By Kai Ioh and KE TEAM Hawaii
Kai Ioh is a luxury real estate advisor based in Kona, Hawai‘i, specializing in resort and ultra-high-net-worth markets across the Big Island.
Key Takeaways
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August 20 is a required real property tax payment deadline for all Hawai‘i County property owners.
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Hawai‘i County property taxes are administered at the county level, not by the State of Hawai‘i.
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Your tax bill is determined by assessed value, property classification, tax rate, and exemptions.
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The homeowner exemption can significantly reduce taxable value for primary residences.
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Annual review of your assessment and classification helps prevent errors, penalties, and overpayment.
Why August 20 Matters for Big Island Property Owners
If you own property on the Big Island, August 20 is the next due date for Hawai‘i County real property taxes. The second installment is due on February 20.
For many, it’s just another bill. But understanding how that number is calculated and how much you might be able to save can make a significant difference.
Whether you’re a first-time homeowner, a longtime local, or an out-of-state investor, knowing the basics of Big Island property tax can help you stay ahead of surprises, avoid penalties, and even reduce your annual tax bill.
What Is Hawaii County Real Property Tax?
Hawai‘i County real property tax is a local tax imposed by the County of Hawai‘i, not the state government. It applies to real estate, including land and improvements such as homes and other structures.
Property tax revenue supports essential county services across the Big Island, including:
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Police and fire protection
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Roads and infrastructure
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Parks and public facilities
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Waste management and other county operations
Unlike many mainland jurisdictions, Hawai‘i does not have a statewide property tax system. Each county sets its own rates, classifications, and exemptions. As a result, Hawai‘i County rules differ from those on O‘ahu, Maui, or Kaua‘i, making local understanding essential.
How Hawai‘i County Calculates Property Tax
Hawai‘i County uses a straightforward formula:
(Assessed Value − Exemptions) ÷ 1,000 × Tax Rate = Annual Property Tax
Assessed Value
The Real Property Assessment Division determines assessed value annually based on market data. Assessment notices are typically mailed in March.
Property owners may appeal if they believe the assessed value exceeds market value. Reviewing the assessment notice each year is an important step.
Tax Rate
Tax rates vary depending on the property’s classification, such as homeowner, non-owner-occupied residential, agricultural, or commercial.
Example Property Tax Calculation
If an owner-occupied home (under $2 million) has:
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Assessed value: $500,000
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Homeowner exemption: $80,000
Taxable value: $420,000
Homeowner tax rate: 0.615%
Estimated annual property tax: $2,583
Hawai‘i County Property Tax Rates by Classification
Tax rates are applied per $1,000 of assessed value and may be adjusted annually by the County Council.
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Homeowner: $6.15 (0.615%)
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Residential, Non-Owner-Occupied (< $2M): $11.10 (1.110%)
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Residential, Non-Owner-Occupied (≥ $2M): $13.60 (1.360%)
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Affordable Rental: $6.15 (0.615%)
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Agricultural: $9.35 (0.935%)
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Commercial / Industrial: $10.70 (1.070%)
Correct classification is critical. A property placed in the wrong category can face substantially higher taxes.
Key Exemptions That Can Reduce Your Tax Bill
Homeowner Exemption
The homeowner exemption is one of the most impactful tax reductions available in Hawai‘i County. It applies when the owner occupies the property as a primary residence for more than 200 days per year.
Homeowner Exemption Amounts (as of January 1, 2025)
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Under age 60: $50,000
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Age 60–64: $85,000
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Age 65–69: $90,000
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Age 70–74: $105,000
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Age 75–79: $110,000
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Age 80 and over: $125,000
The exemption amount is deducted from assessed value before tax is calculated.
Other Exemptions and Special Programs
Depending on property use, additional programs may apply, including:
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Agricultural use classifications for bona fide farming operations
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Affordable rental programs for qualifying long-term rentals
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Renewable energy exemptions for solar and certain energy-efficient improvements
Each program requires a formal application and supporting documentation, such as proof of residency, age, or property use.
Staying Compliant With Hawai‘i County Property Taxes
Simple annual habits can help avoid penalties and unnecessary costs:
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Mark August 20 and February 20 as payment deadlines
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Apply for exemptions early and keep documentation current
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Review assessed value and classification every year
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Consult a local CPA or tax advisor for complex ownership or planning situations
Official forms, deadlines, and classification rules are published by theCounty of Hawai‘i Real Property Tax Office. Here is the LINK.
Final Thoughts: Managing the Cost of Paradise
Owning real estate on the Big Island comes with unique benefits and responsibilities. Hawai‘i County’s property tax structure is relatively moderate by national standards, but only when classifications and exemptions are handled correctly.
A brief annual review of your assessment and tax bill can help ensure you are paying what is required—and no more.
Kai Ioh, www.KE Team Hawaii
Frequently Asked Questions
When are Hawai‘i County property taxes due?
Property taxes are due twice per year, on August 20 and February 20.
Who sets property tax rates on the Big Island?
Rates are set by the County of Hawai‘i, not by the State of Hawai‘i.
How is assessed value determined?
Assessed value is set annually by the Real Property Assessment Division using market data, with values as of January 1.
Can property owners appeal their assessed value?
Yes. Owners may appeal if they believe the assessed value exceeds market value.
What qualifies for the homeowner exemption?
The owner must occupy the property as a primary residence for more than 200 days per year.
Do tax rates differ by property type?
Yes. Rates vary by classification, including homeowner, non-owner-occupied residential, agricultural, and commercial.
Are exemptions applied automatically?
No. Most exemptions require an application and supporting documentation.
Where can I find official tax forms and deadlines?
They are available through the County of Hawai‘i Real Property Tax Office.