Property Owners Should Prepare for the 2023 Hawaii Assessment

The state of Hawaii bases its annual real property tax assessments on the cost approach, with some consideration given to comparable sales. The 2021 assessments were decreased on average between 15 to 20% to provide taxpayers some relief for the mandatory government shutdown because of COVID-19. The 2022 assessments in some areas saw significant price appreciation over the prior year as the assessments were brought back to values that were at or near pre-pandemic levels. Typical assessment increases in 2022 ranged from 15% in Ewa Beach to 17% in Waipahu to 19% in Kapolei. In Mililani, it’s 25% or more; in Kāhala 30%; and in parts of Kailua, including Lanikai, it’s as high as 40%.

The post-pandemic market activity for real property in Hawaii has been very strong. Low interest rates and inflationary pressures from the dramatic increases in the money supply created strong demand for real property in Hawaii. That translates to higher assessed values and property tax bills for the 2023 fiscal year. The 2023 assessment values will be posted by county according to the following scheduled dates: