HOME EXEMPTION
The first home exemption law was enacted in 1896 by the Republic of Hawaii to provide some tax relief, encourage home ownership and the settlement of land. In 1896, the home exemption amount was $300.
Beginning tax year 2024-2025, the home exemption will be $120,000 for homeowners under the age of 65 as well as for homeowners who do not have their birthdate on file. This means that $120,000 is deducted from the assessed value of the property and the homeowner is taxed on the balance. For homeowners 65 years and older the home exemption is $160,000. To qualify for this exemption amount, you must be 65 years or older on or before June 30 preceding the tax year for which the exemption is claimed.
Property owners with an existing home exemption, with their date of birth on file, do not need to re-apply for the new exemption amounts. The exemption amounts will automatically increase depending on the age of the homeowner.
WHO MAY QUALIFY FOR A HOME EXEMPTION?
You are entitled to the home exemption if:
- You own and occupy the property as your principal home "real property owned and occupied as the owner's principal home" means occupancy of a home in the city with the intent to reside in the city. Intent to reside in the city may be evidenced by, but not limited to, the following indicia: occupancy of a home in the city for more than 270 calendar days of a calendar year; registering to vote in the city; being stationed in the city under military orders of the United States; and filing of an income tax return as a resident of the State of Hawaii, with a reported address in the city;
- Your ownership is recorded at the Bureau of Conveyances, State Department of Land and Natural Resources, in Honolulu on or before September 30 preceding the tax year for which you claim the exemption. In the case of a lease, the document must indicate that the lessee has a lease for residential purposes for a term of five years or more and will pay all property taxes;
- You file a claim for home exemption online or fill out Form (E-8-10.3) with the Real Property Assessment Division on or before September 30 preceding the tax year for which you claim the exemption. If you file online and do not receive an email confirmation after submission, please contact our office.
Property held in a company name, such as an LLC, may not receive a home exemption. Call our office at (808) 768-3799 for more information.
SINGLE HOME EXEMPTION
The law allows just one (1) home exemption; if spouses live apart and own separate homes, each shall be entitled to one-half (1/2) of one exemption or to an exemption apportioned between their respective homes in proportion to the assessed value.
IF YOU SELL, RENT MORE THAN TWO BEDROOMS, OR MOVE TO ANOTHER HOME
If there is any change which might affect your home exemption eligibility, such as no longer occupying the property as your home, ceasing to own the property, and/or renting more than two bedrooms of the property during the tax year, then you must report the change M-8-10.1 to the Real Property Assessment Division, Department of Budget and Fiscal Services, City and County of Honolulu. The report must be submitted within 30 days of the change. Failure to file a report within 30 days of any change in status may result in a penalty and additional real property taxes being assessed
