When Selling a Hawaii Property, Does the Seller Pay Conveyance Tax?

Selling a property in Hawaiʻi? One cost sellers should be aware of is the Hawaiʻi Real Property Conveyance Tax.

The Conveyance Tax is generally paid by the seller (transferor) when real property is transferred from one owner to another. The tax is based on the property’s conveyance consideration, which can include the sale price and certain other amounts associated with the transfer.

What Should Sellers Know?

· The seller generally pays the Conveyance Tax when the property is transferred.

· The amount depends on the property's conveyance consideration and applicable tax rate.

· Different rates may apply depending on factors such as the property's use, location, and whether the buyer will use it as a principal residence.

· Certain exemptions or special circumstances may apply, so the tax due can vary from one transaction to another.

· The Conveyance Tax is separate from other potential costs associated with selling a property, such as commissions, escrow fees, or closing expenses.

What Are the Current Hawaiʻi Conveyance Tax Rates?

For transactions under the general conveyance-tax schedule, the current rates are:

Example: A $1 Million Sale

Suppose a property is sold for $1,000,000 and the transaction falls under the general rate schedule.

 

Applicable rate: $0.30 for every $100 of consideration

$1,000,000 ÷ $100 × $0.30 = $3,000 

 

The Hawaiʻi Conveyance Tax would therefore be $3,000 in this simplified example.

If the same $1 million sale were a condominium or single-family residence and the purchaser did not qualify for a county homeowner's exemption, the applicable rate would be $0.40 per $100, resulting in a conveyance tax of $4,000.

Understanding these costs before listing a property can help sellers have a clearer picture of their estimated net proceeds from a sale.

For current rates, exemptions, and requirements, sellers should consult the Hawaiʻi Department of Taxation or their real estate and closing professionals.

Rates shown are current as of October 2026 and are subject to change. This information is provided for general educational purposes. Sellers should consult their escrow professional, tax professional, or the Hawaiʻi Department of Taxation regarding their specific transaction.