Go to Top

Claim Your Honolulu Home Exemption & Save Big

聽 The video does not reflect the latest updates which are outlined below.

If you live in your home or condo聽as your primary residence in Honolulu County, that is the island of Oahu, you need to claim your Home Exemption. 聽This is a tax break that will save you thousands of dollars in property taxes.

You need to file聽by September 30, the annual filing due date. Your tax break will take effect next fiscal year, starting July 1st after the Sept filing deadline.


1.) Are you eligible?

You must own and聽occupy your Honolulu property, with the intent to live in it as your primary residence. You can only have聽one primary residence.

Proof that this is your primary residence could include:

聽聽聽聽聽聽 Evidence you live at this address for 270 calendar days per year.

聽聽聽聽聽聽 Subject address shows on your voter registration.

聽聽聽聽聽聽 Subject address shows on your State or Federal income tax return.

聽Also, you need to be at least 18 years of age and be a legal resident in Honolulu County.

2.) How much can you save:

The home exemption amount you may claim depends on your age by June 30th prior to the September 30th filing deadline, and taking effect July 1st the following year.聽

Update:聽 The brackets are now staggered as follows:

  1. $100,000, if you are below age 65. – This is the standard home exemption amount.
  2. $140,000, if you are age 65 and above.

Other home exemption age brackets previously available have been eliminated.

  • Spouses owning separate homes and living apart shall be entitled each to one-half (1/2) of one exemption.
  • A separate exemption claim should be submitted for each owner occupant.

The home exemption amount will be deducted from the assessed value. You will only be taxed on the net assessed value.聽 (Assessed value – home exemption = net assessed value)

Example: Let’s say our primary residence is assessed at $900,000. You are 65 years by June 30th this year and聽you file on time by Sept 30 this year.Effective July 1st next yearyou will only be taxed on $760,000 net assessed value ($900K – $140K = $760K). At the $3.50 rate per $1,000 assessed value this聽will save you $490 per year compared with having no home exemption.

But the real big savings are realized when, either:

  • your property is assessed at $1Mill or above, or
  • the property is zoned ‘Hotel & Resort’, e.g. a condotel

Because in Honolulu county there are three relevant property tax rates聽that come into play:聽

聽聽聽聽聽聽 Residential:$ 3.50 per $1,000assessed value – Regular residential property tax rate for homes and condos. That is about the cheapest residential property tax rate anywhere in the whole nation.

聽聽聽聽聽聽 Residential Rate ‘A’ (applies to residential properties assessed at $1Mill and above, without home exemption):UPDATE: new tax rate as of 7.1.2019:

$4.50 per $1,000 (0.45%)聽of the net taxable value聽for Oahu homes and condos assessed up to $1Mill that have聽not filed for the home exemption.
$10.50 per $1,000 (1.05%) of聽the net taxable value聽for Oahu homes and condos assessed above $1Mill聽that have聽not filed for the home exemption.聽

聽聽聽聽聽聽 Hotel and Resort:$ 13.90 per $1,000 assessed value – If your property is a resort zoned property, e.g. a condotel聽like Trump Tower, Ritz Carlton, Ilikai, or others. (Tax rate is almost 4 times聽the regular rate), unless you apply for the dedication for residential use.

Filing the home exemption will not only get you the $100K or $200K exemption amount, but also it will drop your tax rate on the net assessed value to the lower $3.50 per $1,000 assessed Residential rate!

Example luxury condotel:Let’s say you are 65 years old聽by June 30th this year and you bought聽a nice luxury condotel聽at the Trump Tower,聽assessed at $2Mill and you live in it as your principal residence, and you file by 9/30 this year. Effective 7/1 next year, besides the $490 savings per year for a $140K reduction in assessed value, you will drop your tax rate from $13.90 per assessed $1,000 to the lower $3,50 rate per $1,000 assessed.聽聽Calculation without vs with home exemption:

  • a.) $2Mill gross assessed x ($13.90/$1,000) = $ 27,800 tax without home exemption
  • b.) $2Mill – $140K home exemption = $1.86Mill net assessed value x ($3.50/$1,000) = $6,510 tax with home exemption.聽聽聽聽聽 —> Savings: $21,290 per year.

You see how the savings can be聽huge if you qualify for the home exemption, but you must file by the deadline.

UPDATE: As of July 2017, to claim the lower $3.50 residential tax rate for your condotel you will need to also file the dedication for residential use.

3.) How do you file?

UPDATE: You may now file directly online.

Or, click here to download form P-3. Make sure to file by the 9/30 deadline!

Complete the Parcel ID number on the top left corner in the 12-digit format, means skip the first digit #1 (#1聽represents Oahu) and include all zeros. If you count聽the digits from the back with all zeros and you skip the #1 first digit you should have 12 digits. Add “-HEX” at the end (for聽Home Exemption).

Complete聽your name, social security number and birthday. Remember you are entitled to a larger home exemption than the standard $100K if you are age 75 or above. That’s why you will need to attach proof of age, such as copy of your picture ID.

You will need to file again with attached proof of age when you enter the next age bracket. The tax office will no longer automatically switch you to the larger home exemption bracket. Go figure.

Fill in聽the property address聽and complete the rest of the form, including: I’m a legal resident of: “USA, Hawaii, Honolulu County”

Do you have a home exemption anywhere else?聽 Yes / No.聽 Remember you can only have one primary residence and therefore you can only claim one home exemption.

Include a photocopy of the form and a self addressed stamped envelope to get a stamped receipt. Make another photocopy for yourself so you know what you mailed in.聽 Instructions are on the back of the form including the address where to mail to.

