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Maui County Property Tax Updates for 2025 Bringing Changes in Assessed Values and Exemptions

Posted by benjamen.harper@gmail.com on November 8, 2024

Changes in property taxes on Maui for 2025

Kahului, HI

Changes in property taxes on Maui for 2025Image

Quick Facts
Changes in Property Taxes on Maui for 2025
Frequently Asked Questions
For Buyers & Sellers
Resources & Links

Quick Facts

Here is the list of quick facts about changes in property taxes on Maui for 2025:

The 2025 property tax rates on Maui will decrease by 3.2% overall, with the average homeowner saving around $143 per year.
The residential property tax rate will drop from $5.54 to $5.35 per $1,000 of assessed value.
The commercial property tax rate will decrease from $6.05 to $5.85 per $1,000 of assessed value.
Agricultural property tax rates will remain unchanged at $4.75 per $1,000 of assessed value.
The homeowners’ exemption will increase from $100,000 to $150,000, providing more tax relief for primary residents.
The deadline to file for the homeowners’ exemption is December 31, 2024, for the 2025 tax year.
Maui County’s budget for 2025 is $863.6 million, a 4.6% increase from 2024.
The county plans to allocate $11.3 million to affordable housing initiatives in 2025.
Property tax revenues are expected to decrease by $14.5 million in 2025, mostly due to the reduced tax rates.
The total assessed value of all properties on Maui has increased by 10.4% since 2022, reaching $44.8 billion.

Changes in Property Taxes on Maui for 2025

As the new year approaches, property owners on the island of Maui are likely aware of the upcoming changes in property taxes for 2025. These changes are expected to impact homeowners and businesses alike, so it’s essential to understand what they mean and how they may affect you.

One of the significant changes is the elimination of the “Act 71 Exemption” which is set to expire on January 1, 2025. This exemption prevented many new properties that were specially assessed for tsunami and coastal hazards from being taxed at a higher rate. For property owners who are owners that were eligible for this before the new tax bills begin, will most likely experience an overall increase as the exemption will only provide protection for those that are eligible to continue with the ‘old’ assessment but if you’re originally exempt, most of the property tax will drop.

Another change affects homeowners who have purchased residential property after January 5, 2007, and are located in a ‘Categorical Exemption’ area. These areas include Lahaina and Kihei, where assessments are closer to county average rates. Homeowners in these areas may find their property taxes increase next year.

Moving forward, to better understand the implications of these changes, let’s break down the key aspects and how they may impact different types of property owners.

Property Type	Impacted by New Tax Changes	What’s at Stake?
Residential	Yes, in specific ‘Categorical Exemption’ areas	Higher taxes potentially
Commercial	No, but may be impacted by higher Assessment rates	Higher taxes potentially
Industrial	No, but may be impacted by higher Assessment rates	Higher taxes potentially

Assessment Rates Changes
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In addition to changes affecting property owners, the state of Hawaii is also expected to see an increase in assessment rates. This means that property values will be reassessed, and owners may face higher taxes. What do you do when your property assessment increases? How do you pay for it?

Item	Description	Reminders: Don’t Wait Until It’s Too Late
Act Out 71 Exemptions	Specially assessed new properties that will lose Exemption	Get a Reassessed Value Assessment ASAP
Assessment Costs	Revalued Assessment Rate (Exemption rate could be increasing)	Begin to plan ahead At the Right Time
Legal Property Rights	Take a Time When Legal Exemptions Becomes public knowledge	Understand the effects of the Increased rates at the time of property change
Stabilization of Local Tax	Retain the original tax bracket For long periods of time	Review and discuss possible exemption applications once changes go into effect
Exemptions Possibilities	Check with legal on the exemptions Exemption in state and local	Be Proactive – Begin the process Before it expires

To summarize, property owners on Maui will need to be aware of the upcoming changes in property taxes for 2025. These changes include the elimination of the Act 71 Exemption and increased assessment rates for other property types. For property owners to avoid unexpected surprises, consider the following steps:

* Understand the specific changes affecting your property type and location.
* Plan ahead by reviewing your property assessment and assessing the potential impact on your taxes.
* Use your assessment cost, act 71 exemptions as leverage to reduce or prolong your interest rates or buyback times along these items:

Contact Hawaii Elite Real Estate for expert real estate advice and guidance. With years of experience, our team can help you navigate the complexities of property taxes and find ways to minimize the impact. Call us today at 808-866-6593 to schedule a consultation and get started on protecting your assets.

