If you live on Oahu, own and occupy the property where you reside, you may be eligible for an $80,000 or $120,000 Home Exemption. The Home Owner’s Exemption lowers the amount of property taxes you are required to pay. Here’s how:
In this example, the City and County of Honolulu has determined that your home is valued at $980,000 and will use this figure for your real property tax, this is known as a tax assessed value. If you own and occupy this property you can qualify for an $80,000 home exemption. Instead of paying for a $980,000 property, you will only be responsible for $900,000. Here’s how your tax would be calculated with an $80,000 Home Exemption:
|Tax Assessed Value||X||Tax Rate||=||Annual Taxes|
|Tax Assessed Value||–||Home Exemption||=||Taxable Property|
|Taxable Property||X||Tax Rate||=||Annual Taxes with Exemption|
|Annual Taxes||–||Annual Taxes w/Exemption||=||EXTRA MONEY in your pocket|
For homeowners over the age of 65, the benefit is a little better with the exemption at $120,000. For the same property, a homeowner age 65 or wiser would only be responsible for $3,010 annually for a savings of $420 annually.
The deadline to file for this exemption is September 30th. You will not need to refile annually. Once you file, you are set as long as that is your primary residence.
To file for your Home Exemption visit www.realpropertyhonolulu.com
For help filing your exemption, or if you have additional questions, you can contact Jeff at (808) 372-2282 or email@example.com.