Taxes and Tax Breaks

[Lew P]

Does the state tax out of state retirement pensions, and social security, at the full income tax rate? Is there a property tax break for taxpayers over 60 years old?

[David M]

http://www.hawaii.gov/tax/current/n13ins.pdf

Check out page 9

I think so on property tax but can't find a link right now.

David

Ninole Resident

[loffelkopffl]

yes there is a huge tax break for property owners here, you get a $40,000 exemption right off the assesed value of your home, and if you're over 60 something it increases dramatically.

[Hotzcatz]

Aloha Lew,

I don't know about the income tax, but you can get the homeowners property tax rate by going to the property tax office and signing up for it. They are in the new County office building across from Long's in downtown Hilo.

A hui hou,
Cathy

[John S Rabi]

An additional break is the "Non-speculative Dedication" that would freeze your property tax for 10 years.

John S. Rabi
ABR,CM,CRB,FHS,PB,R
http://www.JohnRabi.com
Typically Tropical Properties
808.327.3185

[Lew P]

I wonder how the Non-Speculative deduction works? Do many use it?

[John S Rabi]

I have used it three times so far. (I sold my first condo past the 10 years; sold the second one in two years and paid a penalty; and I am using it now too.) You basically have to sign a Dedication Document at the Tax Office indicating you will not sell your property and use it as your primary residence for 10 years. The document will be recorded at the Bureau of Conveyences and attached to your title. If you sell/rent before the 10 years is up they will adjust your tax to the current rate and you also have to pay a 10% penalty on the difference of the "frozen tax" and the current tax.

John S. Rabi
ABR,CM,CRB,FHS,PB,R
http://www.JohnRabi.com
Typically Tropical Properties
808.327.3185