Hawaii County taxes most Hilo apartment buildings in its Apartment class at $11.70 per $1,000 of net taxable value for the July 1, 2026 to June 30, 2027 fiscal year, applied to a market value set as of January 1. That rate stayed the same this year while other classes moved, so the real drivers of Hilo apartment property taxes in 2026-27 are the assessed value, which class the parcel lands in, and whether the owner has filed for one of the county’s rental-based classifications.
This guide walks through how the system works for owners and passive investors holding multifamily property in Hilo: who does the assessing, what the current rate table looks like, the calendar from valuation date to tax bill, how appeals work, and the two rental programs that can lower the rate on qualifying units.
Who taxes property in Hilo
Hilo has no city government. It is an unincorporated community that the U.S. Census Bureau counts as a census-designated place, and the Bureau notes that Hawaii is the only state with no incorporated places it recognizes. Every municipal function for Hilo, including real property tax, is handled by the County of Hawaiʻi, which covers the entire Big Island. There is no separate city levy, city assessor or city tax bill layered on top of the county’s.
Inside county government, assessment and collection sit with the Real Property Tax Division of the Department of Finance. The division states that all real property is assessed at fair market value and that it administers taxes imposed under Chapter 19 of the Hawaiʻi County Code. Its East Hawaiʻi office is in the Aupuni Center at 101 Pauahi Street, Suite 4, in Hilo; a West Hawaiʻi office operates in Kailua-Kona.
For context on the local housing stock, the Census Bureau’s QuickFacts profile for Hilo CDP reports a 2020 population of 44,186, an owner-occupied housing rate of 66.1%, and a median gross rent of $1,427 for the 2020-2024 period. Roughly a third of occupied homes are rentals, which is why the county’s rental-specific tax classes matter here.
The tax classes that apply to multifamily property
Hawaii County assigns every parcel to a general land class, and the County Code directs that land be classified based on its highest and best use. The class determines the rate. For a Hilo owner with rental units, the classes that come up most often are:
- Apartment. The default class for most multifamily rental buildings. Rate for FY 2026-27: $11.70 per $1,000.
- Residential (tiered). Applies to single-family homes, small multi-unit parcels and condominium units without a home exemption, depending on use. Tier one, covering value under $2 million, is $11.10. Tier two ($2 million to $4 million) is $14.50, and a new tier three (over $4 million) is $17.00. Higher tiers apply only to the portion of value above each threshold.
- Long-Term Rental. A voluntary class, new for tax year 2026-27, for property leased to the same tenant for six consecutive months or more. Rate: $7.75.
- Affordable Rental Housing. A voluntary class for rentals that stay at or below the county’s designated rent levels. Rate: $5.75.
- Homeowner. For owner-occupied principal residences, including an owner who lives on site and rents another unit long term. Rate: $5.75.
- Commercial. For mixed-use or commercially valued property. Rate: $10.70.
The rates above come from the County of Hawaiʻi valuation report for the tax year July 1, 2026 to June 30, 2027, published in the statewide FY 2027 real property tax valuation report. Industrial ($10.70), Agricultural ($9.35), Conservation ($11.55) and Hotel/Resort ($11.55) round out the table.
What changed for fiscal year 2026-27
The Hawaiʻi County Council adopted the FY 2026-27 rates by Resolution 574-26 on May 21, 2026, on an 8-0 vote, according to Big Island Now coverage of the rate vote. Compared with the prior year, the changes that touch rental owners were:
- Apartment class unchanged. It stayed at $11.70, the same rate the county published for FY 2025-26. A proposal to raise it to $12.10 did not pass.
- Homeowner and Affordable Rental Housing cut. Both fell 20 cents, from $5.95 to $5.75 per $1,000.
- Long-Term Rental rate set. The class created by Ordinance 24-69 took effect for the 2026 tax year at $7.75.
- Residential tiers expanded. The tier two rate on value above $2 million rose from $13.60 to $14.50, and a third tier at $17.00 now applies to value above $4 million.
