Property Taxes in Hawaii

Effective Rate

Hawaii has the lowest average effective property tax rate in the entire United States — roughly 0.27%–0.29% of assessed home value, versus the ~0.99%–1.02% national average. That means Hawaii's rate is only about a quarter to a third of the typical U.S. rate, even though Hawaii home values themselves are among the highest in the country (median home value around $800K+). Effective rates vary somewhat by county: Tax Foundation data puts Maui County lowest at about 0.22% and Hawaiʻi County (Big Island) highest at about 0.35%, with Honolulu (Oahu) and Kauai County in between. Hawaii's low rate is a deliberate policy tradeoff — the state leans more heavily on the general excise (sales-like) tax and income tax for revenue, so property taxes make up a smaller share (~18%) of total state/local tax collections than in most states.

Example: Statewide, the median annual property tax bill is roughly $2,100–$2,400/year (recent Census ACS-based estimates range from about $2,183 to $2,488 depending on survey year), which is close to or slightly above the ~$2,400 national median despite Hawaii's far lower rate — a result of its very high home values. For context, on a home assessed near the statewide median value of about $800,000, a 0.27%–0.29% effective rate works out to roughly $2,200–$2,300 in annual tax, before any homeowner exemption is applied (exemptions reduce this further for owner-occupants).

Exemptions