Property taxes in Hilo are set by Hawaii County and run from $5.95 per $1,000 of value for owner-occupied homes to $13.60 per $1,000 for the top slice of high-value residential property. The rate you actually pay depends entirely on how your parcel is classified, and the single biggest step most Hilo homeowners can take to lower the bill is filing for the homeowner exemption, which both drops you to the lowest rate and shaves a fixed amount off your taxable value.
How Your Bill Is Calculated
The Real Property Tax Division values every parcel in the county at 100 percent of fair market value under Chapter 19 of the Hawaii County Code.1Hawaii County, HI. Real Property Tax Division Appraisers look at recent comparable sales, current market conditions, and any improvements on the land. Assessments are redone every year, so your value can move up or down with the Hilo market.
Your parcel is identified by a nine-digit Tax Map Key (TMK) printed on your annual assessment notice.2Hawaii State Office of Planning and Sustainable Development. TMK Help You will need it to check your value online, file for exemptions, or appeal. The actual tax is the net taxable value (assessed value minus any exemptions) divided by 1,000, multiplied by the rate for your classification.
Hilo Property Tax Rates for 2025–2026
For the fiscal year running July 1, 2025 through June 30, 2026, Hawaii County rates per $1,000 of net taxable value are:3County of Hawaiʻi Real Property Tax Office. Hawaii County Tax Rates
- Homeowner: $5.95
- Affordable Rental Housing: $5.95
- Agricultural and Native Forest: $9.35
- Commercial: $10.70
- Industrial: $10.70
- Residential: $11.10 on the portion below $2 million; $13.60 on the portion at or above $2 million
- Apartment: $11.70
- Conservation: $11.55
- Hotel and Resort: $11.55
Two details matter. The minimum tax on any parcel is $200 regardless of classification or exemptions. And the Residential tier split is applied only to the portion above $2 million under Ordinance 22-26, so a $2.5 million home without a homeowner exemption pays $11.10 on the first $2 million and $13.60 on the remaining $500,000.3County of Hawaiʻi Real Property Tax Office. Hawaii County Tax Rates The county council sets these rates annually with the budget.
The Homeowner Exemption
If your Hilo property is your principal residence, this is the exemption that changes your bill the most. It does two things: it moves your parcel from the Residential rate of $11.10 per $1,000 down to the Homeowner rate of $5.95 per $1,000, and it subtracts a fixed amount from the assessed value before the rate is applied.
To qualify, you must occupy the home as your principal residence, file a Hawaii state income tax return as a full-time resident (or obtain a waiver), and not use the property as a vacation rental or primarily for business.4County of Hawaiʻi Real Property Tax Division. Home Exemption Program File the Home Exemption Claim form with a copy of your driver’s license or proof of age.
The subtracted amount scales with your age as of January 1 of the assessment year:
- Under 60: $50,000
- 60 to 64: $85,000
- 65 to 69: $90,000
- 70 to 74: $105,000
- 75 to 79: $110,000
- 80 and older: $125,000
Run the numbers on a $500,000 home. A homeowner under 60 with the exemption pays ($500,000 − $50,000) ÷ 1,000 × $5.95, or about $2,678. The same home at the Residential rate with no exemption pays $500,000 ÷ 1,000 × $11.10, or $5,550. The gap is nearly $2,900 a year. Not filing is one of the most expensive oversights a Hilo homeowner can make.
Other Exemptions Worth Checking
Totally disabled veterans whose injuries stem from active military duty can be exempted from property tax on their principal residence, owing only 50 percent of the minimum tax. Homeowners who are blind, deaf, or totally disabled and already carry a homeowner exemption can claim an additional $50,000 off taxable value. People affected by Hansen’s Disease may qualify for an exemption capped at $50,000 of total taxable value across all real property owned. Each of these requires a separate application with documentation.
Owners who rent long-term (six months or longer, with no stays under 180 days) can apply for the Affordable Rental Housing classification at the same $5.95 per $1,000 rate as owner-occupied homes. Applications open each October, and the deadline is December 31 before the tax year you’re applying for.5County of Hawaiʻi Real Property Tax Office. Rental Programs
Nonprofits using property solely for charitable or public-benefit purposes may qualify for exemption, but occupancy and use standards apply year-round, and losing eligibility can trigger retroactive assessments.
Agricultural Use Dedications
If you own ag land around Hilo, dedicating it to agricultural use shifts the tax basis from market value to agricultural productivity value, which is almost always far lower. Hawaii County offers a long-term dedication under Section 19-60 of the county code, requiring a minimum 10-year commitment to continuous commercial agricultural use, and a short-term dedication under Section 19-61 with a 3-year minimum.6Hawaii County. Rules 31, 31A, 31B, 34, and 34A7County of Hawaiʻi Real Property Tax Office. Agricultural Programs
Breaking the dedication early triggers a rollback: you owe the difference between what you would have paid at market value and what you actually paid at the agricultural rate, for every year of the dedication, plus a 10 percent penalty. The total becomes a lien on the property, and withdrawing cancels the special assessment for the current tax year too.8County of Hawaiʻi Real Property Tax. Request to Withdraw From Agricultural Use Program Before committing, work out what a rollback would cost if your plans change.
Payment Deadlines and Late Penalties
The tax year is split into two installments due August 20 and February 20. Payments must be received or postmarked by those dates. Miss one and a 10 percent penalty is added the next day, with an additional 1 percent interest on the first of every month that follows.9County of Hawaiʻi Real Property Tax Office. Payments On a $3,000 installment, the overnight penalty alone is $300.
You can pay online through the county’s portal at eHawaii.gov using an electronic check or credit card (small processing fee applies).10County of Hawaiʻi. County of Hawaii Online Real Property Tax Payments Mailing a check to the Treasury Division in Hilo or paying in person at county offices also works. Online confirmations post within a few business days; mailed checks take longer, so leave extra time near the deadline.
Appealing Your Assessment
If you believe your value is too high or an exemption was wrongly denied, you can appeal to the Tax Board of Review. Filing requires a non-refundable $50 deposit per parcel, payable by check to the Director of Finance.11County of Hawaiʻi Real Property Tax Office. Appeal Information Missing the deadline or omitting the deposit means automatic rejection.
Winning grounds include an assessed value that materially exceeds market value, methodology errors in how your property was appraised, or the wrongful denial of an exemption you qualified for. The fact that your value simply went up from last year isn’t a basis on its own; you need evidence, such as recent comparable sales at lower prices or documentation of conditions the appraiser missed.
If the Board rules against you, you have 30 days from the written decision to appeal to the Tax Appeal Court.11County of Hawaiʻi Real Property Tax Office. Appeal Information
What Happens If You Don’t Pay
Unpaid taxes keep accruing penalties and interest, and eventually the county can sell the property at a tax sale, where an investor pays off the delinquent taxes in exchange for rights to the parcel. The former owner then has a one-year redemption period to reclaim the property by paying the purchaser the full sale price plus 1 percent interest per month, which annualizes to 12 percent. The county does not mediate redemption; it happens directly between the former owner and the purchaser.12County of Hawaiʻi Real Property Tax. Tax Sale Frequently Asked Questions Let the redemption window close and the purchaser can take full title over a balance that was almost always manageable at the start.