Maui Property Tax: Essential Insights In 2024

Owning property comes with its share of ongoing costs: maintenance, utilities, and, of course, property taxes. While I prefer to write about beautiful properties or great Maui outdoor activities, prospective property buyers should know about Maui property tax expenses and resources.

This post covers the various tax rates for homes and condominiums, tax assessments, potential tax exemption, and various county of Maui property tax resources. By the end, you’ll be a bona fide expert on Maui property tax. Let’s dig in!

Key Takeaways:

• Property Tax Rates: Maui’s property tax rates differ by property type and use, with additional tax tiers based on assessed value.
• Assessment and Appeals: Property values are assessed based on various factors. Owners can appeal assessments with supporting evidence.
• Exemptions and Relief: Maui offers tax exemptions for homeowners, seniors, veterans, and charitable organizations, each with specific eligibility requirements.
• Wildfire Impact: The county provides financial relief to those who lost their residence in the fire through property tax waivers.
• Payment and Resources: Taxes are due in August and February. Late payments incur penalties. Maui County provides several online resources, covering everything from frequently asked questions to online payments to specific tax records for individual properties.

Understanding 6 Maui Property Tax Rates for Homes and Condos

Maui County’s property tax rates vary significantly by property type, use, and value. This post focuses on the rates relevant to home and condo owners.

Maui County’s property tax rates vary significantly by property type, property use, and property value. To simplify things, this post focuses on the rates relevant to home and condo owners.

Owner-Occupied Tax Rates

The lowest tax rate on Maui is for owner-occupied homes and condominiums. The rate ranges from $1.80 to $3.25 per $1,000 assessed value.

The $1.80 rate is for houses or condos with an assessed value of $1,000,000 or below, and the $3.25 rate is for homes or condos with an assessed value of over $3,000,000. The rate for homes assessed from $1,000,001 to $3,000,000 is $2.00 per $1,000 of assessed value.

The owner-occupied tax rates aren’t just the lowest rates in Maui; they are lower than the property tax rates for most municipalities throughout the country.

Assessed Value	Tax Rate (per $1,000 assessed value)
$1,000,000 or below	$1.80
$1,000,001 to $3,000,000	$2.00
Over $3,000,000	$3.25

Eligibility for owner-occupied tax rates depends on qualifying for the county homeowner tax exemption (more on that when we discuss tax exemptions below). The first component of obtaining the homeowner exemption is that the home or condo is your primary residence.

However, it is essential to note that you must also have filed Hawaii State Income Tax with a reported address in the county of Maui. This important distinction impacts people relocating to Maui with plans to make it their primary residence.

Non-Owner Occupied Tax Rates

If you own a home or condo that is not your primary residence, a long-term rental, a short-term rental, or eligible to be a short-term rental, it would qualify for the non-owner-occupied tax rate.

The tax rates for non-owner occupied homes and condos are tiered like owner-occupied properties. However, the tiers are different.

For the 2024-2025 fiscal year, non-owner occupied properties under $1,000,000 have a tax rate of $5.87 per $1,000 of assessed value. The rate for non-owner occupied properties between $1,000,000 and $4,500,000 is $8.50 per $1,000 of assessed value. The tax rate for non-owner occupied homes or condos assessed above $4,500,000 is $14 per 1,000 of value.

Assessed Value	Tax Rate (per $1,000 assessed value)
Under $1,000,000	$5.87
$1,000,000 to $4,500,000	$8.50
Over $4,500,000	$14.00

Short-Term Rental

If you own a condo or a home used as a short-term rental, you would fall into one of the short-term rental property tax tiers. It is important to note that if you own a condo in a development that allows for short-term rentals, you don’t rent it and aren’t eligible to claim a homeowner’s exemption; you will be taxed at one of the short-term rental rates.

The county of Maui taxes you at the highest and best use for your property unless you can claim an exemption. Short-term rentals have the highest tax rates of any tax classification on Maui.

Assessed Value	Tax Rate (per $1,000 assessed value)
Up to $1,000,000	$12.50
$1,000,001 to $3,000,000	$13.50
Over $3,000,000	$15.00

Condos with an assessed value of up to $1,000,000 are taxed at $12.50 per $1,000 of assessed value. Condos assessed between $1,000,001 and $3,000,000 have a tax rate of $13.50 per $1,000 of assessed value. The tax rate over $3,000,000 is $15 per $1,000 assessed value.

Long-Term Rental Tax Rates

Maui lacks a sufficient number of long-term rentals to meet local demands. The county offers favorable tax rates to incent long-term rentals. You must be granted a long-term rental exemption to be eligible for long-term rental tax rates (more on long-term rental exemptions below).

Long-term rental rates are tiered.

Assessed Value	Tax Rate (per $1,000 assessed value)
$1,000,000 or below	$3.00
$1,000,001 to $3,000,000	$5.00
Over $3,000,000	$8.00

Tier 1 is $1,000,000 or below with a rate of $3.00 per $1,000 of assessed value. Tier 2 is between $1,000,001 to $3,000,000 with a rate of $5.00 per $1,000 of assessed value.

