Guest Post: Do You Know About this Tax Credit?

By Kent Kasaoka, CPA

Real property tax is the largest source of funding for the operations of the City & County of Honolulu. Landowners are responsible for paying thousands of dollars per year based on the assessed value of real property. Eligible residential homeowners are allowed an exemption, which reduces the taxable value of the property and the related amount of real property taxes they are billed each year.

Most Oahu taxpayers are aware of the real property tax homeowner exemption offered by the City & County of Honolulu. However, not as many know about the real property tax credit.

Eligibility Requirements:

1. Applicants must have a home exemption.

2. Titleholders may not own any other real property anywhere.

3. Combined gross income of all titleholders may not exceed $80,000. The application contains an income worksheet to determine how gross income is calculated.

4. Submit documents as required by the application.

5. Sign and date the affidavit and certification on the application.

The application deadline is September 30, 2026 for the fiscal year July 1, 2027 – June 30, 2028.

Applicants must apply annually for this credit. See the brochure for more information: Microsoft Word - 2027-2028 Real Property Tax Credit Info Brochure rev.

Action items:

1. Check to see whether you have a homeowner exemption: qPublic - City and County of Honolulu, HI - Search. Enter your address in the “Search by Location Address” section, then click the “Search” button. In the “Assessment Information” section, look at the “Total Property Exemption” column. If you have a homeowner exemption, the amount should be $120,000 (or $160,000 if you are age 65 or older).
   

2. Look at your 2025 U.S. Individual Income Tax Return (Form 1040). Go to line 9 where it states, “This is your total income.” However, you need to include retirement plan contributions deducted from wages, tax-exempt interest and dividends, non-taxable portion of Social Security benefits, COLA, etc. to determine whether your gross income exceeds the $80,000 threshold.

Kent and his mom in front of Mt. Asahi. Hokkaido, Japan

Kent Kasaoka is a certified public accountant (CPA) licensed by the State of Hawaii since 2002. He founded Kasaoka CPA LLC in 2021, a virtual firm based in Honolulu, and advises retirees on income tax optimization strategies.

When he is not helping clients, Kent travels, trains for the Honolulu marathon, and delivers meals to the aged and homebound via Hawaii Meals on Wheels. He is an Eagle Scout.

Investment advisory services offered through Andrews Advisory Associates LLC, a registered investment advisor. This blog is not meant to give investment advice. Before investing in any advisory product please carefully read any disclosure documents, including without limitation, the firm’s Form ADVs. The information herein is provided for informational purposes only, and does not constitute an offer, solicitation or recommendation to sell or an offer to buy securities, investment products or investment advisory services. Nothing contained herein constitutes financial, legal, tax, or other advice. These opinions may not fit your financial status, risk and return profile or preferences. Investment recommendations may change, and readers are urged to check with their investment adviser before making any investment decisions.