Everything You Need to Know About 2022-2023 Maui Property Tax Rates

Property tax rates are one factor you’ll likely want to consider if you’re making decisions about buying Maui real estate. Tax rates for Hawai`i homes can vary slightly from one year to the next and from one island to another.

In this blog post, you’ll find Maui’s rates for the tax year July 1, 2022 through June 30, 2023. But first, here’s a quick explanation of how our rates get established …

The Real Property Assessment Division of the county’s Department of Finance conducts a fair market value appraisal of each Maui property annually. So what exactly is the definition of fair market value? It’s the price at which a property would be likely to sell if 1) both a willing buyer and a willing seller had reasonable knowledge of it, and 2) there was no consideration given to current market factors such as supply and demand.

Now you might be wondering, “How does Maui County physically inspect every property every year for these appraisals?” It doesn’t. A property is inspected at the time of initial construction, and it may be inspected again if renovations take place. Otherwise, its annual valuation typically occurs using a mass appraisal computer algorithm.

Maui County property owners pay taxes in two installments each year, once in August and once in February. Current rates are listed below, per $1,000 of net taxable assessed valuation.

Owner-occupied property tax rates:

• Tier 1, for property values up to $1,000,000: $2.00
• Tier 2, for property values between $1,000,001 and $3,000,000: $2.10
• Tier 3, for property values above $3,000,000: $2.71

Non-owner-occupied property tax rates:

• Tier 1, for property values up to $1,000,000: $5.85
• Tier 2, for property values between $1,000,001 and $4,500,000: $8.00
• Tier 3, for property values above $4,500,000: $12.50

Short-term rental property tax rates:

• Tier 1, for property values up to $1,000,000: $11.85
• Tier 2, for property values between $1,000,001 and $3,000,000: $11.85
• Tier 3, for property values above $3,000,000: $11.85

Long-term rental property tax rates:

• Tier 1, for property values up to $1,000,000: $3.00
• Tier 2, for property values between $1,000,001 and $3,000,000: $5.00
• Tier 3, for property values above $3,000,000: $8.00

Other (non-tiered) property tax rates:

• Agricultural: $5.74
• Apartment: $3.50
• Commercial: $6.05
• Commercial residential: $4.50
• Conservation: $6.43
• Hotel and resort: $11.75
• Industrial: $7.05
• Time share: $14.60

And finally, here are a few additional points:

• Each property is taxed according to its “highest and best use.” That means, for example, that a condo may fall into the owner-occupied or non-owner-occupied category or another category, such as commercial or hotel/resort.
• If you 1) own and occupy your Maui property as a principal residence, and 2) file a homeowner’s exemption application by December 31, you may qualify for a $200,000 reduction in your property’s net taxable value for the following assessment year.
• Likewise, if you own a long-term rental property and file a claim for long-term rental exemption by December 31, you may qualify for a $200,000 reduction in your property’s taxable value for the following year.
• A property with a permit to operate as either a transient vacation rental or a bed and breakfast is categorized as commercial residential.
• For leasehold properties, a fee simple value is calculated to determine the appropriate tax rate.

If your head is now swimming with all these numbers and classifications, contact me! I’ll be happy to clarify, or to answer any other questions you may have about Maui real estate.

Leslie Mackenzie Smith, REALTOR(S), RS-42147