Hawaii Real Estate Transfer
Tax Calculator

Hawaii has a multi-tiered conveyance tax that escalates sharply for high-value properties. Owner-occupants and first-time buyers benefit from the lower tiers.

A $700,000 primary home would pay approximately $1,400 (0.2% rate). In 2022, Hawaii added a 0.5% surcharge on investment properties (non-owner-occupied) through all tiers, making non-owner-occupied properties significantly more expensive to transfer.

A $2 million investment property in Hawaii now faces a combined rate of approximately 0.8% on the relevant tier.

The rate in Hawaii is **Tiered: 0.1% up to $600K; 0.2% $600K–$1M; 0.3% $1M–$2M; 0.5% $2M–$4M; 0.7% $4M–$6M; 0.9% $6M–$10M; 1.25% over $10M**. Payment responsibility: Seller (by convention).

Additional local charges apply: Additional 0.5% surcharge on investment properties (non-owner-occupied) enacted in 2022. The governing statute is Haw.

Rev. Stat.

§ 247-1 et seq..

Transfer taxes are calculated on the "consideration" — the actual sale price paid for the property. Most states exempt certain transfers from this tax, including: gifts (transfers for no or nominal consideration), spousal transfers, and government-to-government transfers.

Verify exemptions before assuming a particular transaction qualifies — the exemption application process typically requires filing specific forms at closing.

To calculate the Hawaii transfer tax: take the sale price, apply the rate of **Tiered: 0.1% up to $600K; 0.2% $600K–$1M; 0.3% $1M–$2M; 0.5% $2M–$4M; 0.7% $4M–$6M; 0.9% $6M–$10M; 1.25% over $10M**, and add any applicable local surcharges (Additional 0.5% surcharge on investment properties (non-owner-occupied) enacted in 2022). The tax is based on the gross consideration — not the net equity or the loan amount.

If a property sells for $450,000, apply the rate to the full $450,000 regardless of whether the seller has an existing mortgage.

Example calculation in Hawaii: On a $400,000 sale at Tiered: 0.1% up to $600K; 0.2% $600K–$1M; 0.3% $1M–$2M; 0.5% $2M–$4M; 0.7% $4M–$6M; 0.9% $6M–$10M; 1.25% over $10M: multiply $400,000 by the applicable percentage rate. Verify the exact rate with your title company or closing attorney.

Who pays is often negotiable between buyer and seller, even in states with a legal default payer. In competitive markets, sellers may agree to pay the buyer's share (or vice versa) as part of closing cost concessions.

The amount actually paid by each party should be reflected in the purchase contract. The title company or real estate attorney will collect the correct amount at closing and remit it to the appropriate government authority.

Hawaii exempts certain transfers from the transfer tax: Transfers between spouses, transfers to/from a trust for estate planning purposes, first-time homebuyers may qualify for lower tier. To claim an exemption, the deed or conveyance document must typically include a statement of exemption, and in some states a separate exemption affidavit must be filed with the recording.

Not claiming the exemption at the time of recording can make it difficult to obtain a refund later — work with a real estate attorney if your transaction may qualify.

• Nationally, common exemptions across states include: (1) transfers between spouses on divorce or death
• (2) transfers to a revocable living trust where the grantor is the beneficiary
• (3) deeds in lieu of foreclosure or foreclosure sales
• (4) transfers to nonprofit organizations
• (5) government-to-government conveyances
• and (6) certain court-ordered transfers. Even in states with generous exemptions, verify that your specific transaction meets the statutory criteria — exemptions are narrowly construed by most state revenue departments.

First-time homebuyer programs in some states include a transfer tax credit or reduced rate. Hawaii offers some first-time homebuyer benefit — review the specific conditions carefully and confirm with your closing agent.

In Hawaii, the transfer tax is conventionally paid by Seller (by convention). This convention is established by state law or by local custom, but the contract between buyer and seller can override it.

In hot markets, sellers sometimes offer to cover the buyer's share of transfer taxes as a concession. In buyer's markets, buyers may negotiate the reverse.

Understanding who pays matters for budgeting and offer negotiation. A seller's net proceeds calculation must deduct the transfer tax.

A buyer's cash-to-close estimate must include any buyer-paid transfer taxes plus all other closing costs. Real estate agents and title companies typically present the expected transfer tax allocation in the closing disclosure before closing day.

If you are using a real estate attorney for closing (required in some states, optional in others), they will prepare the transfer tax forms and ensure proper remittance. If you are using a title company, they handle the same functions.

Either way, you should receive a final closing disclosure at least 3 business days before closing that itemizes all transfer taxes and who is paying what amount.

For related real estate closing costs in Hawaii: the Title Insurance Calculator covers owner's and lender's title insurance premiums by state. The Property Tax Calculator estimates annual property taxes after purchase.

The Hawaii Homestead Exemption Calculator shows potential property tax savings for primary residence owners. To find a Hawaii real estate attorney for closing, search our attorney directory.