Understanding the State of Hawaii Conveyance Tax

What Is the State of Hawaii Conveyance Tax?

The conveyance tax in Hawaii applies to all transfers of ownership or interest in real property through deeds, leases, subleases, assignments of lease, agreements of sale, assignments of agreements of sale, and other instruments. This tax is imposed regardless of whether the document is recorded. 

Transfers Subject to Conveyance Tax

Transfers of ownership or interest in real property that are subject to conveyance tax include, but are not limited to:

• Sales of real property interest
• Contributions of real property interest by shareholders, members, partners, or grantors to corporations, LLCs, partnerships, or trusts
• Distributions of real property interest from corporations, LLCs, partnerships, or trusts to their respective shareholders, members, partners, or beneficiaries
• Gifts of real property interest
• Payments for goods/services or debt settlements involving real property interest
• Leases, subleases, or timeshare interests with terms of five or more years

Who Is Subject to the Conveyance Tax?

Typically, the grantor, lessor, sublessor, assignor, transferor, seller, or any person conveying the real property interest is subject to the conveyance tax. For more insights, see our Seller's Guide.

Determining the Conveyance Tax

The conveyance tax is calculated based on the actual and full consideration paid or ultimately required to be paid. Here are the tax rates:

General Rates

• $0.10 per $100 for properties under $600,000
• $0.20 per $100 for properties between $600,000 and $1,000,000
• $0.30 per $100 for properties between $1,000,000 and $2,000,000
• $0.50 per $100 for properties between $2,000,000 and $4,000,000
• $0.70 per $100 for properties between $4,000,000 and $6,000,000
• $0.90 per $100 for properties between $6,000,000 and $10,000,000
• $1.00 per $100 for properties over $10,000,000

Non-Resident Rates

• $0.15 per $100 for properties under $600,000
• $0.25 per $100 for properties between $600,000 and $1,000,000
• $0.40 per $100 for properties between $1,000,000 and $2,000,000
• $0.60 per $100 for properties between $2,000,000 and $4,000,000
• $0.85 per $100 for properties between $4,000,000 and $6,000,000
• $1.10 per $100 for properties between $6,000,000 and $10,000,000
• $1.25 per $100 for properties over $10,000,000

The minimum tax for each transaction is $1.00. For a comprehensive guide, visit our Buyer's Guide.

Definition of Actual and Full Consideration

The actual and full consideration includes the price or amount paid for the property, including the value of any liens or encumbrances at the time of transfer. This consideration is not limited to cash and includes any promise, act, forbearance, property interest, value, gain, advantage, benefit, or profit offered by one party to another. For more insights, visit our Buyer vs. Seller Cost Guide.

For more detailed information on how the conveyance tax might affect your property transactions, check out our Conveyance Tax FAQ page.