The 2022 – 2023 Maui Property Tax Rates have been released. There was a slight increase in rates for many of the classifications from the previous year.
These real property tax rates are shown per $1000 of net taxable assessed valuation. The rates shown below are effective July 1, 2022, thru June 30, 2023.
The Owner Occupied Tiered-rates are below:
- Tier 1: (up to $1,000,000) is $2.00
- Tier 2: ($1,00,001 to $3,000,000) is $2.10
- Tier 3: (more than $3,000,000) is $2.71
The Non-Owner Occupied Tiered-rates are below:
- Tier 1: (up to $1,000,000) is $5.85
- Tier 2: ($1,000,001 to $4,500,000) is $8.00
- Tier 3: (more than $4,500,000) is $12.50
The Short Term Rental Tiered Rates are below:
- Tier 1: (up to $1,000,000) is $11.85
- Tier 2: ($1,000,000 to $3,000,000) is $11.85
- Tier 3: (more than $3,500,000) is $11.85
The Apartment Tax Rate is $3.50
The Hotel and Resort Tax Rate is $11.75
The Time Share Tax Rate is $14.60
The Commercial Tax Rate is $6.05
The Industrial Tax Rate is $7.05
The Commercialized Residential Rate is $4.40
The Agricultural Tax Rate is $5.74
The Conservation Tax Rate is $6.43
Remember that Hawaii Property Tax Rates vary from island to island. If you plan to buy Maui Real Estate it is important to consider how you will use your property and determine how it will be classified.
How are Properties Classified?
Maui Properties are classified based upon its highest and best use. Properties which have been granted a homeowner exemption are classified as Homeowner. Maui condos are classified upon consideration of their higher possible use (Apartment, Commercial, Hotel / Resort, Timeshare, Homeowner). Properties which have been granted a bed and breakfast permit, a transient vacation rental permit, or a conditional permit to operate a transient vacation rental are classified as Commercialized Residential.
How are Properties Assessed?
Properties are assessed annually at 100% of market value by using the cost and market comparison approaches to value. County ordinance requires that leasehold properties be assessed in its entirety. Therefore, a fee simple value is determined.
Fair market value is the most probable price (in terms of money) a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently and knowledgeably. Locating, identifying, and appraising your property at fair market value is the responsibility of the Real Property Assessment Division of the Department of Finance.
Over the years, great strides have been made to improve the methods used to assess property in a uniform and fair manner. In the County of Maui there are in excess of 68,000 parcels and 70,000 structures that are required to be re-assessed annually. The number of appraisers in relation to the number of parcels in the county prohibits a personal inspection of each property on an annual basis. Normally, the inspection is undertaken only at the time of construction or remodeling. The “Mass Appraisal Method of Valuation” is applied using a computer assisted mass appraisal system. However, each property is given individual consideration.
Values are established annually as of January 1. These values will be used for the tax year which begins July 1 to compute taxes, which will result in your first billing due on August 20.
If you are an owner occupant, you may qualify for the homeowner’s exemption of $200,000 which reduces your net taxable value and the tax rate. If you own and occupy your property as your principal residence and file a Home Exemption Application by December 31, the exemption will take effect the following assessment year.