Depending on where you live in Hawaii, home prices can be quite high, but have declined considerably from 2010 to 2011. According to the Hawaii Association of Realtors, median sales prices on single family homes throughout the state dropped from $439,500 year-to-date through March 31, 2010 to $426,000 for the same period in 2011, a 3.07% decline. Median sales prices for condominiums dropped from $336,688 in 2010 to $282,500 in 2011, a 16.09% decline.
Property taxes as a percentage of median home value in Hawaii are very low on a national level, at 0.26% in 2009 according to the Tax Foundation, placing Hawaii in 49th place among the 50 states. Property taxes are assessed on 100% of the fair market value of the property and are administered by the counties, with each county having different property tax exemptions.
Home exemptions
The standard home exemption on your principal residence in the county of Hawaii is $40,000. If you are age 60 to 69 the exemption is $80,000 and if you are 70 or older, the exemption is $100,000.
The home exemption in the city and county of Honolulu is $80,000. If you are 65 or older, the exemption is $120,000. If you have an existing home exemption on file, you do not need to re-apply. The exemption amount is automatically increased depending on your age. There are progressively higher exemptions if you are 75 or older and your household income is not more than the low-income limits established by the United States Department of Housing and Urban Development.
The basic home exemption in Kauai is $48,000. If you are age 60 to 69 you can claim a $96,000 exemption and if you are 70 or older the exemption increases to $120,000. If your adjusted gross income for the preceding year is less than $40,000 you qualify for an additional $55,000 exemption.
In Maui the homeowner exemption on your principal residence is $300,000.
Disability exemptions
If you have impaired sight or hearing or are totally disabled you can qualify for an additional exemption. This exemption also applies if you have Hansen’s disease and are hospitalized or under temporary release. The disability exemption is $50,000 in the Counties of Hawaii and Kauai and $25,000 in Honolulu and Maui.
If you are a veteran and are totally disabled due to injuries you received while on active duty, your principal home is exempt from all property taxes except for special assessments and the annual minimum tax. Widows or widowers of totally disabled veterans are also eligible for this exemption as long as they remain unmarried. Once you are granted a disability exemption you do not have to re-file each year as long as you meet the disability requirements.
Sources:
Disability Exemptions – Hawaii County Real Property Tax Office
Homeowner Exemption – County of Hawaii
Property Taxes on Owner-Occupied Housing by State, 2004 – 2009 – Tax Foundation
Real Property Assessment Exemption Information – City and County of Honolulu
RPA Exemption Information – County of Kauai
Statewide Property Search – Hawaii Association of Realtors
Understanding Property Taxes – County of Maui
Reference:
- Hawaii Department of Taxation: www.state.hi.us/tax/
- Living and Working in Hawaii: hawaii.gov/dbedt/business/living
- State of Hawaii: www.ehawaii.gov/dakine/index.html
