Tax Foreclosure in Hawaii: What Homeowners Need to Know
A guide from AuctionBlock.org — a mission-driven company dedicated to foreclosure prevention education
Hawaii uses a tax lien system. The counties sell liens on properties with delinquent real property taxes, and if the debt is not paid, the county can foreclose.
How It Works
Property taxes in Hawaii are administered by the four counties (Honolulu, Maui, Hawaii, and Kauai). Under Hawaii Revised Statutes § 246-56 et seq., when property taxes become delinquent, the county places a lien on the property. Interest and penalties accrue on the unpaid balance.
If taxes remain unpaid, the county can sell the tax lien or initiate foreclosure proceedings. The county must provide notice to the property owner before any sale.
Redemption Period
Under HRS § 246-60, the property owner has a right of redemption to pay all delinquent taxes, penalties, interest, and costs. The redemption period is generally one year from the date the tax lien is sold. After the redemption period expires, the lien holder can pursue a tax deed.
Key Programs and Exemptions
Home Exemption: Each county in Hawaii offers a home exemption that reduces the assessed value of owner-occupied properties. For example, the City and County of Honolulu provides a significant home exemption for primary residences. The exemption amount varies by county — contact your county real property tax division to apply.
Low-Income Tax Credit: Some counties offer property tax credits or reduced rates for homeowners with income below certain thresholds. Contact your county tax office for details.
County Payment Plans: Hawaii counties generally offer payment plan arrangements for delinquent property taxes. Contact your county real property tax office to discuss options before foreclosure proceedings begin.
Where to Get Help
- Legal Aid Society of Hawaii: Provides free civil legal services. Call (808) 536-4302 or 1-800-499-4302 (neighbor islands), or visit legalaidhawaii.org.
- HUD-Approved Housing Counselors: Call 1-800-569-4287 or visit hud.gov/counseling.
Take Action
Contact your county real property tax division immediately if you are behind on taxes. Ask about payment plans and the home exemption.
Visit auctionblock.org/get-help for free resources and referrals.
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Laws and programs change. Verify current rules with your county tax office or a licensed attorney. AuctionBlock.org is a mission-driven company.