Property Tax Guide for Agricultural Properties

Property tax is a significant component of farm operating costs in Hawai‘i. According to the Hawai‘i Department of Agriculture’s Farm Production Expenses Statistics (2024) report, based on data from the Census of Agriculture, property taxes totaled $23.7 million in 2022. While hired farm labor remains the largest production expense in the state, property taxes have grown at a rapid pace, growing 5.34 percent on average from 2007 to 2022. This represents the second-fastest growth rate among all farm expenses, following contract labor. With farmland and home values rising steadily, and property taxes tied directly to assessed property values, farmers are facing increasing financial pressure from higher property tax bills.

Qualifications for agricultural tax exemptions and tax rates vary by state and county. Therefore, it is essential for farmers to understand local programs and requirements to ensure they access all eligible tax benefits while actively engaged in agriculture.

Reference: Hawai‘i Department of Agriculture (2024) Farm Production Expenses Statistics State of Hawaii, 2007–2022. Available at https://hdoa.hawaii.gov/add/files/2024/12/Farm-Production-Expenses-2007-2022_SOH_11.26.24.pdf