South Maui homeowners pay some of the lowest effective property tax rates in the United States. Maui County's overall effective rate sits at 0.22%, placing it among the lowest of any county nationwide according to Tax Foundation analysis of ACS 2024 data. For luxury buyers in Kihei, Wailea, Makena, and Maui Meadows, the headline rate tells only part of the story. Property classification, whether owner-occupied, non-owner-occupied, or short-term rental, can swing an annual tax bill by tens of thousands of dollars on a high-value home. Wailea and Makena estates routinely transact above $5 million, making the tiered non-owner-occupied rate structure, particularly the $17.00 per $1,000 Tier 3 rate triggered above $2.5 million in assessed value, a material cost of ownership. This guide breaks down how the local tiered system works, what changed in fiscal year 2026 to 2027, and where South Maui sits relative to comparable luxury markets.

Where Maui County Stands Nationally

Maui County ranks among the lowest-taxed counties in the United States with a 0.22% effective property tax rate, well below the national average and lower than every other Hawaii county based on ACS 2024 data. That figure places Maui County alongside remote Alaskan census areas and a small number of rural Southern counties carrying similarly low effective burdens.

For context:

• New Jersey leads the nation at 1.88% effective rate (ACS 2024)
• Illinois follows at 1.88%
• Texas, often cited by buyers weighing Sun Belt alternatives, comes in at 1.40%
• Hawaii statewide ranks last (most favorable) at 0.29%
• Maui County specifically at 0.22% is measurably lower than even the statewide Hawaii figure

Among Hawaii's counties, Maui's 0.22% effective rate undercuts Kauai County (0.25%), Honolulu County (0.31%), and Hawaii County (0.35%). For buyers comparing a luxury property in Wailea against a similar asset in Scottsdale (Maricopa County at 0.44%), coastal Florida (Palm Beach County at 0.82%), or the California coast (typically 0.60% to 0.80%), the annual tax savings remain substantial.

However, an effective rate represents an aggregate figure drawn from all property types and price points. For a luxury second home in Wailea assessed above $2.5 million, the operative rate depends on the tiered classification schedule rather than the countywide average.

How Maui's Classification System Works: The Tiered Rate Schedule

Maui County applies a tiered rate system with four primary residential classifications: owner-occupied, non-owner-occupied, TVR-STRH (short-term rentals), and long-term rental. Portions of assessed value are taxed at progressively higher rates, and property classification determines the applicable schedule. The FY2026 to 2027 rates below became effective July 1, 2026, per Maui County Resolution No. 26-69, FD2, adopted May 15, 2026.

All rates are per $1,000 of net taxable assessed value.

Owner-Occupied (Primary Residence)

For a Maui Meadows primary homeowner, an assessed value of $1,500,000 with a $300,000 homeowner exemption produces a taxable value of $1,200,000, resulting in a $1,980 annual tax bill. For Wailea estates valued above $4.5 million, the Tier 3 rate of $5.00 applies to the portion exceeding that threshold. That rate fell in 2026 from the prior year's $5.75, offering a tax reduction for ultra-luxury primary residents.

Non-Owner-Occupied (Luxury Second Homes and Investment Properties)

This classification directly impacts buyers purchasing Wailea or Makena estates as second homes or investments. The Tier 3 threshold dropped from $3,000,000 to $2,500,000 in 2026, meaning properties previously falling entirely in Tier 2 now have a portion taxed at $17.00 per $1,000. A $4,500,000 non-owner-occupied property generates an annual bill exceeding $50,000 under current rates.

TVR-STRH (Permitted Short-Term Vacation Rentals)

All three short-term rental tiers increased in 2026, and the Tier 1 threshold tightened from $1,000,000 to $900,000, moving more Kihei vacation condo owners into higher brackets. County policy classifies properties based on highest and best use. A condo in a vacation-rental complex used solely as a second home without a homeowner exemption typically carries the TVR-STRH rate unless permitted as a long-term rental. Buyers reviewing South Maui condo market trends should factor these classifications into total carrying costs.

Long-Term Rental

The long-term rental category remains the most favorable non-owner-occupied classification. Property owners committing to 12-month lease agreements for local residents receive rates much closer to owner-occupant levels than short-term operators.

Hotel & Resort, Timeshare, and Luxury Portfolios

For buyers acquiring properties within resort complexes, two additional classifications apply. Hotel and resort properties carry a flat rate of $11.80 per $1,000 without tiering, while timeshare interests carry a flat rate of $14.90 per $1,000. Luxury buyers evaluating branded residences in Wailea and Makena should confirm the applicable classification with the assessment division prior to closing, as county determinations depend on highest and best use rather than intended occupancy patterns.

Key Changes for FY2026–27: What South Maui Owners Need to Know

County tax policies prioritize easing the burden on primary homeowners and long-term landlords while increasing rates for non-owner-occupied properties and vacation rentals. Key updates include:

• Owner-Occupied Luxury Rate Reduction: The Tier 3 rate dropped from $5.75 to $5.00 per $1,000 for properties assessed above $4.5 million. The Tier 1 threshold widened to $1.5 million, allowing more primary homeowners to qualify for the lowest rate.

