The County of Maui has adopted new real property tax rates effective July 1, 2026. Whether you own a primary home, an investment property, or a vacation rental, here's what changed from the prior year — and what it means for your bottom line.

The Big Picture

Most of the rate changes are surgical rather than sweeping — but a few categories saw significant shifts. The clearest signal from the County Council: high-value investment and second-home properties are being taxed harder, while owner-occupants at the mid-range and below get some relief. Notably, the tier breakpoints themselves were also adjusted for key categories, which can matter as much as the rate change itself.

Rate Changes by Category

Rates are per $1,000 of net taxable assessed value. FY2025–26 rates were effective July 1, 2025; FY2026–27 rates are effective July 1, 2026.

Source: Maui County Resolution No. 25-88 (FY2026–27) and Resolution No. 24-78 (FY2025–26). Rates per $1,000 of net taxable assessed value.

Five Things Property Owners Should Know

1. Luxury homesteads face a steep jump — but mid-range gets relief

The owner-occupied Tier 3 rate nearly doubled, rising from $3.25 to $5.75 per $1,000. On a $6 million primary residence, that's roughly $15,000 more in annual taxes. However, the Tier 3 threshold was also raised from $3M to $4.5M — so a $4M primary home that previously sat in Tier 3 now falls in Tier 2, at a lower rate than before. Tiers 1 and 2 saw modest rate reductions, offering genuine relief for mid-range homeowners.

2. High-value investment properties face a significant increase

The non-owner-occupied Tier 3 rate jumped from $14.00 to $17.00 — a $3.00 increase per $1,000 of assessed value. On a $4 million investment property, that translates to roughly $12,000 in additional annual taxes. Tier 2 also nudged upward. The County is clearly using the tax code to apply greater pressure on high-end second homes and investment holdings.

3. Permitted B&B and STRH owners at lower values get meaningful relief

The commercialized residential category — which covers owner-occupied properties operating a permitted B&B or short-term rental home permit — saw the largest rate cuts in the schedule. Tier 1 dropped from $4.00 to $2.00 and Tier 2 from $5.00 to $3.00 — cuts of 50% in both cases. Owners in this category on properties under $3M will see their tax bills shrink noticeably.

4. Long-term rentals continue to get favorable treatment

The long-term rental category remains one of the lowest-taxed non-owner-occupied classifications, with rates largely holding steady. Tier 1 saw a small cut. This reflects the County's ongoing effort to incentivize landlords to offer 12-month-plus leases to local residents rather than converting units to short-term or vacation use.

5. Tier breakpoints changed — not just the rates

For owner-occupied and long-term rental properties, the tier thresholds were adjusted alongside the rates. Owner-occupied Tier 1 now extends to $1.3M (previously $1M), and Tier 2 now tops out at $4.5M (previously $3M). These adjustments partially offset what might appear to be significant rate hikes for mid-range homeowners. Where your assessed value falls relative to the new thresholds matters as much as the rate itself.

Frequently Asked Questions

When do the new rates take effect?

The new rates are effective July 1, 2026, which is the start of Maui County's fiscal year 2026–27. Your tax bills issued for FY2026–27 will reflect these updated rates.

How do I know which classification my property falls under?

Classification is based on the property's highest and best use, with specific exceptions for home exemptions, long-term rental exemptions, and permitted vacation rentals. You can look up your current classification at mauipropertytax.com or by contacting the Maui Real Property Assessment Division at 808-270-7297.

What is the home exemption and do I qualify?

The home exemption reduces the assessed value on which you're taxed and is available to owner-occupants using the property as their principal residence. It also qualifies your property for the owner-occupied tax rate — substantially lower than the non-owner-occupied rate. You must file for the exemption; it is not applied automatically.

My condo is in a resort area — does that automatically make it TVR-STRH?

Not necessarily. Classification depends on how the property is actually used and permitted, not just its location. If your condo is rented short-term (less than 6 consecutive months) without a home exemption and without a qualifying long-term rental exemption, it will typically fall into TVR-STRH or non-owner-occupied. If you have an active home exemption and a permitted STRH, it may qualify as commercialized residential — which carries a very different rate.

What qualifies as a long-term rental for tax purposes?

A long-term rental is a dwelling unit rented to the same tenant for 12 consecutive months or more, and the property must have been granted a long-term rental exemption by the County. You can't simply claim the lower rate — the exemption must be applied for and approved. Contact the Real Property Assessment Division for the application process.

How do I calculate what I'll owe?

The formula is straightforward: (net taxable assessed value ÷ 1,000) × applicable rate. Net taxable value is your assessed value minus any exemptions. For tiered categories, each portion of value is taxed at its tier's rate — not the full value at the highest tier. The County's How to Calculate Real Property Taxes guide walks through the math with examples.

Can I appeal my assessed value?

Yes. Property owners can appeal their assessed value to the Board of Review. Appeals must typically be filed within 30 days of receiving your assessment notice. If you believe your property has been overvalued or misclassified, consult with a real estate professional or tax advisor familiar with Maui's assessment process.

Where can I get more information or verify my current tax status?

The County of Maui's Real Property Assessment Division is the best resource. You can search your property at mauipropertytax.com, call 808-270-7297, or visit the Department of Finance at 200 S. High St., Wailuku. Office hours are Monday through Friday, 7:45 AM to 4:30 PM.

This post is for informational purposes only and does not constitute tax or legal advice. Rate information sourced from official Maui County resolutions. For questions about how these changes may affect your specific property, contact a licensed real estate professional or tax advisor.

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