A Guide for Homeowners, Buyers & Investors

Owning property in Maui is a dream for many—but understanding property taxes is essential to making smart financial decisions. Whether you’re a first-time homebuyer, investor, or long-time homeowner, here’s a clear breakdown of how Maui County property taxes work and how exemptions can significantly reduce your tax bill.

Unlike most states, Hawaii does not have a statewide property tax system. Instead, each county—including Maui—sets its own tax rates and rules. 

Property taxes in Maui County are based on:

• The assessed value of your property (determined annually)
• The classification of the property (how it’s used)

The county uses this revenue to fund essential services like schools, roads, fire protection, and public safety. 

The tax year runs from July 1 to June 30, with payments typically due:

• August 20
• February 20 

Property Tax Classifications  and Why They Matter

One of the most important things to understand is that your tax rate depends on how your property is classified.

In Maui County, properties fall into categories such as:

• Owner-Occupied (primary residence)
• Non-Owner Occupied
• Long-Term Rental
• Short-Term Rental (TVR/STRH)
• Hotel & Resort
• Agricultural
• Commercial

Each category has a different tax rate—and the difference can be significant. 

For example:

• Owner-occupied homes are taxed at much lower rates
• Short-term rentals and investment properties are taxed at much higher rates

This is why understanding your classification is key to managing your costs.

Maui Property Tax Rates 2025–2026 Snapshot

Maui uses a tiered system, meaning the rate can increase based on your property value.

Here’s a simplified look:

• Owner-Occupied: starts around $1.65 per $1,000 of value
• Non-Owner Occupied: can go up to $17.00 per $1,000
• Long-Term Rental: generally lower than investor rates
• Short-Term Rental: among the highest rates 

Even though Hawaii has one of the lowest effective property tax rates in the U.S., high home values can still lead to substantial tax bills. 

What Is the Home Exemption?

The Home Exemption is one of the most valuable tax benefits available to Maui homeowners.

What it does:

• Reduces your taxable value by at least $200,000
• Moves your property into the owner-occupied tax class (lower rate)

Basic Requirements:

To qualify, you must:

• Live in the home as your primary residence
• Occupy it for more than 270 days per year
• File Hawaii state taxes as a resident
• Not rent the entire property out

Additional Exemptions & Tax Relief Programs

Maui County offers several other exemptions and programs, including:

1. Age-Based (Kupuna) Exemptions

• Higher exemption amounts for homeowners age 60+ or 70+
• Helps reduce taxes for long-term residents on fixed incomes

2. Long-Term Rental Exemption

• Lower tax rates for properties rented 12+ months to the same tenant
• Encourages long-term housing availability

3. Agricultural Classification

• Lower tax rates for qualified agricultural use

4. Other Potential Relief

• Disability exemptions
• Special programs depending on income or property use

(Each requires an application—these are not automatic.)

Why This Matters for Buyers & Investors

Understanding Maui property taxes can dramatically impact your investment strategy:

• A home used as your primary residence = lower taxes
• A vacation rental or second home = significantly higher taxes
• Converting to a long-term rental may reduce your tax rate

Even two identical homes can have very different tax bills depending on classification and exemptions.

Pro Tip: Don’t Miss the Deadline

One of the most common (and costly) mistakes is not filing for the home exemption on time.

• You must apply by the county deadline (typically December 31)
• If you miss it, you could pay thousands more in taxes for the year

Final Thoughts

Maui’s property tax system is unique—but once you understand the basics, it becomes a powerful tool for planning your homeownership or investment strategy.

The key takeaways:

• Your classification determines your rate
• Your exemptions reduce your taxable value
• Filing correctly and on time can save you thousands annually

For more information visit the County Real Property Tax Assesment Division 

https://www.mauicounty.gov/1952/Real-Property-Assessment-Division