Quick answer: While Hawaiʻi is known for low property tax rates for full-time residents who qualify for homeowner exemptions, second homes and investment properties on the Kona–Kohala Coast are often taxed at higher rates—commonly around $11–$13 per $1,000 of assessed value. Luxury HOA fees can also be significant, sometimes exceeding $3,000–$4,000 per month, reflecting premium services and amenities that can be especially valuable for absentee owners.
Key takeaways: budgeting for luxury ownership on the Big Island
- High HOA fees are common: Expect substantial monthly HOA dues in luxury Kona–Kohala Coast resorts, reflecting premium services and ongoing maintenance.
- Property taxes vary widely: Non-owner-occupied and investment property tax rates are typically higher than resident rates, so budgeting carefully is important.
- Value proposition: Higher HOA fees often include services such as landscaping, security, and amenity upkeep, which can be a major benefit for absentee owners.
- Budget comprehensively: Consider HOA fees and property taxes alongside the purchase price to understand total carrying costs.
- Use local expertise: Work with knowledgeable local professionals to understand classification, tiers, and the full financial picture.
How HOA fees and property taxes affect luxury ownership on the Kona–Kohala Coast
Over nearly two decades selling luxury homes on the Kona–Kohala Coast, I’ve worked with hundreds of buyers considering a second home or vacation rental. One of the most common questions I hear is: “How will those HOA fees and taxes impact my luxury ownership here on the Big Island?”
The answer isn’t magic—it’s a system. What I call the Polimino Financial Clarity System reflects years of helping clients understand the true cost of ownership. Below are two of the most common questions I get about HOA fees and property taxes, along with straightforward answers that clarify what matters most.
Are luxury HOA fees on the Kona–Kohala Coast always high, and are they worth it?
Quick answer: Yes—luxury HOA fees on the Kona–Kohala Coast are often high (commonly $1,500 to $4,000+ per month), and they can be worth it when they provide essential services and amenities that protect a premium property, especially for absentee owners.
When buyers review HOA statements for resort communities such as Kūkiʻo, Hualālai, or Mauna Kea, the monthly totals can be surprising. These are not typical mainland HOA numbers. In top-tier communities, fees can reach the thousands each month, reflecting the level of service, security, grounds maintenance, and amenity support expected in a luxury resort environment.
That said, these costs often translate into convenience and peace of mind. For owners who are on-island only part of the year, a well-run HOA can handle the ongoing details—landscaping, exterior upkeep, security coordination, pool and common-area maintenance, and sometimes concierge-style support—so the property stays pristine and ready for owner use or rental guests.
Real example (budget): A three-bedroom penthouse unit at a premier resort community can have HOA fees in the $3,000–$4,000+ range per month, depending on the property and association. Fees commonly support landscaping, security, amenity operations, and shared-area maintenance for a turnkey ownership experience.
How do property taxes differ for a second home or investment property on the Big Island?
Quick answer: Hawaiʻi property taxes are often relatively low for qualifying primary residences, but second homes and investment properties are commonly taxed at higher non-owner-occupied or investment rates—often around $11–$13 per $1,000 of assessed value on the Kona–Kohala Coast.
Hawaiʻi frequently ranks as “low tax” compared with many mainland markets, but the key detail is that the lowest rates typically apply to owners who qualify for the homeowner exemption. Many second-home and investment buyers do not qualify, so the property may be taxed at a higher classification and, in some cases, at higher tiers based on assessed value.
This distinction can materially change annual carrying costs, particularly for luxury properties. It’s a meaningful line item to model early, alongside HOA fees, insurance, utilities, repairs, and any rental-management expenses.
If you want a deeper walkthrough, you can reference our video on property tax basics here: Property Tax Overview (Video).
Real example (illustration): A Waikoloa Beach Resort condominium assessed at $2.5 million and taxed at $13 per $1,000 would be approximately $32,500 per year in property taxes, depending on classification and any applicable exemptions.
The bottom line: budgeting for your Kona–Kohala Coast dream
High (but often service-rich) HOA fees and higher non-owner-occupied property tax rates are two of the biggest drivers of carrying costs for luxury ownership on the Kona–Kohala Coast. A clear understanding of both helps you evaluate the real cost of ownership, avoid surprises, and choose a property that fits your lifestyle and long-term plan.
I would not be surprised to see more buyers prioritize communities with robust HOA services as they recognize the convenience and long-term value they can provide. We would be honored to be of service.
Frequently asked questions
Q: Are Hawaiʻi HOA fees always high, or are there exceptions for luxury properties?
A: For luxury resort properties on the Kona–Kohala Coast, high HOA fees are common because they reflect the level of service, amenities, and maintenance expected in world-class communities. Fees vary by property and association, but they are typically substantial.
Q: How do property taxes differ for residents vs. non-residents on the Big Island?
A: Primary residences that qualify for homeowner exemptions are often taxed at lower rates. Second homes and investment properties are commonly taxed at higher rates—often around $11–$13 per $1,000 of assessed value—depending on classification and value tiers.
Q: Can I reduce my property taxes if I eventually move to Hawaiʻi full-time?
A: Potentially. If you establish the home as your primary residence and meet county requirements, you may be able to apply for homeowner exemptions that can lower the tax rate. Requirements and timelines vary by county, so confirm with the county and a local professional.
Q: What services do high HOA fees typically cover in luxury Kona–Kohala Coast resorts?
A: Coverage varies, but luxury HOAs often include services such as security, landscaping and common-area maintenance, private road upkeep, amenity operations (pools, fitness centers, tennis), and other shared-property services that help keep the community well maintained for owners and guests.