Hawaii Conveyance Tax
Seller's Tips
March 29, 2008 | CONVEYANCE TAX IN HAWAI'I
As of July 1, 2005, there was a change in the amount of conveyance tax that sellers pay when transferring property. A conveyance tax, much like the name implies, is a tax paid to the state of Hawaii "for all transfers or conveyance of realty or any interest therein..." (Section 247.2 HRS)
On actual and full consideration paid for the transfer of realty, including leases and subleases, a tax of 10¢ per $100 is imposed for conveyances under $600,000; 20¢ per $100 for conveyances between $600,000 and $1 million; and 30¢ per $100 for conveyances in excess of $1 million.
Also imposes a conveyance tax for condominiums or single family residences that do not qualify for a homeowners exemption: 15¢ per $100 for properties valued up to $600,000; 25¢ per $100 for properties valued between $600,000 and $1 million; and 35¢ per $100 for properties valued at over $1 million. Minimum tax on each transaction is $1.00. Certain exemptions are allowed.
Thus, if you were selling a home in which the Buyers intends to occupy as their principal residence, the conveyance tax would be:
Under $ 600,000 = $ 600
Under $1,000,000 = $ 2,000
Over $1,000,000 = $ 4,500 (example: $1,500,000)
If you are selling a home in which the Buyers intend to use a second home, vacation property or a rental property for short term or long term the conveyance tax would be:
Under $ 600,000 = $ 900
Under $1,000,000 = $ 2,500
Over $1,000,000 = $ 5,250 (example: $1,500,000)
Distribution: 35% to state general fund, 10% to the land conservation fund, 30% into the rental housing trust fund, and 25% into the natural area reserve fund.
SOURCE: Compiled by the Tax Foundation of Hawaii from the Hawaii Revised Statutes (1968), as amended, and Revised Ordinances for various counties. Consult the statute, ordinance, rules, or regulations for specific cases or circumstances. | Posted in categories: [Seller's Tips] |
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