Home Tax Exemption

Home Tax Exemption

Hawaii law provides home exemptions for property tax purposes. The exemption serves to reduce the taxable assessed value of your property, thus reducing the property tax liability each year. The exemption is available only for owner occupied property as of January 1 each year. You need to apply only once.

Every owner-occupied property is entitled to the basic home exemption:

Basic Home Exemption = $40,000

A multiple home exemption was established to lighten the tax burden on senior citizens who have relatively fixed retirement incomes. Senior citizens who are 60 years or older are eligible to apply. The multiple home exemption is determined as follows:

Age 60 to 69	Exemption = 2 X basic home exemption
	Exemption = 2 X $40,000 = $80,000

To obtain the multiple home exemption, a taxpayer must be 60 years of age on or by January 1, preceding the tax year for which the exemption is claimed.

Age 70 or over	Exemption = 2-1/2 X basic home exemption
	Exemption = 2-1/2 X 40,000 = $100,000

Claims for exemptions may also be filed by totally disabled veterans, Hansen's Disease victims, the blind, deaf and totally disabled, and charitable organizations using their property for non-profit purposes.

For more Information on Home Exemptions call (808) 327-3540.

Assessments	New assessment cards come out every March for the following year.
	Example: 3/98 assessments are for assessed period 7/1/98 to 6/30/99.

Tax Rates
Hawaii County Council votes on tax rates every June.

Current rates - Owner Occupied
$4.45/$1,000 of assessed value

Current rates - Investor
$8.50/$1,000 of assessed value

Current rates - Investor - Condo property
$ 8.50/$1,000 of assessed value of the structure
$10.00/$1,000 of assessed value of the land

Current rates - Land
$10.00/$1,000 of assessed value

Example: OWNER-OCCUPANT

Assessed Value	$200,000
Home Exemption	- $40,000
	$160,000
Tax Rate	x 4.45
	712,000
divided by	1,000
Tax Assessment =	$712

We suggest that you check your most recent Tax Assessment notice or call (808) 327-3540 to be sure you are receiving the correct exemption. Many of the properties we have listed were paying too much, due to not filing for the correct exemption.

Example: INVESTOR

Assessed Value	$200,000
Home Exemption	- $0
	$200,000
Tax Rate	x 8.50
	170,000
divided by	1,000
Tax Assessment =	$1,700

As always, you should consult your attorney or professional tax preparer for additional information regarding your particular transaction.

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Home Tax Exemption

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