For comparison, the county’s FY 2025-26 rate schedule listed Apartment at $11.70, Residential at $11.10 under $2 million and $13.60 above it, Commercial at $10.70, and Affordable Rental Housing and Homeowner at $5.95. Commercial, Industrial, Agricultural, Conservation and Hotel/Resort rates did not change between the two years.
The scale of the Apartment class is significant. The FY 2027 valuation report shows about $8.25 billion of net taxable value in the class countywide, which at $11.70 is expected to raise about $96.5 million, roughly a sixth of the $576 million total the county expects to collect from real property tax.
How Hilo apartment property taxes are calculated
The formula is simple: net taxable value divided by 1,000, multiplied by the class rate. Net taxable value is the assessed market value of land and buildings minus any exemptions the parcel qualifies for. Most investor-owned apartment buildings carry no exemption, so assessed and net values are usually the same.
Some worked examples at FY 2026-27 rates, using round numbers for illustration:
- $1,500,000 building, Apartment class. 1,500 x $11.70 = $17,550 per year.
- $1,500,000 building, all units in Long-Term Rental. 1,500 x $7.75 = $11,625 per year, about $5,925 less.
- $1,500,000 building, all units in Affordable Rental Housing. 1,500 x $5.75 = $8,625 per year.
- $3,000,000 building, Apartment class. 3,000 x $11.70 = $35,100. The Apartment class has no value tiers, so the same rate applies to every dollar.
The last point is worth noting. The tiered surcharges introduced over the last few years apply to the Residential class only. A large apartment building in the Apartment class pays a flat $11.70 no matter its value, while a high-value Residential-class parcel pays progressively more above $2 million and $4 million. The county also applies a $200 minimum tax, with exceptions set out in Section 19-90(e) of the County Code, as noted on the county’s tax rate information page.
The annual calendar, from valuation to payment
Hawaii County runs its property tax on a fiscal year from July 1 to June 30, with values fixed months earlier. The county appeal information page and payment page lay out the key dates:
- January 1. Statutory valuation date. Assessments reflect market value as of this date, and appeal evidence must too.
- On or before March 15. Assessment notices are mailed to owners of record.
- April 9. Deadline to file an appeal of the assessment (postmarked or hand-delivered and date-stamped).
- By June 20. The County Council sets rates for the coming tax year.
- July 1. The fiscal tax year begins.
- August 20 and February 20. The two installment due dates.
- December 31. Deadline to file for the Affordable Rental Housing and Long-Term Rental classifications for the next tax year.
Late installments draw a 10% penalty the day after the due date, plus interest of 1% charged on the first day of every month. Owners with a mortgage should know the county sends the bill to the lender’s servicer in that case, so the owner may never see a paper copy. Payments can be made online through the county’s approved vendor, by mail, or in person at the Hilo or Kona office, though the offices do not take credit cards at the counter.
Appealing an assessment in Hawaii County
Owners can appeal the assessed value, not the rate or the tax amount. The process is administrative first, judicial second.
Filing the appeal
An appeal is filed on the Taxpayer’s Notice of Appeal, RP Form 19-91, with the parcel’s tax map key (TMK) number in the top right corner, by the April 9 deadline. Each appeal needs a non-refundable $50 deposit payable to the Director of Finance, and one check can cover several appeals. A separate appeal is needed for each assessment year and for each general land class on a parcel that has more than one class. If the county issues an amended notice, the owner has 30 days from that notice’s date to appeal it.
The Board of Review and Tax Appeal Court
Appeals go to the county’s Board of Review, which has five volunteer members appointed by the mayor and confirmed by the County Council. Hearings are informal and usually run from July through November. The board announces its decision at the hearing and follows up with a written decision by certified mail. An owner who disagrees has 30 days from the written decision to take the case to the state Tax Appeal Court.
The burden of proof is on the owner. For an apartment building, that usually means bringing evidence of value as of January 1: an appraisal, rent rolls and operating statements that support an income-based value, comparable sales of Big Island multifamily properties, or documentation of physical condition problems the assessor may not have seen. Claims that the tax is too high, or that the rate is unfair, are not grounds the board can act on.
