Hawaii Closing Costs for Sellers in 2026: Transfer Tax, Fees and Real Numbers
Hawaii charges a tiered conveyance tax, starting at 10 cents per $100 under $600,000, and the seller is liable. Here is the math and what it means.
Hawaii has no flat transfer tax. It charges a tiered conveyance tax: 10 cents per $100 for most sales under $600,000, or 15 cents per $100 for a condo or single-family home when the buyer is not eligible for a county homeowner’s exemption. The statute makes the seller liable. Commission and other costs are negotiable.
What a Hawaii seller owes at closing
Hawaii does not use a single flat rate. Chapter 247 of the Hawaii Revised Statutes imposes a conveyance tax on transfers of real property, and the rate depends on the value of the property. For a seller, the good news is that the lowest band is small. The bad news is that the bands climb quickly on higher-priced property, and the statute treats some residential buyers differently.
The tax is based on the “actual and full consideration” paid, and the statute says that includes any liens or encumbrances on the property at the time of sale. That matters if you are buying with a subject-to structure or taking over debt: the debt counts toward the taxable value, not just the cash that changes hands.
The rate tiers
The statute sets two schedules. The first applies to most transfers. The second applies to the sale of a condominium or single-family residence where the purchaser is ineligible for a county homeowner’s exemption on property tax, so the test is whether your buyer can claim the county homeowner’s exemption, not who the buyer is.
| Property value | Standard rate (per $100) | Condo or single-family, buyer ineligible for homeowner exemption (per $100) |
|---|---|---|
| Under $600,000 | $0.10 | $0.15 |
| $600,000 to under $1,000,000 | $0.20 | $0.25 |
| $1,000,000 to under $2,000,000 | $0.30 | $0.40 |
| $2,000,000 to under $4,000,000 | $0.50 | $0.60 |
| $4,000,000 to under $6,000,000 | $0.70 | $0.85 |
| $6,000,000 to under $10,000,000 | $0.90 | $1.10 |
| $10,000,000 or more | $1.00 | $1.25 |
The minimum tax for any transaction is $1.
Who pays
Section 247-4 says the tax “shall be paid by the grantor, lessor, sublessor, assignor, transferor, seller, conveyor, or any other person conveying realty.” The one exception is when the United States or a government body is the seller, in which case the buyer pays. The tax is due no later than 90 days after the taxable transaction, and before the seal is imprinted on the document.
So the default under the statute is the seller. If you are negotiating a purchase contract, anything that shifts the cost to the buyer is a contract term, so ask your title company or closing attorney what is customary locally.
Worked example on a hypothetical $300,000 sale
The property is under $600,000, so the first band applies.
- Standard schedule: $300,000 divided by $100 is 3,000 units. 3,000 x $0.10 = $300.
- Higher schedule (condo or single-family, buyer ineligible for homeowner exemption): 3,000 x $0.15 = $450.
That is 0.10% or 0.15% of the price. The rate steps up with each band, so a seller above $600,000 should recalculate rather than reuse a number from a smaller sale.
Exemptions worth knowing
Section 247-3 lists transactions the tax does not apply to. Examples include documents given to secure a debt, documents that only confirm or correct a recorded deed, transfers between spouses, reciprocal beneficiaries or parent and child where only nominal consideration is paid, consideration of $100 or less, and transfers between a grantor and the grantor’s revocable living trust. The list is longer, so read the statute or ask your title company before relying on an exemption.
Other seller costs
Commission is negotiable. Mortgage payoff, prorated property taxes, escrow and title fees, and any recording costs also apply in most sales. This guide does not quote amounts for those because they depend on your lender, title company and county. Ask for a seller’s net sheet early.
Why investors care
Flips. The cost shows up on both ends. When you sell, the default is that you owe it. When you buy, the seller owes it by default, but any contract term that shifts it to you becomes a buy-side cost. Model the sell-side tax in your exit numbers, and use the higher schedule if your exit buyer is a condo or single-family purchaser who cannot claim a county homeowner’s exemption.
Wholesale assignment vs. double close. An assignment transfers your contract rights, and the statute’s list of taxable instruments includes assignments of agreements of sale, so ask your title company how an assignment is treated before you rely on it being tax-free. A double close means two closings and two sets of costs: the seller conveys to you, then you convey to your buyer. Each deed is a conveyance, and you are the grantor on the second one, so the statute puts the tax on you for that leg. Both legs are taxed on their own consideration.
Max allowable offer. Subtract the expected sell-side conveyance tax, using the right schedule for your exit buyer, along with your other holding and closing costs before you set your number.
Run your numbers
Use our closing cost calculator to add the conveyance tax to your deal math, and the deal analyzer for the full picture. Automize CRM keeps the numbers and the follow-ups in one place.
This is general information, not legal or tax advice. Confirm your exact figures with your title company or closing attorney.
Sources
Rates checked October 24, 2026. General information, not tax or legal advice.
Common questions
Who pays the conveyance tax in Hawaii?
Under Hawaii Revised Statutes section 247-4, the tax is paid by the grantor, seller or other person conveying the property. The exception is a sale where the United States or a government body is the seller, in which case the buyer pays. Your purchase contract can still address it, so confirm with your title company.
What is the Hawaii conveyance tax rate on a $300,000 sale?
At $300,000 the property falls in the under-$600,000 band. The rate is 10 cents per $100, which is $300, or 15 cents per $100, which is $450, for a condo or single-family home where the buyer is ineligible for the county homeowner’s exemption. The minimum tax per transaction is $1.
When is the Hawaii conveyance tax due?
The statute says the tax is due no later than ninety days after the taxable transaction, and in any event before the seal is imprinted on the document. Penalties and interest are added under section 231-39. Your title or escrow company normally handles the filing at closing.
Are any Hawaii transfers exempt from the conveyance tax?
Yes. Section 247-3 lists exemptions, including documents given to secure a debt, documents that only confirm or correct a recorded deed, transfers between spouses, reciprocal beneficiaries or parent and child for nominal consideration, and transfers into or out of a revocable living trust. Check the full list before assuming one applies.
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