Buyer FAQ’s #1: What are Maui property tax rates?
One of the questions I get asked most often by Buyers is regarding Maui property tax rates. Our property taxes on Maui are some of the lowest in the country for homeowners. Maui property tax is calculated based on the assessed value of the property and usage. (See the chart below). The rates shown below are effective July 1, 2017, thru June 30, 2018
2017 – 2018 Maui Property Tax Rates
The Residential Tax Rate is $5.54
The Apartment Tax Rate is $6.32
The Commercial Tax Rate is $7.28
The Industrial Tax Rate is $7.49
The Agricultural Tax Rate is $6.01
The Conservation Tax Rate is $6.37
The Hotel and Resort Tax Rate is $9.37
The Time Share Tax Rate is $15.43
The Homeowner Tax Rate is $2.86
The Commercialized Residential Rate is $4.56
It’s important to keep in mind that your property tax will be calculated based on how your property will be used. Below are the guidelines for 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 that have been granted a homeowner exemption are classified as Homeowner.
Condominiums are classified upon consideration of their actual use (Apartment, Commercial, Hotel / Resort, Timeshare, Homeowner).
Properties that 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.
Exemptions to Decrease Your Net Taxable Assessment Value
As a property owner, you should be aware that there exemptions which can reduce your taxable assessment value. Most common is the homeowner exemption which if you own and occupy your property as your principal residence on January 1; you will be eligible for a single home exemption of $200,000. This amount will be deducted from your property assessment before your net taxable value is calculated. For example, if you own a house and lot valued at $550,000 and are eligible for a single home exemption of $200,000, you net taxable value will be $350,000. This figure is divided by 1,000 then multiplied by the homeowners tax rate, which is currently 2.86 or $1,001 annually.
Please keep in mind that the RPA Division does not automatically apply exemptions. You must file a claim for exemptions on or before December 31 to qualify for the following assessment year. Most forms are available at www.mauipropertytax.com.