HAWAII Taxable Personal Property (2024)

FAQs

Is personal property taxable in Hawaii? ›

The Hawaii Revised Statutes are silent regarding personal property tax. The counties administer the property tax. However, mobile homes can be taxed under the definition of real property. There is no ad valorem tax on motor vehicles in Hawaii; however, there is an annual tax based on the net weight of the vehicle.

File a Form N-288B (with Form N-103 included if applicable) in a timely manner prior to closing to avoid HARPTA withholding altogether if you qualify. Or, maybe you qualify for an N-289 exemption? Alternatively, you may need to file a Form N-288C to get your money back… if you don't qualify for an exemption.

The assessed value of a property is determined by the county tax assessor, while the tax rate is set by the county government. The assessed value is multiplied by the tax rate to determine the amount of property tax due. There are various factors that can affect the amount of Hawaii property tax one has to pay.

Personal Property - Any property other than real estate. The distinguishing factor between personal property and real property is that personal property is movable and not fixed permanently to one location, such as land or buildings.

The state of Hawaii has the lowest property tax rate in the nation at 0.27%. Despite this, the median annual tax payment in the state is $1,971, which is much higher. This is because Hawaii has the highest median home value in the U.S. at $772,500. Not in Hawaii?

(d) All others. HRS section 238-2(3) provides that in all other cases, the tax shall be four per cent of the landed value of such tangible personal property. For taxes on sales of tangible personal property by an out-of-state seller, including drop shipments and definitions, see §18-237-13-02.01.

The Seller may be exempt from the five percent withholding if he can provide the Buyer with a Hawaii Resident Certification. Buyer cannot evade liability by relying on a form N-289 which he knows to be false. Other provisions of HARPTA relief are available under some circ*mstances.

In the State of Hawaii, the Hawaii Real Property Tax Act (referred to as HARPTA) is a mechanism that requires the withholding of 7.25% of the amount realized, generally the sales price, when a non-Hawaii resident sells real estate.

Property Tax Exemptions in Hawaii

The basic home exemption for homeowners under the age of 60 is $40,000, for homeowners 60 to 69 years of age, $80,000 and for homeowners 70 years of age or over, $100,000 with age calculated as of January 1, the date of the assessment.

How do I appeal a property tax assessment in Hawaii? ›

If a taxpayer does not agree with the assessed value of the property, the classification of the property, or the amount of the exemption allowed, an appeal may be filed by the January 15 deadline to the Board of Review (BOR) of the City by filing online or submitting a completed appeal form BFS-RPA-M-8-12.

Any unpaid state tax, including penalties and interest, constitutes a lien in favor of the state upon all of the delinquent taxpayer's property and rights to property, whether real or personal. ( Haw Rev Stat Sec. 231-33(b) ) A lien may be foreclosed in a court proceeding or by distraint under Haw Rev Stat Sec. 231-25.

Personal property can be characterized as either tangible or intangible. Examples of tangible personal property include vehicles, furniture, boats, and collectibles. Stocks, bonds, and bank accounts fall under intangible personal property.

Personal property, on the other hand, is movable. It is defined as everything that isn't real property, such as your clothes, furniture, cars, boats, and any other movable items that aren't attached to real estate.

Personal use property is used for personal enjoyment as opposed to business or investment purposes. These may include personally-owned cars, homes, appliances, apparel, food items, and so on.

In Hawaii, most tangible products are subject to their general excise tax. There are tax-exempt items such as for medical devices and prescription medicine. Services in Hawaii are also generally subject to general excise tax.

Honolulu City and County Home Exemption

The home exemption is a tax relief program that reduces taxable assessed value. Residents with a long-term lease may also be eligible. For those eligible who are under the age of 65, the exemption is $120,000. For those 65 or older, the exemption is $160,000.

Beginning tax year 2024-2025, the home exemption will be $120,000 for homeowners under the age of 65 as well as for homeowners who do not have their birthdate on file. This means that $120,000 is deducted from the assessed value of the property and the homeowner is taxed on the balance.

Hawaii is moderately tax-friendly toward retirees. Social Security income is not taxed. Withdrawals from retirement accounts are fully taxed. Wages are taxed at normal rates, and your marginal state tax rate is 7.20%.