On October 20, 2025, the City and County of Honolulu passed Ordinance 25-44, which redefines the Residential A and Transient Vacation Unit real property tax tiers. The ordinance introduces a third tier for both classifications and increases the threshold values for each tier.
Residential A Tiers
The new Residential A tiers apply to the net taxable value of the property as follows:
- Tier 1: Up to $1.3 million
- Tier 2: More than $1.3 million and up to $3.5 million
- Tier 3: More than $3.5 million
Residential A refers to a parcel, or portion thereof, that meets the following criteria:
- Improved with no more than two single-family dwelling units
- Has an assessed value of $1.3 million or more
- Does not have a home exemption
- Is zoned residential or dedicated for residential use
Residential A also includes:
- Vacant land zoned residential and assessed at $1.3 million or more
- Condominiums classified as residential with an assessed value of $1.3 million or more and without a home exemption
Transient Vacation Unit Tiers
The new tiers for Transient Vacation Units (TVU) apply to the net taxable value of the property as follows:
- Tier 1: Up to $900,000
- Tier 2: More than $900,000 and up to $2 million
- Tier 3: More than $2 million
A TVU is defined as a dwelling or lodging unit that is advertised, solicited, offered, or provided for compensation to transient occupants for fewer than 90 consecutive days. This definition excludes bed and breakfast homes, timeshares, and hotels.
This ordinance is scheduled to take effect on July 1, 2027.
A special mahalo. This newly passed ordinance, formerly Bill 34 (2024), marks a significant advocacy win for HBR. The tier thresholds had remained unchanged since 2014, and thanks to the persistent efforts of our City Affairs Committee, HBR led the charge to make this much-needed, long-awaited change happen.