Tier 3 is for properties assessed for more than $3,000,000. The rate for tier 3 is $8.00 per $1,000 of assessed value.

Commercialized Residential Tax Rates

Very few Maui property owners fall into this tax classification. It is for owners who use their home as their primary residence but also have a bed and breakfast permit, transient vacation rental permit, or use the property as a short-term rental home.

Before this fiscal year, homes in this category only fell under a single tax tier. This year, it has been separated into three tiers.

Assessed Value	Tax Rate (per $1,000 assessed value)
$1,000,000 or below	$4.00
$1,000,001 to $3,000,000	$5.00
Over $3,000,000	$8.00

Homes in tier 1 have a value of $1,000,000 or below and a tax rate of $4.00 per $1,000 of assessed value.

Tier 2 homes have an assessed value between $1,000,001 and $3,000,000 and a rate of $5.00 per $1,000 of assessed value. Tier 3 is for homes with an assessed value of $3,000,001 and above and a rate of $8.00 per $1,000 of assessed value.

Agricultural Property Tax Rates

Most homes on Maui with acreage are located on lots with agricultural zoning. Owning ag-zoned land in and of itself does not mean you will qualify for agricultural tax rates. You need to be engaged in legitimate agriculture.

Fruit trees for personal use or a solitary horse grazing in the backyard isn’t sufficient. The agricultural use assessment FAQ goes into more detail on eligibility criteria.

The agricultural tax rate is not where farmers and ranchers typically generate savings. The rate for this fiscal year is $5.74 per $1,000 of assessed value. The savings come with how the county assesses ag land. Land used for agriculture is assessed at a much lower value than comparable land not used for ag.

It is also worth noting that the whole property won’t be taxed at agricultural tax rates if there is a residential component to a farm. It is just the areas of the property where agricultural activities are occurring.

For example, if you own a five-acre farm in Haiku and qualify for a homeowner exemption, the county would tax the home and an acre of the surrounding land at the owner-occupied rate and the remaining four acres you farm at an agricultural rate.

How Maui County Assesses Property Values

Ever wonder how Maui County determines your property’s value? It’s not just a random number pulled out of thin air. The Real Property Assessment Division takes a close look at a variety of factors to come up with your assessment. Assessed values are recalculated annually, and new assessed values are submitted to property owners every March.

Factors That Influence Property Assessments

The valuation process for your property includes looking at its dimensions, spot on the map, zoning details, and any enhancements you’ve added. Recent local home sales are also reviewed to determine a fair market price.

In-person inspections are not common due to the number of county appraisers and structures that need to be appraised. In-person inspections may occur when a home is initially built or if a property is renovated on a larger scale. Otherwise, the county uses a computer-assisted mass appraisal system.

Appealing Your Property Assessment

What if you disagree with your Maui property tax assessment? There is a limited window to submit an appeal to contest your assessed value. This window runs from March 15th, when the county notifies you of your new assessed value, until April 9th.

To file your appeal, you must submit it with a $75 fee. That fee is refundable if the five-person board of appeals finds in favor of the taxpayer.

But here’s the thing – you can’t just say, “I think my assessment is too high.” You’ll need to provide evidence to support your claim, like a recent appraisal or comparable sales data. Most appeals are unsuccessful because they need more substantive proof to support their claims.

It is important to note that your property tax bills still need to be paid even if you appeal your assessment. Any non-payment will result in interest payments and penalties.

Property Tax Exemptions and Relief Programs in Maui County: 4 Key Programs

Property taxes can be a burden, especially if you’re on a fixed income or dealing with unexpected expenses. However, Maui County offers several exemptions and relief programs that could help lower tax bills.

Homeowner Exemption

If you own and live in your home or condo in Maui, you may be eligible for the homeowner exemption. This exemption can reduce the taxable value of your property by $200,000, which can make a nice difference in your tax bill. As mentioned above, being eligible for the exemption means you will qualify for the owner-occupied rate.

You must apply with the Real Property Assessment Division by December 31st of the preceding tax year to qualify. Again, you must have filed State of Hawaii income taxes from a Maui County address the year before the exemption’s effective date.

Partial returns or out-of-state resident returns do not qualify. Late on your property taxes will also make you ineligible for the homeowner exemption.

Long-Term Rental Exemption

If you have long-term tenants with a one-year or longer lease, you may be eligible to file for a Long-Term Rental Exemption. This exemption deducts $200,000 from your assessed value.

If you have a long-term rental on a property that already receives a homeowner exemption, the long-term rental exemption is $100,000 from the assessed value. That means a homeowner with a long-term rental on the same property can get a reduction of $300,000 total from their assessed value.

Disability Exemption

If you’re dealing with a disabling condition that keeps you out of work, consider applying for the disability exemption. The disability exemption can take $25,000 off your assessed value.

The county of Maui also offers an exemption for severely disabled veterans. This exemption can result in a minimum tax of $150.

Circuit Breaker Exemption

If you are already receiving a homeowner exemption, but your Maui property tax bill still exceeds 2% of your income, you may be eligible to file for a Circuit Breaker Exemption. Forms and applications are available through the county between August 1st and December 31st.

