Maui Property Taxes: Fiscal Year 2023 Tax Rates

Maui Property Taxes Fiscal Year 2023 (July 1 2022- June 30, 2023)
Changes: Classifications & Rates

Each year, Maui County does two things: assesses the value of the property AND sets new rates for the upcoming fiscal year, which runs from July 1st-June 30th.  Below is a snapshot of the new Maui County Property Tax Rates for 2022-2023 as well as a summary of how they've changed over the years.

How do you calculate your property taxes given the new tiered system?

Fidelity National Title put together this helpful video when the new tiered system was introduced in 2020.  Note the tier amounts have changed in 2022 from prior years.

Maui County Property Tax Rates 2022-2023 vs Prior Years

Rates are per $1000 of assessed value.  In 2020, the County introduced a new Tiered assessment.  Prior to that, there was a flat rate per the classification.

Maui Property Taxes: how have they changed? 2023 vs. 2022

• Owner Occupied/Homeowner.  The rates went down for Tiers 1 & 2, and held steady at Tier 3. 
  Tier 1 (-17%), Tier 2 (-16.33%), Tier 3 (0%)
• Residential:  The rate increased at all categories, particularly at the high end.   
  Tiers 1 (+7.34%), Tier 2 (+32.33%), Tier 3 (+56.25%)
• Short Term Rental: modest increases for all three tiers. 
  Tier 1 (+6.66%), Tier 2 (+6.28%) and Tier 3 (+5.80%)
• No Change (0%): Hotel & Resort, Timeshare, Commercialized Residential, Conservation
• Major Decrease: Apartment: -36.94%
• Modest Decreases: Agriculture (-3.37%)  Commercial (-3.82%), Industrial (-2.08%)

Looking back over the past 5 years, the county has decreased the property tax rates for homeowners and apartment owners and kept it fairly steady in others like Agricultural and Conservation zoning.  The largest increases have been to Short Term Rentals, Hotels & Resorts, and second homeowners. 

The County of Maui has been under pressure to keep housing affordable for local homeowners and residents and to provide affordable housing.  To incentivize owners to rent long-term (12-month leases or longer), they've introduced a lower property tax rate and an exemption (see Bill 129 below).

Per the Maui County property tax website: "Property is classified based upon its highest and best use. Properties receiving home exemptions, long-term rental exemptions, permitted bed and breakfasts and permitted transient vacation rentals are exceptions."

What do Maui County Classifications mean?

Per the Maui County website*, the County of Maui details the classifications of real property as follows:

• Time Share – real property that is subject to a time share plan as defined in section 514E-1, Hawaii Revised Statutes.
• Non-owner-occupied - real property improved with a dwelling, as defined in the comprehensive zoning ordinance, that would not be classified as “owner-occupied”, “hotel and resort”, “time share”, “short-term rental”, “commercial”, “industrial” or “commercialized residential”.
• Commercialized Residential – real property that serves as the owner’s principal residence and has been granted bed and breakfast home permit, a short-term rental home permit, or a conditional permit allowing a transient vacation rental use.
• Short Term Rental – lodging or dwelling units occupied by transient tenants for periods of less than six consecutive months, including real property that does not serve as the owner’s principal residence and has been granted a short-term rental home permit or a conditional permit allowing transient vacation rental use without regard to its highest and best use and cannot qualify for a home exemption.
• Apartment – multi-dwelling-unit improvements containing five or more dwellings that would not be classified “short-term rental”.
• Commercial
• Industrial
• Agricultural
• Conservation
• Hotel and Resort – properties occupied by transient tenants for period of less than six consecutive months, have eight or more lodging or dwelling units and employ more than twenty full time persons.
• Owner-occupied – properties owned and occupied as a principal home and for which a home exemption was filed and granted.
• NEW Long-term rental – lodging or dwelling units as defined in the comprehensive zoning ordinance occupied by long-term tenants for periods of twelve consecutive months or more to the same tenant and have been granted a long-term rental exemption.

Note: No definition was provided for Commercial, Industrial, Agricultural or Conservation.

*This information taken from https://www.mauicounty.gov/755/Classification-for-Tax-Rate-Purposes as of the date of this post.  It is subject to change.

Important Dates

• July 1—Tax year commences. Taxes are calculated based upon January 1 assessed values and fiscal year tax rates.
• July 20 — First half of fiscal year tax bills mailed.
• August 20 — First half of fiscal year tax payments due.
• September 1 — Deadline for filing dedication petitions.
• December 1 — Condominium AOAO use declaration.
• December 31 — Deadline for filing circuit breaker applications for the next fiscal year.
• December 31 — Deadline for filing exemption claims and ownership documents.
• January 1 — Assessed values established for use during the next tax year.
• January 20 — Second half of fiscal year tax bills mailed.
• February 20 — Second half of fiscal year tax bills due.
• March 15 — Assessment notices mailed.
• April 9 — Deadline for filing appeals.
• May 1 — Certified assessments forwarded to the County Council for budget purposes.
• June 20 — Tax rates established by the County Council

For additional information, all dates to remember, and appeals information visit the Maui County website

Maui Property Tax: What Changed in 2022?

In December 2020, the County Council unanimously passed Bill 129.  In an effort to bolster housing for local residents, the county passed Bill 129 which creates an additional tax advantage to someone choosing to rent their property on a long-term basis.  This bill essentially creates a "long-term rental" tax classification and exemption.   This took effect on January 1, 2022.

The long-term-rental exemption form is available with other forms at: https://www.mauicounty.gov/1953/RPA-Forms-andInstructions. The deadline to file for the long-term rental exemption for the next fiscal year is December 31, 2022

What could change in 2023? 

Update August 16, 2022

In July, the County Council met and passed the FIRST READING of Bill 93 (2022) to amend Sections 3.48.450 and 3.48.466, Maui County Code, to increase the homeowner exemptions for a principal home to $300,000, and amends the long-term rental exemptions, beginning January 1, 2023.

Note:  Information pulled from multiple county sources (MauiPropertyTax.com, Mauicounty.gov and the Municipal Code as of the date of this post.  However, it is subject to change as these websites are updated.  Please check with the County of Maui's real property tax division with any questions or to verify what rate applies to your property.  This post is informational in purpose and does not constitute legal or tax advice.