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Updated 2025 Tax Year

Kalawao County
Property Tax Guide

Everything you need to know about property taxes in Kalawao County, HI. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
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Quick Facts
Tax Rate
Approximately 1% base rate, varies by special taxing districts within county
Exemptions
5+ Available
Section 1

How Property Tax Works

Kalawao County, located on the island of Molokai, operates under Hawaii's decentralized property tax system where counties administer and collect property taxes to fund essential local services including schools, parks, emergency services, and infrastructure maintenance. As the smallest county in Hawaii by population, Kalawao County maintains a unique administrative structure while following the state's general property tax framework with a base rate of approximately 1% of assessed value.

Property tax rates in Kalawao County can vary by location within the county due to special taxing districts that may impose additional assessments for specific services or improvements. The county assesses properties annually, and unlike some states, Hawaii does not impose assessment caps that limit year-over-year increases in property valuations. Property owners should be aware that their actual tax liability depends not only on the base county rate but also on any applicable special district assessments and available tax credits that require separate applications.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
Base County Rate~$10.00 per $1,000General county operations and services
Special DistrictsVariesAdditional assessments for specific improvements or services
School AssessmentIncluded in baseFunding for local educational facilities

Note: 2025 tax rates have not yet been officially announced. Rates shown are estimates based on historical data. Special district rates vary by location within Kalawao County. Contact the Hawaii Department of Taxation for the most current levy year rates when available.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Kalawao County, property taxes are due in two installments:

Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes in Kalawao County are triggered by changes in property ownership, new construction, or significant property improvements that occur during the tax year. When these events happen, the county assessor determines the difference between the old and new assessed values, then calculates a prorated tax bill for the remainder of the fiscal year based on this difference.

For example, if you purchase a home in January that was previously assessed at $400,000 but now has a market value of $500,000, you would receive a supplemental tax bill for the $100,000 difference in assessed value, prorated for the remaining months in the fiscal year. This supplemental bill is separate from the regular annual property tax bill and typically arrives 30-90 days after the triggering event.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Less: Home Exemption Credit (if applied): -$160,000
  • Net Taxable Value: $140,000
  • Annual Tax ($10/$1,000): $1,400
  • Monthly Escrow: $117

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Less: Home Exemption Credit (if applied): -$160,000
  • Net Taxable Value: $440,000
  • Annual Tax ($10/$1,000): $4,400
  • Monthly Escrow: $367

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Less: Home Exemption Credit (if applied): -$160,000
  • Net Taxable Value: $840,000
  • Annual Tax ($10/$1,000): $8,400
  • Monthly Escrow: $700

Note: Home exemption credits require annual application and are not automatically applied. Special district assessments not included in these examples.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Kalawao County require borrowers to maintain an escrow account for property taxes, collecting monthly payments as part of your mortgage payment to ensure taxes are paid on time. Lenders typically collect 1/12th of your annual property tax bill each month, plus a cushion of up to two months' worth of payments as allowed by federal law.

Your lender will pay your property taxes directly to Kalawao County when they become due, typically around April 15th. You should receive an annual escrow analysis from your lender showing how your payments were applied and any adjustments needed for the coming year. It's important to verify that your lender has received and is using the correct tax bill amounts, especially after reassessments or when supplemental tax bills are issued.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are property taxes due in Kalawao County? A: Property taxes are typically due April 15th for the current fiscal year. Check with the Hawaii Department of Taxation for exact due dates.

Q: What tax credits are available and do they require applications? A: The primary tax credit is the Home Exemption Credit, which can reduce your taxable assessed value significantly. This credit requires an annual application and is not automatically applied to your property.

Q: How does the Home Exemption Credit work? A: The Home Exemption Credit reduces your property's taxable assessed value rather than capping assessment increases. You must apply annually, and the credit applies only to your primary residence.

Q: When does the county assess properties? A: Kalawao County conducts annual property assessments. Assessment notices are typically mailed in early spring, with appeal deadlines usually 30-60 days after notices are sent.

Q: What are the penalties for late payment? A: Late payments typically incur interest charges and penalties. Contact the Hawaii Department of Taxation for current penalty rates and payment options.

Q: Can I pay property taxes online? A: Yes, online payment options are typically available through the Hawaii Department of Taxation website. Check their official site for accepted payment methods.

Q: How do special district taxes work? A: Special districts may impose additional taxes for specific services or improvements. These appear as separate line items on your tax bill and vary by location within the county.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed within the specified deadline after receiving your assessment notice. Contact the county assessor's office for appeal forms and procedures.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
Narrative 09.01files.hawaii.gov
02
County
Real Property Tax Division | Hawaii County, HIhawaiicounty.gov
03
Neighbor Island Parcels as of June 2025files.hawaii.gov
04
Tax Doc
Tax Announcements - Hawaii Department of Taxationtax.hawaii.gov
05
State
IN THE SUPREME COURT OF THE STATE OF HAWAIIcourts.state.hi.us
06
Tax Doc
Chapter 231, HRS, Administration of Taxesfiles.hawaii.gov
07
Area Plan on Agingkauai.gov
08
Finance Office - Procurement Management - Addendum #3 ...fairfaxcounty.gov
09
Tax Doc
Review of General Excise and Use Tax Exemptions and ...files.hawaii.gov
10
Urban Honolulu, Hawaiihuduser.gov
All sources verified as of 2025 Tax Year

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