With rising mortgage rates, escalating home prices, and inflation affecting various products, many individuals contemplating a home purchase in Maui are eager to find ways to reduce housing costs.
Fortunately, several avenues exist to save money on a home purchase in Maui and Maui County. One of the most advantageous approaches is to take advantage of the tax relief programs accessible to homeowners in Hawaii and Maui County. These tax exemptions are open to property owners within Maui County.
1. Homeowner Exemption: This valuable program can significantly lower the taxable assessed value of a property by up to $200,000. Eligibility is limited to homeowners who use the property as their primary residence for most of the year. To qualify, homeowners must consistently file Hawaii state property taxes for at least two consecutive years.
Link to the homeowner exemption form at the County of Maui website: lease to at least one tenant for a continuous period of 12 months or more, supported by a signed long-term lease contract. Additionally, property owners must be current on all property taxes. This tax exemption applies solely to residential properties and does not extend to commercial or industrial properties.
Link to the Long-Term Rental Exemption form at the County of Maui website:
For those interested in benefiting from this tax exemption program in 2023, the application deadline is December 31, 2023. Applicants should promptly visit the Maui County real property tax website and submit the application with a signed copy of the executed rental contract. Once approved, the tax exemption will take effect on January 1 of the upcoming assessment year.
For added convenience, submitting the application in person to the Department of Finance at 110 Ala'ihi Street, Suite 108, in Kahului is advisable.
This news is especially advantageous for property owners in Maui County who are not residents of Hawaii, as it encourages them to provide affordable long-term housing to Maui residents.
Can Both Tax Exemptions Be Combined in Maui County?
Qualifying for both tax exemptions is possible if a Hawaii resident owns multiple properties within Maui County. They can receive a $200,000 reduction on their owner-occupied property and potentially qualify for up to $100,000 in exemptions for each tenant-occupied property with a long-term rental agreement. These long-term property exemptions apply to multiple properties as long as they are situated on separate lots of land.
When dealing with tax exemptions, seeking professional tax advice for personalized filing strategies is crucial. While this information is helpful, consulting with tax professionals for precise eligibility and application details is important.
If you are considering purchasing or selling real estate in Maui, Hawaii, seeking guidance from qualified professionals is available. Maui Property LLC possesses the knowledge and resources necessary to prove expert consultation and help you achieve your objectives. Call 808-217-8832.
