How much is property tax on Maui? This is the most common question that I receive from the people that are interested in investing on Maui.
Unlike other states, the value of a property is assessed by Maui County appraisers every year, based on a sophisticated formula that takes into consideration the sales in the area during that period of time.
Once the value is determined, a taxpayer is taxed a certain number of dollars for every thousand dollars of the assessed value, for that type of property.
For instance, if you own a resort condo, you will be taxed $8.20 for every thousand dollars of the assessed value. I.e. for a condo that is worth $1,000,000, property tax will be $8200/year.
If you own a second home, you are taxed $4.85 per $1,000 of the assessed value.
If you reside on Maui, you benefit of a $300,000 exemption/deduction from your taxable value. On top of this, if you reside in a house, you will be applied a $2.00 rate, versus $4.85 rate applied to second homes.
To make it easy, if you own a $1 mil home on Maui:
- as a second home, you pay $4,850/year;
- as a resident, you pay $1,400/year.
What a better incentive to move to Maui?
To get more information, please visit www.mauipropertytax.com.
To see all homes listed on Maui, visit www.westmauihome.com