Hawaii's property taxes are not used to fund education like many mainland states. The schools are funded from the state's general fund. Property taxes in Hawaii are used to fund the city and county administrations and programs and each county sets their own rates and handles the assessments differently.
County | Class | Net Taxable | Net Taxable | |
| Bldg. | Land | |||
| Per $1000 | Per $1000 | |||
| | Residential | $3.50 | $3.50 | |
| Commercial | $12.40 | $12.40 | ||
| Industrial | $12.40 | $12.40 | ||
| Agricultural | $5.70 | $5.70 | ||
| Vacant Agricultural | $8.50 | $8.50 | ||
| Preservation | $5.70 | $5.70 | ||
| Hotel & Resort | $12.40 | $12.40 | ||
| Public Service | $0.00 | $0.00 | ||
| | Homeowner | $2.50 | $2.50 | |
| Residential | $5.55 | $5.55 | ||
| Commercialized Residential | $4.20 | $4.20 | ||
| Apartment | $5.50 | $5.50 | ||
| Commercial | $6.25 | $6.25 | ||
| Industrial | $7.00 | $7.00 | ||
| Agricultural | $5.80 | $5.80 | ||
| Conservation | $5.60 | $5.60 | ||
| Hotel & Resort | $9.00 | $9.00 | ||
| Time Share | $15.00 | $15.00 | ||
| Hawaii | Homeowner | $5.55 | $5.55 | |
| Residential | $9.10 | $9.10 | ||
| Affordable Rental Housing | $5.55 | $5.55 | ||
| Apartment | $9.85 | $9.85 | ||
| Commercial | $9.10 | $9.10 | ||
| Industrial | $9.10 | $9.10 | ||
| Agricultural/Native Forests | $8.35 | $8.35 | ||
| Conservation | $9.85 | $9.85 | ||
| Hotel & Resort | $9.85 | $9.85 | ||
| Kauai | Homestead | $3.44 | $4.00 | |
| Single Family Residential | $4.25 | $3.95 | ||
| Apartment | $7.90 | $6.90 | ||
| Commercial | $7.90 | $6.90 | ||
| Industrial | $7.90 | $6.90 | ||
| Agricultural | $4.25 | $6.90 | ||
| Conservation | $4.25 | $6.90 | ||
| Hotel & Resort | $7.90 | $6.90 | ||
Nominal Rate (per $100): $0.37 Assessment Level: 100 percent Effective Rate (per $100): $0.37
Considering that Honolulu's major industry is tourism, it's not surprising that the county generates most of its tax revenue from sales taxes. But it may not stay that way for long. Honolulu Mayor Jeremy Harris just submitted his $1.8 billion operating budget, which would be subsidized in part by a 2.7 percent increase in residential property taxes.
Best States for Property Taxes
The Tax Foundation ranked the states based on property taxes paid as a percentage of median home value for owner-occupied homes in each state. This is a good way to rank the states because it provides a standardized number for comparison. For example, let’s take a hypothetical situation:Let’s say someone in State 1 is paying $2,000 a year in property taxes on a home worth $1 million and someone else in State 2 is paying $2,000 a year on a condo worth $150,000. The best way to compare those two states would be to figure the property taxes as a percentage of home value. The person in State 1 is paying only 0.2% of their home value in property taxes, while the person in State 2 is paying 1.33% of their home value in property taxes. When you look at it that way, it’s clear that the person in State 1 is getting the best deal, even though they are both paying the same dollar amount per year.
Using this methodology, the Tax Foundation found that people in Louisiana paid the least in property taxes. The full list of the top ten best states for property taxes along with the percentage of home value paid in property taxes is:
- Louisiana - 0.18%
- Hawaii - 0.26%
- Alabama - 0.33%
- Delaware - 0.43%
- West Virginia - 0.49%
- South Carolina - 0.50%
- Arkansas - 0.52%
- Mississippi - 0.52%
- New Mexico - 0.55%
- Wyoming - 0.58%
Worst States for Property Taxes
The Tax Foundation found that homeowners in these states paid the most in property taxes compared to home value. The percentages represent the percentage of home value that homeowners pay in property taxes.- New Jersey - 1.89%
- New Hampshire - 1.86%
- Texas - 1.81%
- Wisconsin - 1.76%
- Nebraska - 1.70%
- Illinois - 1.73%
- Connecticut - 1.63%
- Michigan - 1.62%
- Vermont - 1.59%
- North Dakota - 1.42%
