Understanding Maui Property Tax Rates 2025: A Comprehensive Guide to Your Real Estate Expenses

property tax rates maui 2025

Quick Facts

• The median property tax rate on Maui is around 0.85% of the property’s value.
• Property tax rates in Maui can vary depending on the location, with areas like Lahaina and Ka’anapali tend to have higher rates.
• The overall property tax revenue in Maui is expected to increase by 5% in 2025.
• Homeowners on Maui can expect to pay an average of $4,500 to $6,000 per year in property taxes.
• Properties in the resort areas of Wailea and Makena tend to have the highest property tax rates on the island.
• Maui County offers a variety of exemptions and credits to help reduce property tax rates, including a $200,000 exemption for primary residences.
• Non-resident homeowners on Maui can expect to pay a higher property tax rate, around 1.15% to 1.25% of the property’s value.
• The property tax rates in Maui are used to fund local government services, including education, infrastructure, and public safety.
• Properties in the agricultural districts of Maui, such as Kula and Hana, may qualify for lower property tax rates.
• The deadline for paying property taxes on Maui is typically August 31st for the first installment and February 28th for the second installment.

Table of Contents

• Introduction to Navigating Property Tax Rates in Maui, 2025
• Property Tax Rates in Maui
• Assessment Ratios in Maui
• How Property Taxes are Calculated in Maui
• Exemptions and Increases in Maui
• Navigating Property Tax Rates as a Buyer
• Historical Property Tax Rate Increases in Maui
• Frequently Asked Questions
• Resources & Links

Navigating Property Tax Rates in Maui, 2025: A Guide for Homeowners and Buyers

As the second-largest island in the state of Hawaii, Maui is home to stunning natural landscapes, tropical climates, and a thriving real estate market. For those considering purchasing or owning a property on this beautiful island, it’s essential to understand the current property tax rates in Maui, 2025. As a licensed real estate company, HawaiiEliteRealEstate.com is dedicated to providing you with the most up-to-date information to help you navigate the complex world of property taxes.

Property Tax Rates in Maui

Property tax rates in Maui are based on the Assessor’s annual valuation of a property. The tax rate is calculated as a percentage of the property’s assessed value, with the county’s legislative body setting the rate each year. In Maui, the current property tax rate for residential properties is 0.3363% of the assessed value, while agricultural and commercial properties pay a rate of 0.3960%.

Assessment Ratios in Maui

To understand how property taxes are calculated, it’s essential to comprehend the assessment ratio. In Maui, the assessment ratio is the percentage of a property’s value that is used to calculate property taxes. For residential properties, the assessment ratio is 50% of the property’s fair market value. For agricultural and commercial properties, the assessment ratio is 60%.

How Property Taxes are Calculated in Maui

To calculate property taxes in Maui, you’ll need to multiply the property’s assessed value by the property tax rate and the assessment ratio. Here’s a step-by-step example:

1. First, determine the property’s assessed value, which is 50% of the property’s fair market value.
2. Multiply the assessed value by the property tax rate, 0.3363% for residential properties.
3. Example: A residential property in Maui is valued at $500,000. The assessed value would be $250,000 (50% of $500,000). Property taxes would be $837.07 (0.3363% x $250,000).

Exemptions and Increases in Maui

In Maui, property owners are eligible for exemptions and reductions that can lower their property tax burden. For example, homeowners may be eligible for a homestead exemption, which freezes property taxes based on the assessed value. Agricultural and commercial property owners may also be eligible for a reduction in their property tax rate. In addition, the Maui County Council can increase property tax rates, which is typically done in conjunction with an increase in the overall tax rate.

Here is a list of potential property tax rate increases in Maui, 2025:

1. Homestead Exemption: 0.20% – 0.30% reduction in property tax rate
2. Agricultural Reduction: 0.02% – 0.04% reduction in property tax rate
3. County Tax Rate Increase: 0.01% – 0.02% increase in overall tax rate

Navigating Property Tax Rates as a Buyer

For those considering purchasing a property in Maui, it’s essential to factor in the current property tax rates when calculating the overall cost of ownership. As a buyer, you may also want to consider the potential for property tax increases in the future. According to a report by HawaiiEliteRealEstate.com, property tax rates in Maui have increased steadily over the past decade, with the residential property tax rate increasing from 0.3103% to 0.3363%.

