Hawaiʻi’s Homeowner Exemption, Explained: One Form That Could Save You Money Every Year

A Simple Guide for Hawaiʻi Island Homeowners

You bought a home—congratulations! Now there’s one important piece of paperwork you don’t want to overlook: your Homeowner Exemption. If the home is your primary residence, the exemption can lower your taxable assessed value, place your property in the Homeowner tax class, and provide a 3% cap on annual increases to your assessed value. 

To qualify, your Hawai’i home must be your primary residence, and you must occupy it for more than 200 days per year. Your ownership must typically be recorded by December 31 before the tax year you’re claiming. You’ll also need to file RP Form 19-71 by the applicable deadline: December 31 for the first-half tax bill or June 30 for the second-half bill. If you’re a new Hawaiʻi resident or aren’t required to file a Hawaiʻi income tax return, check with the County about additional requirements. 

Your property use and living situation can also affect your exemption. Renting part of your home, operating a vacation rental, moving away, or changing how the property is used may affect your tax treatment. Certain changes must be reported to the County within 30 days, and if you move to a new home, your exemption does not automatically transfer—you’ll need to file a new claim. 

The Homeowner Exemption may seem like a small detail, but it can save you a lot of money over time. If you own a home on Hawaiʻi Island and live in it as your primary residence, check whether your exemption is on file and whether you still qualify. Requirements can change, so verify current information with the County of Hawaiʻi Real Property Tax Division.  

The Homeowner Exemption is only one of the exemptions available to Hawaiʻi Island homeowners. We’ll be covering other exemptions and programs in future posts, so stay tuned!  

At Salt Water Real Estate, we believe our job doesn’t end when you get the keys—we want you to understand what comes next, too. 

Buy. Sell. Stay. 

Salt Water Real Estate, saltwater heals everything!