2025 Kauai Property Taxes Explained: New Rates, Tiers and What You’ll Pay

2025 Kauai Real Property Taxes: your tax rate is not a one-and-done. In fact, it’s gotten a little more involved.

Understanding your property tax bill starts with knowing what category you’re in and, in some cases, what tier you fall into. 

Our fiscal year starts July 1 through June 30th and your property is taxed based on how you use it as well as the assessed value. You are taxed a dollar amount for every $1,000 of your assessed value.

 Looking at your bill, look to see your “Property Class.” We’ll start with Owner-Occupied which explains itself, this is your full-time residence and you are taxed $2.59 for every $1,000 of your assessed value.

That rate just went down, it was at $3.05 so, if you live here, your property taxes just got a whole lot better. 

Non-Owner Occupied are for residential properties that are being used as long-term rentals or second homes that are not vacation rented out. Now you need to know which tier your property market value is assessed at; TIER 1 is up to a 1.3 Million $5.45, Tier 2 $1.3 to 2M $6.05, TIER 3 $2M and up $9.40.

If you vacation rent out your property you too will need to know which Tier you fall into; up to $1M is Tier 1 at $11.30 for every $1,000 of assessed value. Tier 2 is $1M to $2.5M at $11.75 and Tier 3 is anything assessed at $2.5M and over is $12.20. 

Owner Occupied Mixed Use is when an owner uses the property as their primary residence but also does other commercial activities and, you need to get a Home Exemption to qualify for this. That rate is $5.05 for every $1,000 dollars that your property is assessed at.  

I have a flyer with these rates that was provided by a title company and you are welcome to contact me for that flyer which has some other great information on it. 

Mahalo and have a wonderful day! 

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If you have any questions about buying or selling on Kauai, feel free to reach out—I’d love to help.

Aloha! 

Lynda Gill RS Lic 63088
Hawaii Life
808.346.0056