A – In Maui, we have ten different classifications. Property taxes are based on how you use it and ownership. You could have the same property that can be taxed as a residential property, or an apartment, or a single family home.
There are many people who have been asking me about counting tax rates. What are the taxes in Maui real estate?
In Maui, we have ten different classifications. Property taxes are based on how you use it and ownership. You could have the same property that can be taxed as a residential property, or an apartment, or a single family home.
Homeowners’ tax is the least expensive one, with a $200,000 exemption. After the $200,000 exemption, the base rate is $2.87 per thousand.
To give you an idea, for a $1,000,000 house, that is just roughly $2200.96 a year, pretty low. For a property that costs $500,000, that is $861.
The tax rate changes July 1st every year for all the classifications. They reassess the amount. It’s been pretty consistent so far, between at $2.50 and $3.00, for home owners.
The other ones, that are equally important, one is the vacation rental property tax, which would be considered for hotel and resort. That would be for a condominium that you do vacation rental on, that one is a bit higher $9.40 per thousand, no exemption.
Residential, if you own the property as a second home. It could still be a condo, but you call it a second home and you don’t rent. The tax is at $5.75 per thousand.
Two other ones, time share which is quite high. That is at $15.55 per thousand.
And lastly, new classification is commercial residential, including bed and breakfast. This is a property that has live work , upstairs residential maybe or downstairs rental property, comm space. That goes at $4.60 sort of a blended rate between a homeowner and residential.
You can check out mauipropertytax.com for more details about tax rates. You can also go to my website as I have the latest information, since these rates are updated every year. I look forward to helping you choose the right Maui for you.