Kauai County Tax Rates Just Got Released: Here Is What You Need To Know

Understanding Kaua‘i Property Taxes: What You Need to Know for 2025–2026

The Kaua‘i County Council has just announced the tax rates for the 2025–2026 fiscal year, and there are no changes compared to last year. This makes it a great time to review how your property is classified and ensure you’re being taxed accurately.

If you’re unsure which tax rate applies to your property, give me a call—I’ll look it up for you.

Why Tax Classification Matters

Kaua‘i determines your real property tax rate based on how your property is used—not its zoning. This use determines your Tax Classification, which directly impacts your annual tax bill.

Mistakes in classification are more common than you might think. Many property owners have unknowingly overpaid for years due to errors—or have missed out on valuable savings by failing to file for the Owner-Occupant Exemption, a benefit intended for primary residents.

To avoid this, it’s crucial to ensure that your current use is properly filed with the County Real Property Assessment Division by September 30.

For example: If you’ve recently purchased a home and it’s your primary residence, you may qualify for the lower Owner-Occupant “Homestead” rate—but this benefit isn’t applied automatically during escrow. A separate filing is required.

Key Dates to Remember

• September 30 – Deadline to file exemption claims and confirm ownership
• October 1 – Assessment date for the upcoming tax year
• December 1 – Assessment notices mailed
• December 31 – Deadline to file assessment appeals
• January 20 – Second half-year tax bills mailed
• February 20 – Second half-year payments due
• June 20 – New tax rates set by County Council
• July 1 – Start of new tax year; dedication petitions due
• July 20 – First half-year tax bills mailed
• August 20 – First half-year payments due

How Property Taxes Are Calculated

Your property taxes are calculated using the formula:

Assessed Value ÷ 1,000 × Tax Rate = Annual Tax

Example:
For a residential property assessed at $1,000,000, with a residential tax rate of $6.15 per $1,000:

• $1,000,000 ÷ 1,000 = 1,000
• 1,000 × $6.15 = $6,150 annual property tax

If the property qualifies for an exemption—such as the Owner-Occupant exemption—the taxable value would be reduced, lowering your annual bill.

Where Your Taxes Go

Each property tax dollar funds essential public services like police and fire departments, roads, parks, waste collection, and more.

Real property taxes provide over 80% of the County’s general fund revenue, making them a vital part of maintaining Kaua‘i’s infrastructure and overall quality of life.

How I Support You

My commitment to clients doesn’t end at the close of escrow. I pride myself on being a long-term real estate advisor—offering guidance not only on market value and home improvements but also on important matters like tax classification, exemptions, and regulatory updates.

If you’re unsure about your current tax classification or would like help reviewing your property’s assessed value or any other real estate matters, I’m here to assist.

Give me a call—I’m happy to help you navigate Kaua‘i’s real estate landscape with confidence.