The Hawaii County Council has approved new property tax rates for fiscal year 2026-27 that reduce taxes for primary residences while significantly increasing rates for luxury second homes. Multiple sources report the changes are designed to address a $15 million budget shortfall and rising wastewater infrastructure costs.
- Primary residences and affordable rental housing will see a 20-cent reduction per $1,000 of taxable value, dropping from $5.95 to $5.75
- Second homes valued between $2 million-$4 million will face increased rates, with portions over $2 million rising from $13.60 to $14.50 per $1,000 (Bigislandnow) or $15.00 per $1,000 (other sources)
- New tier three rate of $17 per $1,000 applies to portions of second homes worth more than $4 million
- Long-term rental properties (6+ month leases to same tenant) set at $7.75 per $1,000 taxable value
- Changes expected to generate approximately $17 million in additional revenue to address budget shortfall
- Increased revenue needed partly due to required EPA wastewater system upgrades
- Resolution 574-26 passed 8-1 with one member absent during May 21 special meeting
Sources
- Bigislandnow: Hawaiʻi County property tax rates set for upcoming 2026-27 fiscal year
- Civil Beat: Hawaiʻi County Is Taxing Homes Of The Rich, But Others Get A Break
- Westhawaiitoday: County Council tweaks property tax rates
- Westhawaiitoday: Residents weigh in on tax hikes
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