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Save Big on Property Taxes with Hawaii’s Home Exemption Program
Let’s be honest — when it comes to homeownership in Hawaii, every dollar counts. Between maintenance, utilities, and rising property taxes, it can feel like your wallet is under constant pressure. But what if there’s a simple way to cut down your property tax bill just by taking advantage of a program that many residents overlook?
Enter the Hawaii Home Exemption Program — a homeowner’s best-kept secret for saving money. Whether you’re a first-time buyer or you’ve lived in your home for years, this tax break could put hundreds (if not thousands) of dollars back in your pocket each year.
What Is the Home Exemption Program?
The Home Exemption Program is a property tax benefit available to homeowners in Hawaii. Simply put, if you live in your home as your primary residence, you may qualify for a reduction in your home’s taxable value. And when your taxable value goes down, so do your property taxes.
Here’s how it works: every property in Hawaii is assessed a value, which is then used to calculate property taxes. If you qualify for the home exemption, a portion of that value is subtracted before the taxes are calculated.
Example:
If your home is assessed at $800,000 and you qualify for a $100,000 exemption, you’ll only be taxed as if your home is worth $700,000. That can mean substantial yearly savings.
How Much Can You Save?
The amount varies by county, but here are the current standard exemptions:
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Honolulu County (Oʻahu): $100,000
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Maui County: $200,000
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Hawai’i County (Big Island): $40,000–$100,000 (depending on age)
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Kaua’i County: $160,000
To put this into perspective: In Honolulu, with a property tax rate of $3.50 per $1,000 of value, a $100,000 exemption could lower your bill by $350 per year. That’s real savings just for submitting a form.
Who Qualifies?
To be eligible for the home exemption:
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You must own and occupy the property as your primary residence (not a rental or second home).
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The property must be your real, permanent dwelling.
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You must file an application with your county’s Real Property Tax office.
The best part? You only need to apply once. The exemption continues automatically unless you move out, sell, or otherwise no longer qualify.
Extra Perks for Seniors and the Disabled
There are additional benefits available for those who are:
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65 years or older (larger exemptions may apply).
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Legally blind, totally disabled, or veterans — often eligible for enhanced savings.
If you or someone in your household fits these categories, check with your county’s tax office for the exact details.
How to Apply
Applying is easier than most people think. Here’s how to do it:
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Download the form from your county’s website or pick one up at your local Real Property Tax office.
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Fill out your details (name, property address, Tax Map Key number, proof of residency).
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Provide ID — usually a Hawai’i driver’s license or State ID showing your home address.
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Submit the form (mail or deliver in person) before the September 30 deadline for the exemption to take effect the following tax year.
Pro tip: If you recently bought your home, don’t wait until September — apply as soon as possible to maximize your savings.
Why It Matters in Hawaii
Living in paradise comes with a price — Hawaii is one of the most expensive states in the U.S. That’s why homeowners should take advantage of every possible financial break.
The home exemption helps lower unavoidable costs, giving you more room in your budget for the things that matter most — whether that’s building your emergency fund, investing in your child’s education, or saving for a well-deserved family trip.
More Than a Tax Break — It’s Peace of Mind
Reducing your property tax bill isn’t just about saving money. It’s about stability. For retirees or those on fixed incomes, the home exemption can ease financial strain and make long-term homeownership more sustainable.
Imagine opening your tax bill each year without stress — that’s the peace of mind this program provides.
Final Thoughts: Don’t Leave Free Money on the Table
If you’re a Hawaii homeowner not using the Home Exemption Program, you could be missing out on hundreds (or even thousands) of dollars in annual savings.
And since it only takes a few minutes of paperwork to apply, there’s no reason to wait.
Helpful Resources
If you have questions, reach out to your local tax office or talk with a knowledgeable Hawaii real estate agent who can guide you through the process.
Because when it comes to property taxes in Hawaii, a small exemption can make a big difference.
