homeowners

Hawaii's Low Property Taxes: A Hidden Advantage for Homeowners

Hawaii’s real estate market is often associated with high home prices, but one financial advantage that many buyers overlook is the state’s exceptionally low property taxes. For owner-occupied homes in Honolulu County, the property tax rate is one of the lowest in the nation, making homeownership more affordable than it might initially appear.

How Low Are Property Taxes in Honolulu County?

As of 2024, the property tax rate for owner-occupied residences in Honolulu County is just 0.35% of assessed value. That means for a home valued at $1,000,000, the annual property tax bill would be approximately $3,500—significantly lower than in many mainland metro areas.

Additionally, Honolulu County offers exemptions that further reduce the taxable value of owner-occupied homes. Homeowners under 65 receive a $120,000 exemption, while those 65 and older benefit from a $160,000 exemption. Furthermore, completely disabled veterans are exempt from all property taxes except for the minimum tax, providing additional financial relief for those who have served.

Comparing to Other Major U.S. Cities

For perspective, here’s how Honolulu County’s property tax rate stacks up against some major metro areas:

• Honolulu, HI – 0.35%
• San Diego, CA – ~0.73%
• Seattle, WA – ~0.88%
• Denver, CO – ~0.48%
• Austin, TX – ~1.68%
• Chicago, IL – ~2.16%…