Honolulu property tax: the $3.50 rate and the home exemption

Who sets your Honolulu property tax?

Two city offices are involved. The Real Property Assessment Division of the Department of Budget and Fiscal Services values every property. The Treasury Division sends the bills and collects the money. The city sets the rates each year.

By ordinance, property is taxed on 100% of its fair market value, assessed in its entirety as a fee simple interest (Revised Ordinances of Honolulu § 8-6.1, as quoted in the RPAD FAQ). The date of assessment is October 1 before the tax year. RPAD says the value comes from sales of similar properties and, where needed, a cost approach. The RPAD pages I read describe no annual cap on how much an assessment can rise; each year’s value follows the market.

The formula is: (assessed value minus exemptions) ÷ 1,000 × rate. There is a $300 minimum real property tax per taxable parcel (RPAD FAQ).

What are the rates for 2026-27?

These are the rates in RPAD’s 2026-27 report, published in July 2026. They are the same as for 2025-26.

Residential A is the class for a home with an assessed value of $1,000,000 or more and no home exemption. It covers single-family lots with up to two dwellings, and condominium units (RPAD, Residential A Information). That is why the home exemption matters most on pricier homes.

What does the home exemption save?

To qualify, you must own and occupy the property as your principal home on October 1. Only one home exemption is allowed per taxpayer. You must have your ownership recorded at the Bureau of Conveyances and your claim filed with RPAD by September 30 before the tax year. For the higher amount, you must be 65 by June 30 of the tax year, with your date of birth on record by September 30 before it (RPAD FAQ).

Once approved, you do not have to refile unless something changes. You must tell RPAD within 30 days if you sell or rent the home, or by November 1 of that year at the latest. A missed notice can cost a $300 penalty plus rollback taxes.

Timing matters when you buy. A claim filed after the September 30 deadline takes effect a year later. RPAD gives this example: a buyer whose deed was recorded after the deadline stays in Residential A for that year, even if the buyer lives in the home. RPAD suggests buyers check whether the home has an exemption and negotiate the tax into the price, escrow fees or proration at closing.

Example: three homes at the 2026-27 rates

The owner is under 65 and lives in the home.

The $1,600,000 row is RPAD’s own worked example. The $900,000 home is under the Residential A threshold, so skipping the exemption costs only the exemption’s value ($420 a year). At $1.2 million, skipping it costs $2,500 more. These are examples; your bill depends on your assessment.

When are bills due, and how do you appeal?

If a due date falls on a weekend or holiday, payment is due the next business day (Treasury Division). Mailed appeals and claims need a postmark on or before the deadline. Pay on time even while an appeal is pending, or you may owe penalty and interest.

The Board of Review hears appeals on four grounds. The first is that the assessment exceeds market value by more than 10%. The others are lack of uniformity, denial of an exemption you qualify for, and illegality. The Director’s assessment is presumed correct, so you must bring evidence such as sales of comparable properties (RPAD, Appeal Information). Call RPAD at 808-768-3799 first; many questions end there.

For the other costs of buying, see closing costs in Hawaii, the conveyance tax and the Honolulu guide. Lenders often collect property tax monthly through an escrow account.