That is our tip of the day.


We love to hear from you. Please let us know what you think.聽 Click聽Like,Share or Comment below.

~Aloha

Claim Your Honolulu Home Exemption & Save Big was last modified: September 11th, 2021 by George Krischke
George Krischke
Principal Broker (R) Hawaii Living See my other articles

Subscribe to Our Newsletter

Get 1 email / month with latest posts

Share Your Thoughts

18 Responses to "Claim Your Honolulu Home Exemption & Save Big"

  • Jin Hahn
    November 1, 2021 - 10:19 am Reply

    You said that only one home can be listed as Primary Residence. Does not mean in Hawaii? Or include 2nd home in other States, like California.

  • Albert Fu
    October 23, 2020 - 12:10 pm Reply

    How can I get the form?I just converted from lease to fee. Do I need to file a new form? They used to mmake the change on age bracket automatically If they don’t I want a form to do so. Thanks. albert fu 946 9705.

  • Benjamin Ruelas
    November 3, 2019 - 1:11 am Reply

    Moved to Hawaii in July of this year, I submitted the form to qualify for $120,000 exeption prior to the September deathline , not knowing that it had three age teers, I did enter current age on form I am currently 77 years old, can I still get $140,000 vise $120,000. If you enter your current age on form, should it be automaticaly honored for the appropiate teer.
    Please let me know if I have re-course
    Mahalo

    • George Krischke, Principal Broker, Hawaii Living LLC
      February 1, 2020 - 10:02 am Reply

      Aloha Benjamin Ruelas! If you filed a) by 9/30/2019, and b) attached the appropriate proof of your age 77 (copy of picture ID), then the $140K home exemption should automatically be effective 7/1/2020, the start of the new 2020 fiscal year.
      – Let us know if there is anything else we can do for you. We are here to help.
      ~ Mahalo & Aloha

  • Kathy Osgood
    January 7, 2019 - 8:01 am Reply

    What proof is required for the 270 days of the year? Many thanks K

    • George Krischke, Principal Broker, Hawaii Living LLC
      July 29, 2019 - 7:07 am Reply

      Aloha Kathy Osgood! Thank you for checking in. Proof that you live at the address most of the year or at least 270 calendar days per year could include:
      a) Your bills go to the subject address.
      b) The subject address shows on your voter registration.
      c) The subject address shows on your State or Federal income tax return.
      – Let us know if there is anything else we can do for you. We are here to help.
      ~ Mahalo & Aloha

  • Lisa Bennett Fillmore
    August 1, 2018 - 10:08 am Reply

    Aloha, can you still get the exemption if you rent out part of your house?
    If so how much square footage percentage can you rent out?

    • George Krischke, Principal Broker, Hawaii Living LLC
      August 14, 2018 - 3:08 am Reply

      Aloha Lisa Bennett Fillmore!
      Mahalo for asking.
      The J-3 home exemption application form requires you to indicate the building area (square feet) used for rental or business purposes.
      You are entitled to an exemption ‘only for the portion of the property which is exclusively occupied as your principal home.’
      For the full explanation and exceptions check here: https://www.honolulu.gov/rep/site/ocs/roh/ROH_Chapter_8a_10.pdf
      Let us know if you need anything else. We are here to help.
      ~ Mahalo & Aloha

  • Yvonne Macy
    July 14, 2018 - 7:07 am Reply

    Can u get this even is u have another property say on maui.. but u dont live there

    • George Krischke, Principal Broker, Hawaii Living LLC
      August 1, 2018 - 2:08 pm Reply

      Aloha Yvonne Macy!
      Thanks for asking.
      You may claim your home exemption only for one property, your primary residence. It does not matter how many 2nd homes, vacation homes, or investment rental properties you own in Hawaii or anywhere else.
      Let us know if you need anything else. We are here to help.
      ~Mahalo & Aloha

  • Risa Oram
    June 28, 2018 - 8:06 am Reply

    Has this home exemption changed since the new Trump tax plan was rolled out?

    • George Krischke, Principal Broker, Hawaii Living LLC
      June 29, 2018 - 10:06 pm Reply

      Aloha Risa! Thank you for checking in.
      The home exemption is a Hawaii state specific, local tax break for owner occupants. It remains unaffected.
      More about Honolulu property taxes here: https://www.hawaiiliving.com/blog/property-taxes-in-honolulu-county-oahu-explained/
      The new Trump 鈥楾ax Cuts and Jobs Act 2018′ is a federal tax reform. How the new federal tax reform applies to real estate here: https://www.hawaiiliving.com/blog/real-estate-tax-benefits/
      – Let us know if there is anything else we can do for you. We are here to help. ~Mahalo & Aloha

    • Risa Oram
      June 30, 2018 - 9:07 pm Reply

      George Krischke, Principal Broker, Hawaii Living LLC – Mahalo for your response and the links!

  • Nancy Van Affelen
    November 7, 2017 - 9:11 am Reply

    wonderful, especailly for older people.

    • George Krischke, Principal Broker, Hawaii Living LLC
      April 22, 2018 - 4:04 am Reply

      Mahalo & Aloha

  • Robert Afuso
    June 18, 2017 - 10:06 pm Reply

    Thanks for the info

    • George Krischke, Principal Broker, Hawaii Living LLC
      October 4, 2017 - 6:10 am Reply

      Aloha Robert. You are welcome. Let us know if there is anything else we can do for you. ~Mahalo & Aloha