lowest property taxes in Hawaii

The cost of living in Hawaii is notoriously high. It’s not a cheap place to buy a home. Therefore, you might be surprised that Hawaii has the lowest property taxes in the United States, by far. If you’re looking for the best of the best, here are the lowest property taxes in Hawaii.

Hawaii Has The Lowest US Property Tax Rates

Most people are surprised to learn this. After all, the land is expensive and limited and valuable. Therefore, you would think property taxes would be sky high. The reality is the opposite. Honolulu Civil Beat reported a few years back that Hawaii’s rate is about 50% lower than the second-lowest state in the nation which is Alabama.

That said, the report goes on to explain that this isn’t always a great thing. Hawaii makes up for that with other taxes. Plus, the cost of mortgages and rents there is still quite high. Move to Hawaii 365 explains that the state’s effective real estate tax rate is just .28% which is considerably lower than the national average. However, the state’s median home value is over $600,000, which is much higher than the national average. Therefore, Hawaiians pay an average of about $1700 per year in property taxes, which is higher than many states despite the fact that the rate itself is much lower.

So, if you’re concerned about overall cost of living in Hawaii, then there are many factors to take into consideration. But if you want to live there, then it doesn’t hurt to know where to find the lowest property taxes in Hawaii.

Where Are The Lowest Property Taxes in Hawaii?

There are five counties in the state of Hawaii. However, most reports don’t include Kalawao County, which is home to fewer than one hundred humans. Of the four counties typically counted in reports, Smart Asset says that the lowest property taxes are in Maui County, where they are only .19%. The highest are in Honolulu County, where they are .29%. Note that this is still considerably lower than the property taxes in any other state. Kauai and Hawaii counties’ rates are .25% and .28% respectively.

That said, there’s a diverse range in median home value across these different counties. The most expensive homes are in Honolulu County, where the media cost is about $649,800. Since this is also the area with the state’s highest tax rate, the average median annual tax payment is almost $1900.

Maui County has that low .19% tax rate. However, it has the second-highest median home value at just under $600,000. In contrast, Hawaii County has the lowest median home value at just over $333,000. As a result, the annual payment in Hawaii is only $940 on average whereas in Maui, it’s $1123. Kauai County has homes that are slightly lower in value than in Maui but their tax rate is so much higher than the average payment there is $1376 per year.

You Should Also Know

If you’re over the age of 60, and especially if you’re over the of 70, then you’ll want to pay attention. You get big property tax exemptions in Hawaii. Therefore, your rate will end up lower overall than other people in the same areas in the state.

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