Honolulu’s property tax rates are low by national standards, but the city taxes investment property differently from a home its owner lives in. Getting the class right matters, because property tax is part of the payment used in a DSCR loan.
The classes that matter to investors
| Class | Applies to | Rate per $1,000, July 2026 to June 2027 |
|---|---|---|
| Residential | Owner-occupied homes, and non-owner-occupied homes assessed under $1 million | $3.50 |
| Residential A | Residential property assessed at $1 million or more without a home exemption | $4.00 on the first $1 million, $11.40 on the value above it |
| Transient vacation | Homes used as legal short-term rentals | $9.00 on the first $800,000, $11.50 above it |
| Hotel and resort | Hotel and resort property | $13.90 |
What the difference looks like
| Owner lives there | Investor owns it | |
|---|---|---|
| Assessed value | $1,400,000 | $1,400,000 |
| Class | Residential | Residential A |
| Annual tax, before any exemption | $4,900 | $8,560 |
| Per month | about $408 | about $713 |
On a home assessed at $1.4 million, the investor pays roughly 75% more each year than an owner-occupant would before exemptions. That difference goes straight into the monthly payment.
What to do before you make an offer
- Look up the current assessment and class for the parcel.
- Work out the tax in the class it will be in once you own it, not the seller’s bill.
- Add insurance, association fees and any lease rent, then calculate the DSCR.
Common questions
It is the property tax class for residential property assessed at $1 million or more that does not have a home exemption, which covers most investor-owned homes above that value. The portion over $1 million is taxed at a much higher rate.
No. A non-owner-occupied home assessed under $1 million is taxed at the Residential rate, though it does not get the home exemption an owner-occupant would.
See how the payment is calculated on the DSCR rental loans page.