Question: I am a senior citizen homeowner in my 70s living in my home in Honolulu. I am receiving the senior home exemption for my real property taxes. I heard the amount of the exemption has increased. Do I have to file any paperwork or do anything to get this increased amount?

Answer: No, since you already have a home exemption on file with the city, $160,000 automatically will be deducted from the assessed value of your home before your property taxes are calculated for tax year 2024-2025 (not the current tax year); owner-­occupants who lack this exemption must apply by Oct. 2.

However, we’ll also mention a separate property tax break, which does require an annual application — you may be eligible if your income is $80,000 or less and you meet other requirements.

Yours is one of many questions Kokua Line has received about Oahu’s residential property taxes. We’ll review big changes recently approved, including who qualifies, when the change takes effect and how to apply if that’s necessary, according to Honolulu’s Department of Budget and Fiscal Services.

>> $350 discount: A one-time property tax discount of $350 for the 2023-2024 tax year is for Oahu owner-occupants with a home exemption on file, as noted on their 2023 Real Property Notice of Assessment. Since Oahu’s residential property tax rate is $3.50 per $1,000 of a home’s assessed valuation, this discount makes it as if each eligible home’s assessment dropped $100,000.

No application was needed for this break, which is reflected on property tax bills distributed July 20 and which are due Aug. 21, because the usual due date, Aug. 20, falls on a Sunday this year.

Note: Many homeowners do not receive property tax bills directly from the city because they pay their property taxes through mortgage escrow accounts. Property owners paying the $300 minimum tax won’t receive any portion of this discount, for which about 152,000 Oahu residents did qualify.

>> Res A Rates: Two-tier tax rates have changed for Oahu’s Class I Residential A properties, which do not have home exemptions proving owner-occupancy. These may be rental properties, second homes or homes occupied by owners who didn’t know to seek the valuable exemption.

The Tier 1 rate for Res A dropped from $4.50 to $4 per $1,000 of assessed valuation up to $1 million, but the Tier 2 rate rose from $10.50 to $11.40 per $1,000 on the amount over $1 million. Therefore, property taxes on Res A homes may be lower or higher than last year, depending on their individual assessments. For example, the property tax on a $1 million Res A home drops $500, from $4,500 to $4,000. But the tax rises $40 on a $1.6 million home, from $10,800 to $10,840.

The new Res A rates took effect with the 2023-2024 tax year and are reflected in bills distributed July 20. Owner-occupants who didn’t realize they need the home exemption to avoid this higher tax category may apply for the exemption by Oct. 2 (the deadline is usually Sept. 30 but that falls on a Saturday this year), but it won’t kick in until the following tax year (2024-2025).

>> Home exemption: The home exemption for Oahu owner-occupants will increase from $100,000 to $120,000 for homeowners under 65 and from $140,000 to $160,000 for those 65 and older. The exemption amount is deducted from a home’s assessed value before its property tax is calculated.

The higher exemption will start with the 2024-2025 tax year and will appear on the 2024 Real Property Notice of Assessment to be distributed in December. Owners who already have this exemption don’t need to do anything to receive the higher amount next year. Owner-occupants who haven’t yet claimed it must apply by Oct. 2 to receive it next year.

Apply online at realpropertyhonolulu.com/ or file on paper with Form BFS-RPA-E-8-10.3, which you can download from the website or pick up at a satellite city hall or the Real Property Assessment Division office in Honolulu or Kapolei. The form contains detailed instructions.

>> Property Tax Credit: The income limit has jumped from $60,000 to $80,000 for a tax credit for homeowners whose property tax exceeds 3% of their gross income. Residents denied this credit in the past should reassess eligibility given the new limit.

To qualify, the applicant must have a home exemption; none of the property’s titleholders can own any other property; and the combined gross income of all titleholders cannot exceed $80,000. Eligible applicants will receive a tax credit next year (on their 2024-2025 tax bill) for the amount by which their 2023-2024 property taxes exceed 3% of their 2022 total gross income.

Link to the Real Property Tax Credit Application at 808ne.ws/tcapp, or download it at honolulu.gov/treasury, or pick up a copy at a satellite city hall or call the Tax Relief Office at 808-768-3205 to have one mailed to you. The deadline to apply is Oct. 2. Property owners must apply for this credit annually.

Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 7-500, Honolulu, HI 96813; call 808-529-4773; or email kokualine@staradvertiser.com.