Ordinance 25-44 Redefines Residential A and TVU Tax Tiers

On October 20, 2025, the City and County of Honolulu passed Ordinance 25-44, which redefines the Residential Aand Transient Vacation Unit (TVU) real property tax tiers. This new law introduces a third tier for both classifications and raises the value thresholds for each — the first major adjustment since 2014.

🏠 Residential A Tiers

The new Residential A tax tiers apply to the net taxable value of the property as follows:

• Tier 1: Up to $1.3 million

• Tier 2: More than $1.3 million and up to $3.5 million

• Tier 3: More than $3.5 million

What Qualifies as “Residential A”

A property (or portion of one) is classified as Residential A if it:

• Is improved with no more than two single-family dwelling units

• Has an assessed value of $1.3 million or more

• Does not have a home exemption

• Is zoned residential or dedicated for residential use

It also includes:

• Vacant residential-zoned land valued at $1.3 million or more

• Residential-classified condominiums valued at $1.3 million or more without a home exemption

🏖️ Transient Vacation Unit (TVU) Tiers

The new TVU tax tiers apply to the net taxable value of the property as follows:

• Tier 1: Up to $900,000

• Tier 2: More than $900,000 and up to $2 million

• Tier 3: More than $2 million

What Counts as a TVU

A Transient Vacation Unit (TVU) is defined as a dwelling or lodging unit that is advertised, offered, or rented for fewer than 90 consecutive days.
It does not include:

• Bed and breakfast homes

• Timeshare units

• Hotels

📅 When It Takes Effect

Ordinance 25-44 is scheduled to take effect on July 1, 2027.