Impact of the Maui Wildfire Disaster on Property Taxes

The recent wildfire disaster in Maui has left our community reeling, with countless homes and businesses either lost or heavily damaged. The County of Maui helped reduce the financial burden by waiving property taxes for homes, condos, and commercial properties destroyed by fires in Lahaina or Upcountry Maui.

Rebuilding and Property Tax Implications

As our community begins the long process of rebuilding after the wildfire disaster, property owners will need to navigate the property tax implications of reconstruction.

The Real Property Assessment Division will work with affected property owners to ensure that their assessments accurately reflect the value of their properties and any improvements made during the rebuilding process. It’s a complicated process that is necessary to ensure that property owners are not overburdened during an already difficult time.

Paying Your Maui Property Taxes

Paying your property taxes may not be the most exciting task on your to-do list, but it’s important. Fortunately, Maui County offers several options to make the process as painless as possible.

Payment Methods

You can pay your property taxes online, by mail, or at the Real Property Tax Division office. You can use the county’s online payment portal if you prefer the convenience of online payments.

But if you’d rather pay by mail or in person, that’s an option, too. Make sure you allow enough time for your payment to be processed before the due date.

Due Dates

Regarding due dates, it’s important to know when your property taxes are due. In Maui County, property taxes are due in two installments yearly – the first on August 20th and the second on February 20th.

If those dates fall on a weekend or holiday, the due date is extended to the next business day. But don’t wait until the last minute. Late payments can lead to fines, interest payments, and loss of eligibility for county exemptions.

Penalties for Late Payments

Speaking of late fees, if you don’t pay your property taxes by the due date, you’ll be hit with a 10% penalty on the delinquent amount. And that’s not all – interest will also accrue on the unpaid balance at 1% per month.

Accessing Maui Property Tax Information and Resources

Whether through county websites or by speaking directly with Real Property Tax division employees, Maui County offers several resources to help you stay informed and on top of your tax obligations.

Contacting the Real Property Tax Division

Do you have questions about your property taxes? The folks over at the Real Property Tax Division are ready to assist. Give them a call at (808) 270-7297 or shoot an email to [email protected].

Their office is located at 70 E. Kaahumanu Avenue, Suite A-16, Kahului, HI 96732, is open Monday through Friday from 8:00 AM to 4:00 PM.

5 Simple Steps: How To Access Maui Property Tax Records and Maps

Accessing property assessment records and maps is essential for anyone interested in buying or selling real estate in Maui. These records provide valuable information about assessed values, ownership history, and geographic details, helping you make informed decisions. Here’s a step-by-step guide on how to access these records:

Step 1: Visit the Maui County Real Property Tax Assessment Website

Start by navigating to the Maui County Real Property Assessment Division’s official website. This website is the primary resource for accessing property assessment records and maps.

Step 2: Search for Property Records

Once on the website, look for the search records link at the top of the page. From the search records page, you can search for property records using three criteria:

• Parcel Number: If you know the parcel number, enter it directly into the search tool.
• Owner’s Name: You can search by the current property owner’s name.
• Address: Enter the property address to find the corresponding records.

Step 3: Accessing Assessment Records

After you enter your search criteria, the system will display a list of properties that match your input. Click on the desired property to view detailed assessment records, including:

• Property Value: Current assessed value of the property.
• Land and Building Details: Information about the land size, building specifications, and improvements.
• Ownership History: A record of past and present owners.

It is important to note that the building records on the county tax site do not always reflect permitted improvements for a property. Unpermitted improvements can show up on county tax records.

Step 4: Viewing Property Maps

Maui County’s website also offers maps of the Geographic Information System (GIS). To access these maps:

• Look for a map link under the parcel information on the property assessment page.
• Use the interactive map tool to view approximate property boundaries, zoning information, state land use districts, flood zones, satellite imagery, and more.
• You can zoom in and out and switch between map layers for more specific information.

Step 5: Requesting Additional Information

You can contact the Maui County Real Property Assessment Division directly if you need more detailed or specific information unavailable online. They can provide additional records, answer questions, and offer further assistance. Maui County Real Property Assessment Division.

Frequently Asked Questions

If you have a question about property taxes, chances are you’re not the only one. The Real Property Tax Division website includes a frequently asked questions (FAQ) section.

The FAQ section contains everything from property tax rates to appealing your bill. If you have questions about paying fees or seeking an exemption, this is where you should start.

Can’t find what you need in the FAQ section? Contacting the Real Property Tax Division might be your next best step. They’re available to clarify anything confusing about property taxes so that you’re equipped with all the necessary information for making wise choices regarding your property.

Maui Property Tax: Final Thoughts

Remember, staying on top of your property tax bill is crucial, but plenty of exemptions and relief programs are available if you qualify. And if you ever have questions or concerns, don’t hesitate to reach out to the friendly folks at the Maui County Real Property Tax Division.

Maui property tax might not be the most thrilling topic, but understanding how it works is key to being a savvy property owner on the Valley Isle. While we typically defer to the tax department on all tax-related questions, feel free to contact the Maui Real Estate Team with other real estate-related questions.