Make sure to claim additional property tax relief in Honolulu

Honolulu homeowners have until Oct. 2 to file for increased property tax exemptions that Grassroot Institute helped become law

from Grassroot Institute, Sept 30, 2023

Monday, Oct. 2, is the deadline for Honolulu homeowners to apply for property tax relief advocated by the Grassroot Institute.

Individuals and families who own and live in their homes might be eligible for a homeowner exemption that deducts $120,000 from their property's taxable value.

Homeowners who are 65 years or older can receive a greater exemption of $160,000.

Honolulu lawmakers increased both exemptions earlier this year.

Taxpayers whose houses are currently registered in the exemption program don't need to reapply every year; the exemption is granted automatically.

In addition, homeowners who have a homeowner exemption and whose combined household income does not exceed $80,000 are eligible for a reduced property tax bill that is limited to no more than 3% of their total income. For example, a household making $80,000 a year would not pay more than $2,400 in property taxes.

The Institute played a vital role in increasing the value of these programs. Through advocacy and collaboration with the City Council and mayor, it helped increase the homeowner exemptions and income eligibility for the tax cap by $20,000 each.

The homeowner exemption increase of $20,000 is expected to save taxpayers about $10 million at the current rates.

If you want to learn more about the homeowner exemption, go here; about the tax cap, here.