A question that is often asked is “How much will I pay for Maui property tax?” Maui offers some of the lowest property taxes around – especially for owner occupants. Property taxes in Maui are paid in 2 installments a year. In most cases, if you have a mortgage, taxes are paid by mortgage holder.
Property Value Assessments
Properties in Maui are reassessed every year and are based on generalized market conditions. The assessments are usually pretty close to the market value at the time the assessment was performed. There is often a 18-24 month lag between the time of the assessment and time of payment.
Owners get a assessment statement around March 15. Property taxes are due in 2 installments in August and the following February.
Maui Property Tax Rates
Here are the County Council’s approved property tax rates for fiscal 2018:
|Type||New Rate||Current Rate|
|Hotel & Resort||$9.37||$8.71|
The rates are multiplied by each $1,000 of net taxable assessed valuation for properties.
As approved by the Maui County Council for 2017-2018 tax year.
Property Tax Classification
- Property is classified based upon its highest and best use.
- Properties receiving homeowner exemptions, condominiums, permitted bed and breakfasts and permitted transient vacation rentals are exceptions.
- Properties which have been granted a homeowner exemption are classified as Homeowner. Here is the form to complete for Homeowner Exemption.
- Condominiums are classified upon consideration of their actual use (Apartment, Commercial, Hotel / Resort, Timeshare, Homeowner). Here is the condominium use declaration form.
- 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.
Understanding the tax year and timing is important when purchasing a property. As the buyer, you assume the rate that the previous owner had for the current tax year. If the previous owner had the homeowner exemption, that is great for you for the remainder of the tax year. If you qualify for exemptions, they must be filed according to strict schedules and exceptions are rare.