Long-Term Rental classification for Hilo landlords
The Long-Term Rental class was created by Ordinance 24-69 (Bill 104), which took effect January 1, 2026. The ordinance defines a long-term rental as property occupied under a signed lease for six consecutive months or more to the same tenant or tenants. Its key rules, as summarized in the county’s Long-Term Rental information sheet:
- Every unit must be leased long term. Except for the owner’s own principal residence, all dwelling units on the property must meet the six-month rule. One short-term or month-to-month unit puts the whole parcel out of compliance.
- Leases on file. A current signed lease, updated annually, is required, and the original lease must have at least six months remaining when filed.
- Vacancy allowance. A vacancy of up to twelve consecutive months is allowed for renovation or while the unit is actively listed, with proof.
- Annual filing. Claims are accepted January 1 through December 31 for the next tax year and must be filed every year, signed by all owners or an authorized representative.
- Value limit for Residential parcels. Property in the Residential class with a net taxable value of $2 million or more is not eligible.
- Breach penalty. If the property falls out of compliance, or changes hands in a transfer subject to state conveyance tax, the classification is cancelled retroactively, for no more than the current year, and the tax difference is due with a 10% penalty.
The ordinance also sets a floor so the Long-Term Rental rate can never be lower than the Affordable Rental Housing rate. The ordinance text does not specifically address Apartment-class buildings, and it excludes property used for commercial or income-producing purposes beyond long-term residential leasing. Owners of larger Hilo buildings should ask the Real Property Tax Division how a given parcel would be treated before counting on the lower rate. Uptake has been light so far: the FY 2027 report shows only about $512 million of net value countywide in the new class.
Affordable Rental Housing classification
The county’s Affordable Rental Housing program offers the lowest rate available to a rental property, $5.75 for FY 2026-27, in exchange for keeping rents at or below county-designated levels for the entire calendar year. The requirements are strict:
- Every unit qualifies, or none do. Each unit needs its own application on RP Form 19-53(h), and all units must stay at or below the designated rate.
- Lease terms. A current lease, signed by the renter and updated annually, with at least six months remaining on the original term.
- No short-term or commercial use. Transient rentals as defined by the state and most commercial uses disqualify the property.
- Deadline. Applications are due by December 31 before the tax year, and must be renewed annually.
- Value cap. If the owner keeps the property and reapplies each year, the assessed value cannot rise more than 3% the year after classification.
Breach rules mirror the Long-Term Rental class: if any unit’s rent goes above the affordable level during the year, or the property transfers in a conveyance-taxable sale, the classification is cancelled back to its start date and the tax difference is due with a 10% penalty. Since January 1, 2025, an owner who lives on the property and rents another unit for six months or more is placed in the Homeowner class instead, and no longer files annually. The county publishes the specific rent limits with the yearly application rather than in the information sheet, so owners should check the current figures when the application is released each fall.
Practical takeaways for Hilo apartment owners
A few habits keep the tax side of a Hilo multifamily property predictable:
- Read the March notice closely. Check the land class as well as the value. A building classified Residential instead of Apartment, or the reverse, changes the rate structure, and that is appealable by April 9.
- Model the rental classes before December 31. On a $1.5 million building, the gap between $11.70 and $7.75 is close to $6,000 a year. Whether that is worth the lease rules depends on the tenant mix and how often units turn.
- Track compliance as carefully as the savings. A single short lease or over-limit rent can trigger retroactive tax plus a 10% penalty.
- Plan for the transfer reset. A sale subject to conveyance tax breaches both rental classifications, so a buyer’s underwriting should assume the Apartment rate until the buyer files on their own.
- Budget for council changes. Rates are reset every year by June 20. The Apartment rate held at $11.70 this year, but a proposed increase was on the table and could return.
Owners comparing Hawaii with other states can see how county property tax regimes and rent rules stack up in our guide to rent control and property tax by state. For broader market context across the islands, see our overview of Hawaii apartment markets, and owners weighing a sale can review what is involved in selling an apartment building in Hilo.
