HOME EXEMPTION Initially enacted in 1896 by the Republic of Hawaii, the home exemption law aimed to alleviate tax burdens, foster home ownership, and promote land settlement. At its inception, the exemption amounted to $300.

 

Commencing the tax year 2024-2025, the home exemption stands at $120,000 for homeowners under 65 and those without recorded birthdates. This deduction is subtracted from the property's assessed value, with the remaining balance subject to taxation. For homeowners aged 65 and above, the exemption increases to $160,000. To qualify, individuals must reach the age of 65 by June 30 of the tax year in question.

Existing property owners with active home exemptions, provided their birthdates are on record, need not reapply for revised exemption amounts. The exemptions will automatically adjust based on the homeowner's age.

 

WHO QUALIFIES FOR A HOME EXEMPTION? You are eligible for the home exemption if:

• You own and reside in the property as your primary residence. ("Real property owned and occupied as the owner's primary residence" signifies residency in the city with the intent to continue living there. Indications of this intent include, but are not limited to, residing in the city for over 270 days in a calendar year, registering to vote in the city, being stationed in the city under United States military orders, and filing state income taxes with a reported city address.)

• Your ownership is recorded at the Bureau of Conveyances, State Department of Land and Natural Resources, in Honolulu by September 30 preceding the tax year you claim the exemption for. For leased properties, the lease must indicate residential use for five years or more and responsibility for property taxes.

• You submit a claim for the home exemption online or complete Form (E-8-10.3) with the Real Property Assessment Division by September 30 preceding the tax year you claim the exemption for. In case of non-receipt of email confirmation post-submission, contact the office.

• Properties held under company names like LLCs are ineligible for the home exemption. For further details, contact our office at (808) 768-3799.

 

SINGLE HOME EXEMPTION The law allows for one home exemption. If spouses live separately and own individual homes, each qualifies for half of an exemption or an apportioned exemption based on respective property values.

 

IF YOU SELL, RENT MORE THAN TWO BEDROOMS, OR MOVE Any changes affecting eligibility for the home exemption, such as ceasing occupancy, property ownership, or renting more than two bedrooms, must be reported via Form M-8-10.1 to the Real Property Assessment Division, Department of Budget and Fiscal Services, City and County of Honolulu, within 30 days of occurrence. Failure to report within this timeframe may result in penalties and additional property taxes.

 

HOME EXEMPTION CONTINUANCES Homeowners temporarily relocating from their primary residence may retain their existing home exemption under specific conditions:

• The initial home exemption must be filed for the primary residence.

• Owner relocates to a long-term care or licensed adult residential facility.

• Owner moves to a temporary city residence during home renovation.

• Owner temporarily moves outside the city for sabbatical or work assignment, returning within 24 months.

• Owner shifts to a temporary city residence due to fire damage or destruction, returning within 24 months.

The referenced ROH can be accessed on the Revised Ordinances of Honolulu webpage, and forms are available for download on the Exemption Forms webpage.