The City and County of Honolulu offers a special tax credit to homeowner occupants on Oahu. The credit is available to homeowners in certain situations.

Eligibility Criteria:

  • Real Property Tax home exemption must be in effect when the credit is applied for. If your property doesn't already have the home exemption, you'll have to wait another year to apply for the credit. With the home exemption in effect next year, you can apply for the property tax credit.
  • Owner(s) cannot own any other real estate, anywhere.
  • Combined income of all titleholders cannot exceed $60,000.
  • None of the taxpayers have violated Revised Ordinances of Honolulu Section 8-13.5 (Penalties relating to the County Tax Credit) by filing a false application or attesting to any false statements with the intent to defraud the city or evade the payment of real property taxes.  

Amount of the Credit

The tax credit figure is equal to 3% of  total income for all qualified homeowners. Property tax in excess of the 3% figure is the credit amount.  If the calculated credit amount exceeds the homeowners' annual property tax, then the credit is zero.  In other words, the credit applies only when the owners' annual property tax exceeds 3% of their income.

How the Credit is Administered

The City and County of Honolulu assigns the tax credit to your property taxes for the following year. When the property tax bill for the following year (July 1, 2020 to June 30, 2021) arrives in the mail, it will reflect the credit and show the net property tax due.

How to Apply for the Real Property Tax Credit

The Real Property Tax office issues the form on July 1st of each year.  Applicants must obtain and submit the application no later than October 1st in 2019.  Move quickly, at the time of this posting we have two months remaining until the deadline! 

Applicants must reapply for the tax credit each year.  Here's a link to this year's Oahu Property Tax Credit Application.

Penalties

  • Filing a false application for the credit may result in a criminal fine of up to $2,000.
  • Homeowners who have obtained the tax credit who are no longer eligible (e.g. took title to another property) should notify the City and County of Honolulu within 30 days. Failure to notify the City is punishable with a fine of $200.

If you qualify for the tax credit, don't miss out!

This is a great credit for Oahu homeowners who aren't highly compensated and for elderly homeowners.  Download the Oahu Property Tax Credit form here.

For additional information, call the Honolulu's Real Property Tax Office at (808) 768-3205.

Aloha, Mike

Mike Bates (Realtor Associate)
RS-54129
Century 21 iProperties Hawaii
1585 Kapiolani Blvd #1533
Honolulu, HI 96814

Oahu MLS