Maui Property Taxes: Among Lowest in the US

Posted by Alex Cortez on Sunday, May 8th, 2016 at 5:19pm.

One of the most important questions a homeowner should ask is the property tax liability. Yet comparing property tax rates across the country can be incredibly daunting as these taxes can be assessed by multiple agencies with vastly different formulas. A recent study by CoreLogic reiterated that Hawaii enjoys the lowest median property tax rate in the country at 0.31%, which is significantly lower than the national median of 1.31% and it is merely a fraction of the nation's highest, with Illinois 'leading' at 2.67% - please refer to the chart below. It is worth noting that the actual amounts paid are a function of assessed values, which are determined at a local level using varying algorithms and automated-valuation models. 

hawaii property tax rates

Not only does Hawaii have the lowest median property tax rate in the U.S., but Maui enjoys the lowest effective rate in Hawaii - making homeownership on Maui incredibly attractive for a plethora of reasons, including the low tax liability. In Hawaii, each County is responsible for assessing and collecting its property taxes and while there are slight differences as to the implemented methodologies, in essence the process is very similar.  Set tax rates based on classification, assess a property's value, deduct applicable exemptions (if any) and apply tax rate. As each County has different classifications and exemptions, it is best to compare effective tax rates. Review the chart below, which is based on information from SmartAsset.com.

COUNTY

MEDIAN HOME VALUE

MEDIAN PROPERTY TAX PAYMENT

AVERAGE EFFECTIVE PROPERTY TAX RATE

Big Island (Hawaii County)

$309,800

$777

0.25%

Honolulu

$556,300

$1,630

0.29%

Kauai

$484,500

$1,133

0.23%

Maui

$523,700

$879

0.17%

Lastly, it is important to note under which category a property falls. In the County of Maui, the current property tax rates as of this writing are as follows:

 maui property tax rates 2016While care is taken to ensure all information in this post is accurate and the sources of information are leading-industry databases, information cannot be guaranteed. Information is for information purposes and is not to be deemed as legal or tax advice.

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Specializing in Makena and Wailea real estate, Alex Cortez is fully dedicated to representing his clients ethically and diligently. Contact him at 808.385.5034 or Alex@MauiRealEstateSearch.com for more information.

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