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Maalaea on Maui

Maui Property Tax Rates and How to Calculate Estimated Property Taxes

One of the most frequently asked questions when buying Maui properties is "What are the property taxes?"

Maui does not have one set tax rate for all properties. Instead, it has many different rates based on how the owner intends to use the property and how the property is zoned. Maui's property tax rates are actually very reasonable when compared to other state's property tax rates.

Here is some additional information regarding property tax rates and some examples showing you how to calculate estimated annual property taxes.
Please keep in mind the calculations will be estimates. When the county assesses your property, the tax base may be more or less than the purchase price.

Property taxes are based on 100% of assessed value. Assessed value is 100% of market value - usually purchase price. The property tax rates are based on use. If you plan on occupying the home or condo you can apply for a homeowner's exemption of $200,000.

When you purchase a home or condo, you inherit the current tax rate of the seller until July 1st of the following year after closing and then your tax rate will take effect. If you will be owner occupied, you must apply for your exemption by December 31st in the year of purchase.

Here is an example to show you how to calculate the property tax for a condominium/home that will be owner occupied:
You purchase 3/31/13. You receive the current owner's tax rate until 7/1/2014.


You file your exemption form by 12/31/
13. You receive a $200,000 homeowner's exemption.

Your new tax rate is $2.87
per $1000 of assessed value which is 100% of market value.
Your tax is calculated as follows:
Assessed value $245,000
Less homeowners exemption $200,000
Tax base $ 45,000

$2.87
x 45 = $129.15 per year or $10.76 per month, which will not begin until 7/1/14. You inherit the current owner's tax until 7/1/14 when your new rate goes into effect.

Exemptions are only given for owner occupied and only if applied for. If you fail to apply for the homeowner's exemption by 12/31 you will not receive the exemption for the following year's tax calculations. You can apply before 12/31 the following year, but will pay the higher tax until July 1st of the year following application.

The rate for investment property used as rentals for periods longer than 6 months (long term rentals) is $
5.75 for residential zoned and $6.40 for apartment zoned per $1000 of assessed value and no exemptions are granted.

The rate for investment property used as rentals for periods less than 6 months (vacation rentals) is $9.40
per $1000 of assessed value and no exemptions are granted.

Example for calculating vacation rental property taxes:
Assessed value $345,000 
You purchase 3/31/13
. You receive the current owner's tax rate until 7/1/2014.

Purchase price/assessed value $345,000
No exemption 0
Tax base $345,000

$9.40
x 345 = $3243 per year or $270.25 per month, which does not begin until 7/1/14. You inherit the current owner's tax  rate until 7/1/14 when your new rate goes into effect.

Here is a link to an explanation of the different uses and the property tax rates:
Maui Property Tax Site


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