• Lower Non-Owner-Occupied Tier 3 Threshold: The $17.00 rate now applies above $2.5 million rather than $3.0 million. Second-home properties in Wailea valued between $2.5 million and $3.0 million now face higher marginal tax expenses.

• Increased Short-Term Rental Rates: Every short-term rental tier increased alongside tighter threshold boundaries. Combined with local regulatory changes affecting residential apartment districts, operational costs for vacation properties continue an upward trajectory.

• Expanded Long-Term Rental Incentives: The Tier 1 rate dropped to $2.90 per $1,000 while the threshold expanded to $1.5 million, offering tax relief to property owners providing long-term housing.

Exemptions That Impact Tax Calculations

• Homeowner Exemption: Qualifying principal residences receive a $300,000 reduction in assessed value and transition into the owner-occupied rate schedule. Qualification requires occupying the home for at least 270 days per year, refraining from renting the property, and filing state income taxes with a local address.

• Long-Term Rental Exemption: Non-owner-occupied properties leased for 12 months or longer receive a $200,000 reduction in assessed value alongside long-term rental rates. Owner-occupants renting a secondary unit long-term receive a $100,000 assessment reduction.

Exemption applications for the upcoming fiscal cycle must be submitted by December 31, 2026. Owners can review current classifications by accessing county records online.

Calculating South Maui Property Taxes: Three Examples

Example 1: Wailea Primary Residence ($3.5 Million Assessed Value)

• Assessed Value: $3,500,000

• Homeowner Exemption: -$300,000

• Taxable Value: $3,200,000

• Tier 1 ($1,500,000 x $1.65 / 1,000): $2,475

• Tier 2 ($1,700,000 x $1.80 / 1,000): $3,060

• Total Annual Tax: $5,535

Example 2: Makena Non-Owner-Occupied Estate ($4.0 Million Assessed Value)

• Assessed Value: $4,000,000

• Homeowner Exemption: None

• Tier 1 ($1,000,000 x $6.25 / 1,000): $6,250

• Tier 2 ($1,500,000 x $9.00 / 1,000): $13,500

• Tier 3 ($1,500,000 x $17.00 / 1,000): $25,500

• Total Annual Tax: $45,250

Example 3: Kihei Vacation Condo ($1.5 Million Assessed Value)

• Assessed Value: $1,500,000

• Homeowner Exemption: None

• Tier 1 ($900,000 x $13.00 / 1,000): $11,700

• Tier 2 ($600,000 x $15.00 / 1,000): $9,000

• Total Annual Tax: $20,700

These scenarios highlight how classification impacts total holding costs.

South Maui Property Taxes vs. Comparable Luxury Markets

While Maui's non-owner-occupied tax expenses remain competitive against several mainland resort areas, local tiered structures create notable variations.

Maui's property tax structure offers distinct advantages for primary residents and long-term rental investors, while applying higher rates to non-resident second homes and vacation rental units.

Important Dates for FY2026–27

Payments can be made online at mauipropertytax.com, by mail, or in person. For payment-related questions, contact the Real Property Tax Division at (808) 270-7697. For assessment and classification questions, contact the Maui Real Property Assessment Division at (808) 270-7297.

Get a Clear Breakdown of Your South Maui Property Tax Obligations

Determining your exact tax liability depends on how your South Maui home or condo is used, its zoning, and available exemptions. Whether you are buying a second home in Wailea, acquiring a vacation rental in Kihei, or planning a relocation to Makena, modeling your holding costs before submitting an offer protects your investment.

If you have questions about property classifications, local market trends, or current South Maui inventory, reach out for personalized, hands-on guidance.

Schedule a Consultation with Jyoti Graziano

Frequently Asked Questions

• What is the effective property tax rate in Maui County? The average effective rate is 0.22% based on ACS 2024 data, placing Maui County among the lowest in the nation. However, tiered classifications result in higher effective rates for non-owner-occupied luxury properties.

• How does the homeowner exemption alter tax liabilities? The exemption lowers taxable assessed value by $300,000 and reclassifies the property under owner-occupied tax rates. Qualification requires primary occupancy for at least 270 days annually along with Hawaii state tax filings.

• How are second homes classified if used occasionally by the owner? Properties in short-term rental complexes without an active homeowner or long-term rental exemption are generally classified under TVR-STRH or non-owner-occupied rates based on highest and best use.

• What updates affected short-term rental taxes recently? Tax rates across all three short-term rental tiers increased for the 2026 to 2027 cycle, alongside a lowered Tier 1 threshold of $900,000.

• Can property owners appeal an assessed valuation? Yes, appeals may be submitted to the Board of Review following the delivery of annual assessment notices, with a filing deadline of April 9 each year.