🌴A Guide to Hawaiʻi County Property Tax Exemptions

How You Can Save Money on Real Property Taxes

If you live on Hawaiʻi Island, you already know the cost of living can hit hard. But one place where you can get real help is through the County’s property tax exemptions. Whether you’re a homeowner, kūpuna, farmer, veteran, or someone with disabilities, there’s likely an exemption that can lower your tax bill.

This guide breaks everything down in simple, local-style English so you can understand what you qualify for — and how to apply.

Homeowner Exemptions (Owner‑Occupants)

If you live in your home as your primary residence, you can qualify for the basic homeowner exemption.

Basic Homeowner Exemption

• $110,000 off your assessed value (Example: If your home is assessed at $500,000, you’re only taxed on $390,000.)

Kūpuna Homeowner Exemptions

If you’re 60 or older, your exemption increases:

These are some of the most valuable exemptions in the state and can significantly reduce your tax bill.

Disability‑Related Exemptions

Totally Disabled Homeowner

• $85,000 exemption

• Must be certified as totally disabled.

Blind, Deaf, or Disabled

• $50,000 exemption

• Applies even if you’re not totally disabled.

Low‑Income Tax Credit (Homeowners)

If you’re a homeowner with limited income, you may qualify for a circuit breaker tax credit. This credit limits your taxes to a percentage of your income.

• Income limits and credit amounts vary each year.

• You must reapply annually.

🇺🇸 Veterans Exemptions

Totally Disabled Veteran

• Full exemption on your property taxes

• Must be service‑connected and 100% disabled.

Regular Veteran Exemption

• $50,000 exemption

• Applies to eligible veterans or surviving spouses.

Long‑Term Affordable Rental Exemption

If you rent your property to a local family at an affordable rate (per county guidelines):

• Exemption up to 100% of assessed value

• Must have a recorded long‑term affordable rental agreement.

This is one of the strongest incentives for keeping rentals affordable for local families.

Agricultural (AG) Exemptions & Programs

Hawaiʻi County offers several programs to support local farmers and protect agricultural lands.

Agricultural Use Dedication

If your land is actively used for farming and you dedicate it for AG use:

• Your land is assessed at AG rates, which are much lower than market value.

• Dedication periods are typically 10 years.

Pasture, Crop, and Orchard Categories

Assessment depends on the type of agriculture:

• Grazing/pasture

• Row crops

• Greenhouse operations

• Orchards / macadamia / coffee

Each category has its own reduced assessment value.

Agricultural Buildings Exemption

• 100% exemption for qualifying AG buildings used for farming operations (Barns, sheds, greenhouses, processing structures)

Native Forest Dedication

If you protect and maintain native forest on your land:

• Land can be assessed at significantly reduced rates

• Must follow conservation and management guidelines.

Important Agricultural Lands (IAL)

Some parcels designated as IAL receive:

• Lower assessments

• Additional protections and incentives

Other Exemptions

Charitable, Religious, or Nonprofit Use

• Full exemption for qualifying nonprofit properties.

Solar Water Heater Tax Credit

• Reduces taxable value for properties with qualifying solar water heating systems.

📌How to Apply

Most exemptions require:

• A completed application

• Proof of residency or age

• Last four digits of your SSN (Hawaiʻi County requirement)

• Supporting documents (veteran status, disability certification, AG plans, etc.)

Applications must be submitted by the statutory deadline, usually December 31 for the following tax year.

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Hawaiʻi County offers some of the most generous property tax exemptions in the state — especially for kūpuna, homeowners, and farmers. Taking advantage of these programs can save you thousands every year and help keep local families rooted in their communities.

⚠️ Note

Exemption amounts and program rules are subject to change. Always check with the Hawaiʻi County Real Property Tax Office for the most current information.  www.hawaiipropertytax.com