Save on Your Property Taxes with Maui County’s Long Term Rental Exemption

Are you aware that a long-term rental Maui property will be eligible for a long-term rental tax exemption beginning January 1, 2022? A long-term rental property that is renting for a minimum 12-month lease and does not have a home exemption will be eligible for an exemption of $200,000.

This is the second fiscal year that the tax exemption will be offered. The tax exemption is applied on Jan. 1 of the next property assessment year. It will be shown on the July property tax bill.

Requirements to Qualify

A lease agreement signed by the same tenant must be maintained for at least 12 consecutive months to qualify for the property tax deferral. You must send a copy of the agreement to the Maui County Property Tax Department.

Many different situations are covered by the long term rental property tax exemption. If your property is occupied and rented out to different tenants, you are still be eligible for a $200,000 long-term rental exemption. If a portion of the property is used for commercial purposes, no exemption will be granted for that portion. Only the portion exclusively used for long-term rentals will be eligible for an exemption.

You may occupy a portion of the property and rent out a separate section. You will be eligible for a $100,000 long-term rental exemption in addition to the home exemption, and your property will still be classified as Owner-Occupied.

How to Apply

In order to qualify for the exemption, you must apply by December 31 and provide a copy of a signed long-term lease agreement. You can find more information and the Maui long term rental application at the Maui county government RPA forms page.

Where to Learn More

Learn more about this program at the Maui County Government website.

If you are interested in purchasing an investment property to rent out, and taking advantage of the long term rental property tax exemption, contact us today.