
Selling a property in Hawaii? There is one hidden line item that catches many sellers off guard at closing: the Hawaii Conveyance Tax.
Whether you are trading a family home in Honolulu or liquidating a luxury commercial asset on Maui, the State of Hawaii imposes a one-time transfer tax on the seller. But here is the critical detail that can cost—or save—you thousands: the amount you pay depends entirely on the buyer’s intentions.
If the buyer intends to be an owner-occupant and claim the County Homeowner’s Exemption, your tax rate is lower. If the buyer is an investor or purchasing a second home, your tax rate jumps significantly. For example, on a $2 million property, selling to an investor rather than a primary resident can increase your tax bill by 33%. When we enter the $10 million+ luxury tier, the investor penalty jumps by 25%.
Navigating graduated tax brackets, mandatory P-64 forms, and buyer intent requires a sharp eye during contract negotiations. With over 20 years of experience managing high-value, complex transactions for local families and international investors alike, I ensure my clients are never surprised at the closing table. Let’s protect your net proceeds.
🌐 My Personal Site: https://jasonwong.us
🏢 Island Dragonfly: https://islanddragonfly.com
📧 Contact me directly to schedule a complimentary property evaluation.
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