Honolulu Property Tax Exemptions: How to Lower Your Bill

Every year, homeowners across Oʻahu pay more property tax than they legally have to — simply because they never filed for an exemption they qualify for. Unlike a lien or a foreclosure notice, this is one of the few things on this site that's entirely good news: it's money you can put back in your pocket, if you know to ask for it.

The Home Exemption: the one almost every owner-occupant should have

If you own and live in your home as your principal residence, Honolulu's Home Exemption reduces the taxable value of your property by $120,000 — which directly lowers your bill every single year going forward. It's not automatic. You have to file an application with the City and County of Honolulu's Real Property Assessment Division, and it generally needs to be on file by September 30 to apply to the following tax year.

If you bought your home, inherited it, or started living in it as your primary residence and never filed this paperwork, you may be paying significantly more than you need to — for years. Note: starting July 1, 2027, the home exemption amounts are set to increase to $140,000 (or $180,000 for the 65+ exemption below) — always confirm the current figures directly with the Real Property Assessment Division when you file.

The Kupuna Exemption: additional savings for older homeowners

On top of the standard Home Exemption, Honolulu increases the exemption to $160,000 for homeowners who are 65 or older, often called the Kupuna (elderly) exemption. If you already have the Home Exemption on file and you turn 65, you generally need to file an age exemption claim to actually receive the higher amount — it isn't always applied automatically just because of your birthday.

Other situations worth checking

• Disability exemptions. Additional property tax relief may be available for homeowners with certain disabilities.
• Newly inherited or transferred property. If a home changed ownership — through inheritance, a trust transfer, or a name change — the exemption on file may need to be refiled under the new owner's name.
• Circuit breaker / tax credit programs. Honolulu has offered additional relief programs in some years for homeowners whose property tax exceeds a percentage of their income — worth checking current eligibility each year.

Why this matters if you're already struggling

If you're behind on your mortgage, dealing with a tax lien, or just feeling squeezed by rising costs, confirming you're not overpaying on property tax is one of the simplest things you can check — and it costs nothing to find out. It won't solve every financial pressure, but for many homeowners it's real, ongoing relief that's easy to miss simply because nobody told them to apply.

How to check and apply

• Contact the City and County of Honolulu's Real Property Assessment Division to confirm what exemptions are currently on file for your property.
• File the Home Exemption claim if you don't already have one and you own and occupy the property as your primary residence.
• File an age exemption claim once you qualify by age — don't assume it's automatic.
• Watch the September 30 filing deadline each year for changes to apply to the following tax year.