Hawaii Conveyance Tax

In reference to § 247-2 Basis and rate of tax of the Hawaii Revised Statutes: The tax imposed by section 247-1 shall be

based on the actual and full consideration (whether cash or otherwise, including any promise, act, forbearance, property interest, value, gain,

advantage, benefit, or profit), paid or to be paid, for all transfers or conveyance of realty or any interest therein, that shall include any liens or

encumbrances thereon at the time of sale, lease, sublease, assignment, transfer, or conveyance, and shall be at the following rates:

1. Excerpt as provided in paragraph (2):

(A) Ten cents per $100 for properties with a value of less than $600,000

(B) Twenty cents per $100 for properties with a value of at least $600,000, but less than $1,000,000; and

(C) Thirty cents per $100 for properties with a value of $1,000,000 or greater; and

2. For the sale of a condominium or single family residence for which the purchaser is ineligible for a county home

owner’s exemption on property tax:

(A) Fifteen cents per $100 for properties with a value of less than $600,000

(B) Twenty-five cents per $100 for properties with a value of at least $600,000, but less than $1,000,000; and

(C) Thirty five cents per $100 for properties with a value of $100 for properties with a value of $1,000,000 or greater.

Examples of How to Compute the Tax

Questions and Answers:

Q-Vacant Land: I have a residential property that’s vacant. Which scale is used for this property?

A-Vacant Land: County home exemption is not applicable for vacant land. Therefore, the land is

assessed by the graduated scale of .0010/.0020/.0030-based on the sales price.

Q-Commercial: We have a $2M transaction for a commercial building. The property is classified as

industrial. Which scale is to be used-.0030 or .0035?

A-Commercial: This is not a residential condo or single-family property. Therefore, use .0030.

Q-Trusts: My buyers are taking title in their trusts; are they automatically subject to the higher rate

even though they intend to use the property as their principal residence? We were told

that corporations, partnerships, LLCs and LLPs were automatically subject to the higher

rate since they cannot be considered owner/occupants.

A-Trusts: The entity clause only applies to corporations, partnerships, LLCs, LLPs, AND investment

trusts, such as a pension fund trust. It does not apply to an individual trust since the

settler can be the owner/occupant and, therefore, qualifies for a homeowner exemption.

For an individual trust, use .0010/.0020/.0030-based on the sales price.