Good news for Oahu homeowners: The Honolulu City Council recently passed two bills that will provide modest but meaningful property tax relief, especially for senior homeowners on fixed incomes.
What’s Changing for Oahu Homeowners?
Two measures, Bill 49 and Bill 50, were approved and will go into effect starting with the tax year that begins July 1, 2027:
- Bill 49: Increases the kupuna (65 and older) exemption from $160,000 to $180,000. Example: A senior homeowner with a $1,000,000 assessed home would pay tax on $820,000 instead of $840,000. Read Bill 49 here.
- Bill 50: Increases the base homeowner exemption from $120,000 to $140,000. Example: If your home is assessed at $1,000,000, you’ll only pay property tax on $860,000 instead of $880,000 today. Read Bill 50 here.
Why Bill 49 and Bill 50 Matter
These changes will lower the taxable value of owner-occupied homes, reducing annual property tax bills. While the savings are modest—about $70 per year for most households—they can still make a difference for families and especially kupuna living on fixed incomes.
When Will Bill 49 and Bill 50 Take Effect?
The updated exemptions will not apply until July 1, 2027. Homeowners will continue with the current exemption levels until then.
What Should Oahu Homeowners Know About Bill 49 and Bill 50?
You must have a valid Homeowner’s Exemption filed with the City & County of Honolulu to qualify. Seniors age 65 and older may apply for the Kupuna Exemption for additional savings. If you’re not sure whether you’ve filed, it’s a good idea to double-check with the City’s Real Property Assessment Division before the September 30 deadline each year.
The Bottom Line
Although the savings may not be huge, these changes are designed to help local homeowners and kupuna keep more money in their pockets while balancing the city’s budget needs. As Honolulu City Council Chair Tommy Waters said, this relief can be “meaningful for those who need it most.”
Stay Informed with the Bureau of Conveyances’ New “Property Watch” Program
The State of Hawaii Bureau of Conveyances has introduced an online service called Property Watch, designed to help homeowners monitor recorded documents. By registering, you’ll receive email notifications anytime a specified name appears in a recorded document. Note: While this tool can help detect potential fraudulent activity, it does not prevent fraudulent recordings from happening. Notifications are considered reliable, but not guaranteed.
