Home property tax exemption rules and amounts

(a) Real property owned and occupied as a principal home shall be exempt to the following extent from property taxes: (1) Totally exempt where the value of the property is not in excess of $50,000; (2) Where the value of the property is in excess of $50,000, the exemption shall be the amount of $50,000. Provided that: (A) No such exemption shall be allowed to any corporation, co-partnership, or company; (B) The exemption shall not be allowed on more than one home for any one taxpayer and that such taxpayer shall certify under penalty of perjury that such taxpayer has no other home exemption in any other jurisdiction; (C) The taxpayer has acquired said home by a recorded deed; (D) Married persons shall not be permitted exemption of separate homes owned by each of them, unless they are living separate and apart, in which case they shall be entitled to one exemption, to be apportioned equally between each of their respective homes; SUPP. 18 (7-2025) 19-50 REAL PROPERTY TAXES § 19-71 (E) Those portions of the real property and/or structures, including the principal home, used by any person for commercial purposes, which are legally permitted as a home occupation in accordance with the zoning code, shall be excluded from this exemption, but shall be entitled to an exemption with respect to the portion thereof used exclusively as a home; (F) Notwithstanding paragraph 19-71(a)(2)(E) above, having portions of the principal home located on the real property used exclusively as residential housing rental for a term of not less than six months shall not prevent eligibility for the exemption; and (G) In the case of a lease of Hawaiian homestead lands, where the leaseholder is married to a person of non Hawaiian descent, either spouse shall be entitled to the home exemption in the same manner as if either spouse was considered the owner thereof, provided proof of marriage is submitted to the director of finance. (b) The use of a portion of any real property, accessory buildings, or structures used for the sole purpose of agricultural activities as defined in section 25-1-5 shall not affect the exemptions otherwise provided by this section. (c) Where two or more individuals by life estate and remainder, jointly, by the entirety, or in common own or lease land on which their homes are located, each home, if otherwise qualified for the exemption granted by this section, shall receive the exemption. If a portion of land held by life estate and remainder, jointly, by the entirety, or in common by two or more individuals is not qualified to receive an exemption, such disqualification shall not affect the eligibility for an exemption or exemptions of the remaining portion. (d) A taxpayer who is sixty years of age or over and who qualifies under subsection (a) shall be entitled to one of the following home exemptions: Age of Taxpayer Exemption Amount 60 years of age or over but $85,000 not 65 years of age or over 65 years of age or over but not $90,000 70 years of age or over 70 years of age or over but not $105,000 75 years of age or over 75 years of age or over but not $110,000 80 years of age or over 80 years of age or over $125,000 For the purpose of this subsection, a husband and wife who own property by life estate and remainder, jointly, by the entirety, or in common, on which a home exemption under the provisions of subsection (a) has been granted shall be entitled to the applicable home exemption set forth above when at least one of the spouses qualifies each year for the applicable home exemption. 19-51 SUPP. 18 (7-2025) (e) For purposes of this section, the term “real property owned and occupied as a principal home” is defined as the place where an individual has a true, fixed, permanent home and principal establishment, and to which place the individual has, whenever absent, the intention of returning. It is the place in which an individual has voluntarily fixed habitation, not for mere special, temporary, or vacation purpose, but with the intention of making a permanent home. (1) Four elements are necessary for real property to be considered a “principal home.” (A) The owner has no other home exemption or principal home in any other jurisdiction; (B) The owner maintains the principal home residence within the County; (C) The owner’s actual physical occupancy of the principal home within the County; and (D) The owner has filed a Hawai‘i state income tax return as a full time resident for each fiscal year that the exemption is sought, or: (i) In the case of an owner who has not earned sufficient income to require the filing of a Hawai‘i state income tax return, the owner may seek a conditional waiver of this requirement from the director by certifying that the only reason the waiver is sought is insufficient income to require the filing of a Hawaiʻi state income tax return, and by providing evidence to the satisfaction of the director that the owner is a full time resident; or (ii) In the case of an owner who relocated to the County of Hawaiʻi and has not yet had the opportunity to file a Hawaiʻi state income tax return, but intends to file a Hawaiʻi state income tax return at the next tax return filing deadline, that owner may seek from the director a conditional waiver of this requirement by certifying that the owner shall file a Hawai‘i state income tax return within the next twelve months. In the event the owner does not file a Hawai‘i state income tax return within the twelve month period, the owner shall be charged the amount of tax that was exempted and shall not be eligible to apply for the exemption under this section for one year. (2) Maintaining a principal residence may be evidenced by one or more of the following: (A) Occupancy of the home in the County for more than two hundred calendar days of the calendar year for which the exemption is sought; (B) Registering to vote in the County; (C) Being stationed in the County under military orders of the United States and must claim residency only in Hawai‘i; or (D) Possession of any of the following with a reported address within the County of Hawai‘i: (i) Valid Hawai‘i driver’s license. (ii) Hawai‘i state identification card. (iii) Resident aliens possessing a valid resident alien card (“green card”) must claim residency only in Hawai‘i. SUPP. 14 (7-2023) 19-52 REAL PROPERTY TAXES § 19-71 (iv) Completed and signed copy of the owner’s Hawai‘i County voter registration application, with only the last four digits of the owner’s social security number visible. (v) U.S. Internal Revenue Service tax return with only the last four digits of the social security number visible. The director of finance may require documentation of the above or additional evidence of residence in the County from a property owner applying for an exemption or from an owner as evidence of continued qualification for an exemption. Failure to respond fully to the director’s request, or in the event the director receives satisfactory evidence that a claimant occupies a permanent home outside the County or there is documented evidence the claimant resides outside of the County for more than one hundred sixty-five calendar days, shall be deemed grounds for denying a claim for exemption or disallowing an existing exemption. (f) Real property qualifying under subsection (a) shall be entitled to an additional exemption of twenty percent of the assessed value of the property not to exceed an additional $100,000.