Your Property Type	Contact Hawaii Elite today

Frequently Asked Questions:

Frequently Asked Questions: Changes in Property Taxes on Maui for 2025

Q: What are the changes in property taxes on Maui for 2025 compared to previous years?

A: For tax year 2025, the real property tax law provides for a tax rate of 12.5 mills for each $1,000 of assessed value.
Q: How will the changes in property taxes on Maui for 2025 impact me?

A: If you own property on Maui, you will need to pay more for property taxes in 2025 compared to previous years due to the higher tax rate of 12.5 mills for each $1,000 of assessed value.
Q: What adjustments have been made to the property tax rates on Maui for 2025?

A: The property tax rates on Maui have increased for tax year 2025. The previous rate was 10.45 mills for each $1,000 of assessed value. The new rate for 2025 is 12.5 mills for each $1,000 of assessed value.
Q: Are there any exemptions or credits available for property owners in Maui?

A: Yes, there are exemptions and credits available for Maui property owners. The Maui County Real Property Tax Law provides for various exemptions and credits, including an agricultural land use credit, a homestead credit, and exemptions for leased properties. Eligibility requirements and limitations apply.
Q: What is the due date for property taxes on Maui for tax year 2025?

A: The due date for property taxes on Maui for tax year 2025 is December 10, 2025. If this date falls on a weekend or holiday, the due date will be extended to the next business day.
Q: How can I make a payment for my Maui property taxes?

A: You can make a payment for your Maui property taxes online, by mail, or by visiting the Real Property Tax Division at the Maui County Building in Wailuku. Payment options, fees, and acceptable forms of payment may vary.
Q: Can I appeal my property valuation or tax assessment on Maui?

A: Yes, you can appeal your property valuation or tax assessment on Maui. To file an appeal, contact the Real Property Tax Division at the Maui County Building in Wailuku for instructions and deadlines.
Q: What is the maximum amount I can claim for the homestead credit on Maui?

A: The maximum amount you can claim for the homestead credit on Maui for tax year 2025 has not been announced yet. I will update this information when the maximum amount is made public.

Resources & Links

For Buyers & Sellers

As a Maui real estate professional, I’ve been closely monitoring the latest developments regarding changes in property taxes on Maui for 2025. For both home buyers and sellers, it’s essential to stay informed about these changes to make informed decisions in this shifting market.

Buyers:

* Increased tax burden: As property taxes rise, buyers may need to adjust their budget to accommodate the additional cost. This could mean re-evaluating the price range they’re willing to pay or considering properties that offer lower tax rates.
* Potential for higher mortgage payments: With increased property taxes, buyers may need to consider a higher mortgage payment or potentially even a larger down payment to cover the added cost.
* Long-term implications: As a buyer, you’ll want to consider the long-term implications of current property taxes on your mortgage and overall budget. A higher tax burden could impact your ability to sell the property in the future or your ability to refinance.

Sellers:

* Lower appreciation: As property taxes rise, sellers may see lower appreciation in the value of their property. This could impact their decision to sell or negotiate the price of their property.
* Increased competition: With higher property taxes, buyers may be more cautious, creating a more competitive market. Sellers will need to be prepared to negotiate and market their property effectively.
* Impact on equity: Sellers should consider the impact of increased property taxes on their equity in their property. A higher tax burden could reduce the equity in their property, making it more challenging to sell or refinance.