How can you save up to $15,000 or more on your Oahu property tax? Make sure you file your homeowners exemption form by September 30! (October 2 this year because September 30 is a Saturday)
I recently met someone who didn’t file their homeowners exemption form when they bought their house last year, and as a result, their property tax bill is more than $15,000 higher than it would have been with the exemption filed.
Each time you move into a new primary residence, be sure to file your homeowners exemption form by September 30 so that you get the $120,000 homeowners exemption deducted from your tax-assessed value, and you also avoid having to pay the hefty Residential A tax rate for homes valued over $1 million (If you’re 65 or over, the exemption will now be $160,000, per bill 40).
Bill 40 was just passed last month, increasing the exemption by $20,000, and bill 37 increases the income limit from $60,000 to $80,000 for the property tax credit limiting the amount of property tax you owe to no more than 3% of your income.
It’s August now, so if you haven’t already filed your homeowners exemption form for your home, please make sure you do that as soon as you can.
Please make sure your homeowners exemption is filed by September 30 if it’s not already filed!
The below information was posted to LinkedIn by a great realtor I work with, Chip Lewis:
“Good news for homeowners on Oahu! 🏡 Bills 37 and 40 were recently signed into law, bringing some much-needed property tax relief to offset the high cost of living on O'ahu. While Honolulu County boasts some of the lowest property tax rates in the country, it also faces challenges with soaring property values.
Bill 40 is set to increase the home exemption amount for homeowners under 65 from $100,000 to $120,000, and for those aged 65 and older, the exemption rises from $140,000 to $160,000. This means a welcomed $70 reduction in the 2024 property tax bill for most homeowners – although, admittedly, it's just a small drop in the bucket considering the 30% assessed value increase many of us have experienced over the last couple of years.
On the other hand, Bill 37 offers a different type of assistance by raising the real property tax credit income limits from $60,000 to $80,000 (gross income) for homeowners whose current property tax exceeds 3% of the titleholders' gross income. This change brings a sigh of relief to retirees and low-income earners who have been longtime homeowners.
Mark your calendars! The 2024 tax year exemption filing deadline is October 2, 2023, so make sure to take advantage of these new opportunities. If you're unsure whether you have a homeowners exemption on your property, feel free to reach out to me, and I'll be happy to check for you.
For more information about these bills or to file a Home Exemption claim online, visit realpropertyhonolulu.com.
Click Property Records Search at the realpropertyhonolulu.com site to see your property’s tax information.