How Do Property Taxes Work on Maui?

How Maui Property Tax Works

Maui County assesses and collects property taxes independently. The fiscal year runs July 1 to June 30. Assessed value is set by the county assessor and is typically below market value, though Maui has been aggressively reassessing in recent years to reflect rising prices. Tax bills are issued twice yearly — due August 20 and February 20.

2025/2026 Tax Rates by Classification

• Owner-Occupied (Homeowner): $2.71 per $1,000 — lowest rate, requires primary residence application
• Long-Term Rental (Residential): $5.81 per $1,000
• Short-Term Rental / Vacation: $11.85 per $1,000
• Commercial: $7.05 per $1,000
• Timeshare: $14.60 per $1,000
• Agricultural: $5.94 per $1,000
• Conservation: $5.94 per $1,000

The Tier System for High-Value Properties

For non-owner-occupied residential properties, Maui uses a tiered rate structure. Properties assessed above $3 million pay significantly higher rates on the portion above that threshold. A vacation rental property valued at $4 million does not pay a flat $11.85/$1,000 on the full value — the rate structure escalates above the $3M tier, which can push effective tax rates substantially higher on luxury investment properties.

The Homeowner Exemption

Owner-occupants who file for the homeowner exemption receive a deduction from assessed value before the tax rate is applied. The basic exemption is $200,000 (for owners under 60) up to $300,000 (for owners 70+). This exemption meaningfully reduces the effective tax bill for primary residents and is one of the most significant financial benefits of establishing primary residency in Hawaii.

Investment Property Tax Reality

Buyers who intend to rent their Maui property — particularly as a short-term vacation rental — must calculate their tax liability at the STR rate of $11.85/$1,000, not the homeowner rate. On a $2 million property, that is a $23,700 annual tax bill versus $5,420 for an owner-occupant. This is a material difference that must be underwritten in any investment analysis.

→ Maui County Real Property Tax

Jolanta's Feedback

I always walk investment buyers through a complete tax analysis before they make an offer. The rate you pay depends entirely on how you classify and use the property — and understanding your classification matters. I can connect you with a Maui CPA who specializes in property tax planning.