Maui’s New Property Tax Rates: What Buyers, Sellers, and Investors Need to Know in 2026

If you’re buying, selling, or investing in Maui real estate, your annual ownership costs changed on July 1, 2026.

Maui County’s new property tax rates for Fiscal Year 2026–2027 are now in effect, and depending on how your property is classified, your annual tax bill could be lower, higher, or largely unchanged.

For owner-occupants, the County expanded some tax benefits.

For second-home owners and many vacation-rental properties, taxes increased.

Combined with Bill 9 and Maui’s ongoing vacation-rental regulations, these changes are another sign that Maui County is encouraging long-term housing while making certain investment properties more expensive to own.

Here’s what changed and what it means if you’re buying or selling Maui real estate.

How Does Maui Calculate Property Taxes?

Unlike many mainland markets, Maui property taxes are based on both the property’s classification and its assessed value.

Different property types pay different tax rates.

Examples include:

• Owner-Occupied Homes
• Long-Term Rental
• Non-Owner-Occupied Residential
• TVR-STRH (Transient Vacation Rental / Short-Term Rental Home)
• Hotel and Resort
• Commercialized Residential
• Commercial
• Agricultural
• Conservation

Each classification has its own tax rate per $1,000 of assessed value and its own value tiers.

Every year, the Maui County Council reviews those rates before the fiscal year begins on July 1.

Did Maui Property Taxes Increase in 2026?

For many owners, yes.

But not every property saw the same change.

The County continued its recent pattern of lowering the tax burden for owner-occupants while increasing it for many investment-oriented properties.

Owner-Occupied Homes

The owner-occupied class received the most favorable treatment.

The lowest tax rate remained at $1.65 per $1,000 of assessed value.

More importantly, the lowest tax tier expanded from $1.3 million to $1.5 million, allowing more homeowners to qualify for that rate.

The highest owner-occupied rate also decreased from $5.75 to $5.00 per $1,000 for properties above $4.5 million in assessed value.

For many Maui residents, that’s effectively a tax reduction.

Non-Owner-Occupied Residential

Second homes and investment properties became more expensive to own.

The first tax tier increased from $5.87 to $6.25 per $1,000.

The middle tier increased from $8.60 to $9.00.

The highest-value tier now begins at $2.5 million instead of $3 million, meaning more properties will fall into the highest bracket.

Short-Term Vacation Rentals

Vacation-rental properties experienced the largest increases.

Rates now range from:

• $13.00 per $1,000
• $15.00 per $1,000
• $17.00 per $1,000

The first value threshold also decreased from $1 million to $900,000, meaning more vacation-rental condos now enter higher tax brackets.

Long-Term Rentals

Long-term rental properties changed very little.

The County slightly improved this category by widening qualification thresholds while keeping rates comparatively low.

That continues Maui County’s effort to encourage housing for permanent residents.

How Do These Tax Changes Relate to Bill 9?

The timing isn’t accidental.

Bill 9 phases out transient vacation rental use in affected apartment-zoned properties beginning January 1, 2029, in West Maui and January 1, 2031, elsewhere in Maui County.

Meanwhile, Bill 88 created the H-3 and H-4 Hotel District classifications, creating a potential rezoning pathway for some affected condominium complexes.

Together, these policies point in a similar direction.

Maui County is making owner-occupied housing and long-term rentals relatively more attractive while increasing both the regulatory and financial costs of certain vacation-rental properties.

That doesn’t mean every vacation rental is affected.

Hotel-zoned properties, approved visitor accommodations, and properties outside Bill 9’s scope continue operating under different rules.

But for owners of affected Minatoya List properties, higher property taxes now become another factor alongside future zoning and potential H-3/H-4 rezoning.

What Does This Mean for Buyers?

The answer depends on why you’re buying.

Buying a Primary Residence

This year’s changes are generally positive.

If you’re purchasing a home to live in full-time, you’ll want to file for Maui’s homeowner exemption as soon as you’re eligible.

The exemption reduces taxable assessed value while also placing the property into the lower owner-occupied tax classification.

Buying a Second Home

If you’re purchasing a second home that won’t qualify as owner-occupied, expect somewhat higher annual carrying costs than last year.

Those costs should be part of your overall affordability calculations.

Buying a Vacation Rental

If you’re purchasing a vacation-rental condo, property taxes are now only one piece of the analysis.

You also need to understand:

• current zoning
• Bill 9 status
• Minatoya List status
• H-3 or H-4 eligibility
• HOA fees
• insurance costs
• financing
• projected rental income

Those factors together provide a much clearer picture of long-term ownership costs.

What Does This Mean for Sellers?

Today’s buyers are more informed than ever.

Many are asking detailed questions about:

• property tax classification
• homeowner exemptions
• vacation-rental status
• Bill 9
• H-3 and H-4 zoning
• HOA fees
• insurance
• special assessments

Being able to answer those questions confidently often helps transactions move more smoothly.

Don’t Miss the Exemption Deadlines

Two County programs deserve particular attention.

Homeowner Exemption

Eligible owner-occupants can reduce taxable assessed value while qualifying for the owner-occupied tax class.

Long-Term Rental Exemption

Owners who lease property to the same tenant for at least twelve consecutive months may qualify for the long-term rental classification and associated tax benefits.

Both programs require filing with Maui County.

If you recently purchased property—or plan to purchase before year-end—it’s worth confirming which exemptions apply and when your filing deadline occurs.

The Bottom Line

Maui’s new property tax rates are more than an annual adjustment.

They reinforce the broader direction of County housing policy.

Owner-occupied homes continue receiving favorable treatment.

Long-term rentals remain encouraged.

Second homes and many vacation-rental properties face higher carrying costs.

And Bill 9 and the H-3/H-4 rezoning process continue reshaping how buyers evaluate many Maui condominiums.

If you’re wondering what these tax changes mean for a specific property, I’d be happy to walk through the numbers with you, explain how the property is currently classified, and help you understand how taxes, zoning, and today’s market conditions fit together before you make a decision.

I’m Benjamin Finnerty, REALTOR® on Maui and Director of Sales for The 808 Team. I work with buyers and sellers throughout Maui, with a particular focus on South Maui real estate, including Kīhei, Wailea, and Mākena.

Benjamin Finnerty REALTOR® RS-83812
Keller Williams Realty Maui RB-21851

This article is for general informational purposes only and is not legal, tax, or financial advice. Property tax classifications, exemptions, and County regulations can change. Buyers and property owners should verify current information with Maui County before making financial or real estate decisions.