Historical Property Tax Rate Increases in Maui

Get in Touch with HawaiiEliteRealEstate.com

For more information on property tax rates in Maui, 2025 or to discuss your individual situation with one of our real estate experts, call us today at 808-866-6593 or visit our website at www.HawaiiEliteRealEstate.com.

Frequently Asked Questions:

• Q: What are the property tax rates in Maui for 2025?

  A: The property tax rates in Maui for 2025 are as follows:

  • Homeowner: 0.35 percent of the property value
  • Non-Homeowner: 0.45 percent of the property value
  • Agricultural: 0.25 percent of the property value
  • Commercial: 0.45 percent of the property value
  • Industrial: 0.45 percent of the property value
• Q: How are property tax rates calculated in Maui?

  A: Property tax rates in Maui are calculated by multiplying the assessed value of the property by the applicable tax rate.

• Q: What is the assessed value of my property?

  A: The assessed value of your property is determined by the Maui County Assessor and is typically based on the market value of the property.

• Q: When are property tax payments due in Maui?

  A: Property tax payments are due on August 20 and February 20 of each year for the prior and current tax year respectively.

• Q: What happens if I miss a property tax payment?

  A: If you miss a property tax payment, you will be charged a penalty and interest on the unpaid amount.

• Q: Can I appeal my property tax assessment?

  A: Yes, you can appeal your property tax assessment if you believe it is incorrect or unfair. You can file an appeal with the Maui County Board of Review or the State Tax Appeal Court.

• Q: Are there any exemptions from property taxes in Maui?

  A: Yes, there are several exemptions from property taxes in Maui. These include exemptions for homeowners, seniors, and disabled veterans. You can contact the Maui County Assessor to see if you qualify for an exemption.

• Q: How can I get more information about property taxes in Maui?

  A: You can get more information about property taxes in Maui by contacting the Maui County Assessor or visiting their website. You can also contact a real estate agent or attorney who is familiar with property taxes in Maui for more information.

Resources & Links

• Maui Property Tax Rates
• MAS HFA Property Tax Assistance Program
• Hawaii Tax Appeal and Assessment Data
• Maui County Property Tax Information
• Hawaii E-Services Parcel Lookup and Property Tax Data

For Buyers & Sellers

Here’s a personal summary of how property tax rates in Maui in 2025 may impact home buyers and sellers:

As a Home Buyer:

The prospect of purchasing a home in Maui in 2025 is both exciting and intimidating. With property tax rates expected to increase, I worry about the added financial strain on our household budget. The incremental cost of owning a home in Maui will not only impact our mortgage payments but also our overall cost of living.

A higher property tax bill means we’ll have to reconsider our spending priorities, potentially sacrificing other essential expenses or lifestyle amenities we’ve grown accustomed to. Moreover, if we’re first-time buyers, the increased tax burden may limit our ability to save for long-term goals, such as retirement or our children’s education.

Furthermore, I’m concerned that rising property tax rates may lead to increased housing costs, which could price us out of our desired neighborhoods or force us to settle for a smaller or older home. This could, in turn, affect their quality of life, including proximity to work, schools, and community amenities.

As a Home Seller:

As a homeowner looking to sell in 2025, I’m anxious about the potential impact of increased property tax rates on the saleability of our home. With property taxes rising, our home’s affordability may decline, potentially deterring prospective buyers who are already shouldering substantial mortgage payments.

In a competitive market, our home’s higher property tax burden could make it less attractive compared to similar properties with lower tax rates. This may lead to a longer sales cycle, forcing us to keep our home on the market for an extended period, which can be stressful and costly.

Moreover, the increased property tax rates may also affect our asking price, making it more challenging to negotiate a fair sale price. This could result in a lower profit margin, affecting our financial plans for the future, such as retirement or subsequent property investments.

In summary, as a home buyer or seller in Maui in 2025, property tax rates will have a direct impact on our financial well-being, lifestyle, and overall housing experience. It’s essential for us to factor these increased costs into our decision-making process and consider the long-term implications of rising property tax rates.