Maui County introduces long term rental exemption for property tax savings

In a recent meeting of the Maui County Budget, Finance, and Economic Development Committee, discussions highlighted significant updates regarding property tax exemptions aimed at supporting long-term renters and older taxpayers. The meeting, held on April 15, 2025, focused on the introduction of a new long-term rental exemption program, which is designed to provide financial relief for homeowners who rent their properties.

The long-term rental exemption allows homeowners to deduct $200,000 from the assessed value of their property, provided they rent to a single tenant for at least one year. This initiative is particularly beneficial for older taxpayers, who often own their homes for extended periods and may face financial challenges. The program requires annual applications, with a designated application period from August 1 to December 31 each year. To streamline this process, the county has implemented an online reminder system to help homeowners remember to reapply.

Additionally, homeowners can stack this long-term rental exemption with existing home exemptions, allowing for greater financial flexibility. For instance, a homeowner with two properties could apply the long-term rental exemption to one property while maintaining a home exemption on another.

The Real Property Tax Office emphasized its commitment to accessibility, noting that it is open Monday through Friday from 8 AM to 4 PM. Residents can reach the office via phone or email, and further information is available on their website.

This meeting underscored the county's efforts to address housing challenges and support its residents, particularly those in the older demographic who may benefit most from these tax relief measures. As Maui County continues to navigate economic development, these initiatives reflect a proactive approach to fostering a supportive community environment.