If you own property on Oahu — or you're thinking about buying — understanding how Honolulu's real property tax system works can save you thousands of dollars. This guide covers the current tax rates for fiscal year 2025–2026 (July 1, 2025 to June 30, 2026), the homeowner exemption program, how taxes are calculated, key deadlines, and what investors in particular need to watch out for.
2025–2026 Honolulu Property Tax Rates
Honolulu County taxes property based on its classification — not just its value. The rate is applied per $1,000 of net taxable assessed value.
Here are the current rates:
| Property Class | Rate per $1,000 | Effective Rate | |
|---|---|---|---|
| Residential (with home exemption) | $3.50 | 0.35% | Lowest |
| Residential A — Tier 1 (up to $1M, no exemption) | $4.00 | 0.40% | |
| Residential A — Tier 2 (over $1M, no exemption) | $11.40 | 1.14% | Investor alert |
| Transient Vacation Rental — Tier 1 (up to $800K) | $9.00 | 0.90% | |
| Transient Vacation Rental — Tier 2 (over $800K) | $11.50 | 1.15% | Investor alert |
| Commercial | $12.40 | 1.24% | |
| Industrial | $12.40 | 1.24% | |
| Hotel and Resort | $13.90 | 1.39% | Highest |
| Agricultural / Preservation | $5.70 | 0.57% | |
| Bed and Breakfast Home | $6.50 | 0.65% | |
| Vacant Agricultural | $8.50 | 0.85% |
Source: City and County of Honolulu Real Property Assessment Division, July 2025.
Why does Residential A matter? Any residential property valued over $1,000,000 that does not have a home exemption on file is classified as Residential A. For a $1.5M investment property, you pay the Tier 1 rate ($4.00/$1,000) on the first $1M and the Tier 2 rate ($11.40/$1,000) on the remaining $500K. This is a meaningful difference — see the example below.
The Homeowner Exemption — and Why It Matters
The Home Exemption is the single most important tax benefit available to Oahu homeowners. If you own and occupy your property as your principal residence, you qualify for a deduction from your assessed value before your tax rate is applied — and you get moved into the lower Residential class ($3.50/$1,000 vs. $4.00–$11.40 for Residential A).
| Age of Homeowner | Exemption Amount | What It Means |
|---|---|---|
| Under 65 | $120,000 deducted from assessed value | Taxed on (assessed value − $120K) × 0.35% |
| 65 and older | $160,000 deducted from assessed value | Taxed on (assessed value − $160K) × 0.35% |
To qualify, you must own and occupy the property as your principal residence for at least 270 days per year, have ownership recorded at the Bureau of Conveyances, and file a state of Hawaii income tax return as a Honolulu resident. The filing deadline is September 30 preceding the tax year for which you're claiming the exemption.
How to Calculate Your Honolulu Property Tax
The formula is straightforward: (Assessed Value − Exemption) × Tax Rate = Annual Tax. Here are two real-world examples.
Example 1: Owner-occupied home, assessed at $900,000 (homeowner under 65)
Calculation
| Assessed value | $900,000 |
| Home exemption (under 65) | - $120,000 |
| Net taxable value | $780,000 |
| Tax rate (Residential class) | $3.50 per $1,000 |
| Annual property tax | $2,730 |
Example 2: Investment property (no exemption), assessed at $1,500,000
Residential A — Two-tier calculation
| First $1,000,000 x $4.00 per $1,000 | $4,000 |
| Remaining $500,000 x $11.40 per $1,000 | $5,700 |
| Annual property tax | $9,700 |
That's a $6,970 difference per year between owning the same $1.5M property as a primary residence vs. an investment. The home exemption is worth filing for.
Key Deadlines for 2025–2026
| Date | What Happens |
|---|---|
| October 1 | Assessed value is established for the following fiscal year |
| September 30 | Deadline to file or update your Home Exemption claim with RPAD |
| December 15 | Notice of Assessment mailed to all property owners |
| January 15 | Deadline to appeal your assessed value to the Board of Review |
| August 20 | First tax installment due |
| February 20 | Second tax installment due |
Frequently Asked Questions
What is the property tax rate in Honolulu in 2026?
For owner-occupied residential properties with a home exemption, the rate is $3.50 per $1,000 of net taxable assessed value (0.35%) for fiscal year 2025-2026. Investment properties without a home exemption are classified as Residential A and taxed at $4.00 per $1,000 on the first $1,000,000 and $11.40 per $1,000 on any value above that.
How do I lower my Honolulu property tax bill?
The most impactful step is filing for the Home Exemption with RPAD by September 30. This removes $120,000 (or $160,000 if you are 65 or older) from your assessed value and places your property into the lower Residential tax rate. You can also appeal your assessed value each January if you believe RPAD's valuation does not reflect market conditions.
What is the Residential A classification and does it apply to me?
Residential A applies to residential properties valued over $1,000,000 that do not have a home exemption on file. If you own a second home, rental property, or investment property on Oahu worth more than $1,000,000, it will likely be taxed under Residential A rates. Filing a home exemption for your primary residence removes it from this classification.
How does the 90-day rental rule affect my property tax classification?
Properties operating as short-term vacation rentals in Honolulu are classified as Transient Vacation Rental, which carries rates of $9.00 per $1,000 (up to $800,000 in value) and $11.50 per $1,000 (above $800,000). If your property's rental permit status changes under Oahu's short-term rental regulations, your tax classification may also change. Contact RPAD to verify your property's current classification.
When are Honolulu property taxes due?
Property taxes are billed and paid in two equal installments. The first installment is due August 20 and the second is due February 20. Late payments are subject to penalties.
Can I appeal my assessed value in Honolulu?
Yes. You can file an appeal with the Board of Review between December 15 and January 15 each year after receiving your Notice of Assessment. Appeals may be filed in person, by mail, or online through the RPAD website. If you believe your assessed value is higher than what the market supports, Team Hawaii can help you understand how comparable sales in your neighborhood relate to your assessment.
How do I contact the Honolulu Real Property Assessment Division?
You can reach RPAD at (808) 768-3799 or by email at [email protected]. The Honolulu office is located at 842 Bethel Street, Basement, Honolulu, HI 96813. A Kapolei office is available at 1000 Ulu'ohi'a Street, Suite 206, Kapolei, HI 96707.
Understanding Honolulu's property tax structure is part of making smart real estate decisions on Oahu — whether you're a first-time buyer, a homeowner looking to minimize your tax burden, or an investor evaluating returns. If you have questions about how property taxes factor into a specific purchase or sale, Team Hawaii's agents are here to help.
