Hawaii County Considers Higher Tax Rate for Homes Worth $4M+

The proposed measure aims to address housing affordability and homelessness in the region.

Published on Feb. 15, 2026

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The Hawaii County Council's Finance Committee has voted 7-1 to recommend a new, higher rate of residential property tax for homes with a net taxable value of $4 million or more. The legislation, introduced by Hilo Councilwoman Jenn Kagiwada and Waimea Councilman James Hustace, would create a third residential property tax tier, with the additional revenue earmarked for county initiatives addressing housing and homelessness.

Why it matters

Hawaii County is grappling with a housing affordability crisis, with high home prices and a homelessness rate more than twice the national average. This proposed tax measure aims to generate additional revenue from high-end, non-owner-occupied properties to fund solutions to these pressing issues.

The details

The current residential property tax rates in Hawaii County are $11.10 per $1,000 of value for properties valued at less than $2 million, and $13.60 per $1,000 of value for properties valued at more than $2 million. The new legislation would add a third tier for properties valued at $4 million or more, with the specific assessment rate to be determined during the county's upcoming budget process.

  • The Hawaii County Council's Finance Committee voted on the measure on February 4, 2026.
  • The full county council will now consider the recommendation.
  • The assessment rate for the new tax tier will be determined this spring during the county's budget process.

The players

Jenn Kagiwada

Hilo Councilwoman who introduced the legislation.

James Hustace

Waimea Councilman who introduced the legislation.

Holeka Inaba

Hawaii County Council Chairman who voted against the recommendation.

Lisa Miura

Real Property Tax Administrator who stated the current system can accommodate a third tax tier.

Keita Jo

Real Property Tax Assistant Administrator who provided data on revenue from properties valued over $4 million.

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What they’re saying

“What's been left in this residential tax class is vacant properties, vacation rentals, investments, second, third (and) fourth homes. So, this ability to have a third tier of … properties that are valued over $4 million will give us some flexibility when we're looking at some hard choices that we have, you know, going forward.”

— Jenn Kagiwada, Hilo Councilwoman (hawaiitribune-herald.com)

“It has a kind of social responsibility to it and a rational approach, at that high end of the market.”

— James Hustace, Waimea Councilman (hawaiitribune-herald.com)

“If the county has adequate money in its coffers, it can afford to do all those things that make a community a place where people want to buy a house or land worth over $4 million, even if they're not going to live here. It means the county can provide roads, emergency services, sewage treatment, drinking water and so forth.”

— Cory Harden, Testifier (hawaiitribune-herald.com)

What’s next

The full Hawaii County Council will consider the Finance Committee's recommendation in the coming weeks.

The takeaway

This proposed tax measure aims to generate additional revenue from high-end, non-owner-occupied properties to fund solutions to Hawaii County's housing affordability and homelessness crisis, demonstrating a willingness to use the tax system to shape desired economic and social outcomes.