Home Exemption Property Tax Rules

A. Real property owned and occupied only as a principal home, as of the date of assessment, by an individual or individuals, will be exempt only to the following extent from property taxes: 1. For tax year ending June 30, 2023: a. Totally exempt where the value of the property is not in excess of $200,000; or b. Where the value of the property is in excess of $200,000, the exemption will be in the amount of $200,000. 2. For tax years beginning on or after July 1, 2023: a. Totally exempt where the value of the property is not in excess of $300,000; or b. Where the value of the property is in excess of $300,000, the exemption will be in the amount of $300,000. B. The provisions of subsection A will apply, subject to the following conditions: 1. That no such exemption will be allowed to any corporation, copartnership, or company. 2. That the exemption will not be allowed on more than one home for any one taxpayer. 3. That where the taxpayer has acquired a home by a deed made on or after July 1, 1951, the deed must have been recorded on or before December 31 immediately preceding the year for which the exemption is claimed. 4. That married persons will not be permitted an exemption of separate homes, unless they are living separate and apart, and provide a copy of a decree of separation from the appropriate court having jurisdiction that is in effect prior to the effective date of the exemption; and each file a separate income tax return as a resident of the State of Hawaiʻi with a reported address in the County the year prior to the effective date of the exemption; in which case they will be entitled to one exemption, to be apportioned equally between each of their respective homes. 5. That a person living on premises, a portion of which is used for commercial purposes, will not be entitled to an exemption for that portion, but will be entitled to an exemption for the portion used exclusively as a home. 6. That no such exemption will be allowed for any real property that is classified as "commercialized residential" or "short-term rental." C. Upon proper application, a taxpayer is entitled to a home exemption if the taxpayer: 1. Occupies the home in the County for which the exemption is being filed for more than 270 calendar days of a calendar year, does not rent the entire premises for any portion of the year, and files a State of Hawaiʻi resident income tax return with a reported address in the County the year prior to the January 1 effective date of the exemption. The following chart illustrates what prior to the January 1 effective date means: Example of "prior to the January 1 effective date" Application received by: December 31, 2025 Effective date of exemption: January 1, 2026 Effective tax year: July 1, 2026 through June 30, 2027 State of Hawaiʻi resident tax return year: 2024 State of Hawaiʻi resident tax return filed by: December 31, 2025   Non-resident and part-year resident State of Hawaiʻi income tax returns do not qualify for the home exemption. 2. Is stationed in the County under military orders of the United States. D. The director may demand documentary evidence such as a tax clearance from the State of Hawaiʻi indicating that the taxpayer filed an income tax return as a full-time resident for the year prior to the effective date of the exemption, from a property owner applying for an exemption, or from an owner as evidence of continued qualification for an exemption. Failure to respond to the director's demand in 30 days is grounds for denial of a claim for an exemption. E. If the director obtains evidence that an individual resides in a home outside the County, the evidence is prima facie proof that the individual does not own and occupy real property in the County as a principal home, and the director must provide written notice to the individual by mail that the individual is not qualified for an exemption or continued exemption under this section. Evidence may include documentation that homes that are being advertised for occupancy by transient tenants for periods of less than six consecutive months for any period during the course of any assessment year. F. If during the course of any tax year, the home exemption of a property is revoked, the taxes for the entire tax year must be recalculated without the exemption. G. No home exemption is allowed if taxes on the property are delinquent for a period of more than one year; except a home exemption is allowed for those tracts leased under section 207 of the Hawaiian Homes Commission Act, 1920, as amended, regardless of delinquency status. ( Ord. No. 5869 , § 3, 2025; Ord. No. 5582 , § 5, 2023; Ord. No. 5423 , § 2, 2022; Ord. No. 5404 , § 2, 2022; Ord. No. 5159 , § 6, 2020; Ord. No. 5108 , § 2, 2020; Ord. No. 4197, § 1, 2015; Ord. No. 4003, § 2, 2012; Ord. No. 3886, § 2, 2011; Ord. No. 3843, § 1, 2011; Ord. No. 3842, § 1, 2011; Ord. No. 3671, § 2, 2009; Ord. 3497 § 2, 2007: Ord. 3403 § 1, 2006: Ord. 3386 § 1, 2006: Ord. 3285 § 1, 2005: Ord. 3186 § 1, 2004; Ord. 3165 § 1, 2004; Ord. 2448 § 1, 1995; Ord. 1863 § 1, 1989: Ord. 1210 § 3, 1982: Ord. 1076 § 3 (part), 1980: prior code § 6-1.71(a))