When Selling a Hawaii Property, Does the Seller Pay Conveyance Tax?

Selling a property in Hawaiʻi? One cost sellers should be aware of is the Hawaiʻi Real Property Conveyance Tax.

The Conveyance Tax is generally paid by the seller (transferor) when real property is transferred from one owner to another. The tax is based on the property’s conveyance consideration, which can include the sale price and certain other amounts associated with the transfer.

What Should Sellers Know?

· The seller generally pays the Conveyance Tax when the property is transferred.

· The amount depends on the property's conveyance consideration and applicable tax rate.

· Different rates may apply depending on factors such as the property's use, location, and whether the buyer will use it as a principal residence.

· Certain exemptions or special circumstances may apply, so the tax due can vary from one transaction to another.

· The Conveyance Tax is separate from other potential costs associated with selling a property, such as commissions, escrow fees, or closing expenses.

What Are the Current Hawaiʻi Conveyance Tax Rates?

For transactions under the general conveyance-tax schedule, the current rates are:

Example: A $1 Million Sale

Suppose a property is sold for $1,000,000 and the transaction falls under the general rate schedule.

Applicable rate: $0.30 for every $100 of consideration

$1,000,000 ÷ $100 × $0.30 = $3,000 

The Hawaiʻi Conveyance Tax would therefore be $3,000 in this simplified example.

If the same $1 million sale were a condominium or single-family residence and the purchaser did not qualify for a county homeowner's exemption, the applicable rate would be $0.40 per $100, resulting in a conveyance tax of $4,000.

Understanding these costs before listing a property can help sellers have a clearer picture of their estimated net proceeds from a sale.

For current rates, exemptions, and requirements, sellers should consult the Hawaiʻi Department of Taxation or their real estate and closing professionals.

Rates shown are current as of October 2026 and are subject to change. This information is provided for general educational purposes. Sellers should consult their escrow professional, tax professional, or the Hawaiʻi Department of Taxation regarding their specific transaction.

If you own and occupy a home as your primary residence on Hawaiʻi Island, you may qualify for Hawaiʻi County's Homeowner Exemption. Filing for this exemption can help reduce the taxable value of your property and potentially lower your annual property tax bill.

How to File

To apply for the Homeowner Exemption, homeowners generally need to:

•  Confirm eligibility: Make sure you own and occupy the property as your principal residence and meet the County's requirements.
•  Complete the application: Fill out the required Home Exemption application form.
• Provide supporting documents: Submit any required documentation, which may include proof of ownership, residency, or other information requested by the County.
• Submit by the applicable deadline: The filing deadlines for the homeowner application are June 30 and December 31. The date you file determines when the tax benefit begins:
  •  File January 1 through June 30: The tax benefit begins the following January 1.
  •  File July 1 through December 31: The tax benefit begins the following July 1.

Important to Know

The Homeowner Exemption is not automatically granted simply because you own a home. Eligible homeowners must complete the application process and meet the County's requirements. If you recently purchased a property or changed your primary residence, be sure to check whether you need to file a new application.

For current application forms, eligibility requirements, and deadlines, visit the County of Hawaiʻi Real Property Tax Office.

This article is for general informational purposes only and is not tax, legal, or financial advice. Requirements, exemption amounts, and deadlines may change. Please consult the County of Hawaiʻi Real Property Tax Office for the most current information regarding your specific situation.

Thinking about renting out a home or condominium as a vacation rental? In Hawaiʻi, short-term rental income can come with additional tax responsibilities that property owners should understand before getting started.

Hawaiʻi generally treats rentals of less than 180 consecutive days as transient accommodations. Rental income from Hawaiʻi real property is subject to Hawaiʻi income tax and General Excise Tax (GET), and when the property is operated as a transient accommodation, Transient Accommodations Tax (TAT) also applies.

What Should Vacation Rental Owners Know?

• Rental income is taxable. Income received from renting Hawaiʻi real property must be reported on the appropriate Hawaiʻi income tax return. This applies to both long-term and short-term rental activity.

• General Excise Tax (GET) applies. Hawaiʻi's State GET rate is 4%. For properties located on the Big Island, Hawaiʻi County currently imposes an additional 0.5% county surcharge, resulting in a combined GET tax rate of 4.5%. If the tax is visibly passed on to the renter, the maximum pass-on rate in Hawaiʻi County is currently 4.712%.

• Transient Accommodations Tax (TAT) applies to short-term rentals. Hawaiʻi's State TAT is currently 10.25% on taxable gross rental proceeds for transient accommodations. In addition, Hawaiʻi County imposes its own 3% Hawaiʻi County Transient Accommodations Tax (HCTAT). This means qualifying Big Island transient accommodations may be subject to both the 10.25% State TAT and 3% County TAT.

• GET and TAT are separate taxes. Vacation rental owners should be aware that GET and TAT have different requirements and should not be treated as a single tax. Depending on the rental activity, both may apply in addition to Hawaiʻi income tax.

• Registration and tax filings are required. Operators of short-term rentals generally must register for GET and TAT licenses with the Hawaiʻi Department of Taxation and file the required periodic and annual tax returns.

• County regulations also matter. Taxes are only one part of operating a vacation rental. Hawaiʻi County has its own rules governing short-term vacation rentals, and zoning, registration, permitting, and other operational requirements may apply depending on the property and its location.

Current Big Island Vacation Rental Tax Rates

As of October 2026, the key rates include:

State GET: 4%
Hawaiʻi County GET Surcharge: 0.5%
State TAT: 10.25%
Hawaiʻi County TAT (HCTAT): 3%

Tax rates and regulations are subject to change. Property owners should verify current requirements with the Hawaiʻi Department of Taxation, Hawaiʻi County, and a qualified tax professional.

If you're considering purchasing a property as a vacation rental, understanding the tax and regulatory requirements before you buy can help you more accurately estimate the property's potential expenses, responsibilities, and overall investment.

For more information:
Hawaiʻi Department of Taxation – Renting Residential Real Property

This article is for general informational purposes only and is not tax, legal, or financial advice. Tax obligations and short-term rental regulations can vary depending on the property and how it is used. Please consult the Hawaiʻi Department of Taxation and the applicable county authorities for current requirements.

If your home on Hawaiʻi Island is your primary residence, you may qualify for Hawaiʻi County’s Homeowner Exemption. The exemption reduces the taxable value of your property, which may help lower your annual property tax bill.

You may qualify for the Homeowner Exemption if you:

• Own and occupy the property as your principal home for more than 200 days of the calendar year.
• Have your ownership recorded with the Bureau of Conveyances or Land Court by the required deadline. Certain long-term recorded lessees may also qualify.
• Do not claim a homeowner or homestead exemption on another property in Hawaiʻi or elsewhere.
• File a Hawaiʻi Resident Income Tax Return (N-11) within the required period, or qualify for an applicable waiver.
• Submit the Home Exemption application (RP Form 19-71) with the required documentation by the applicable deadline.
• Additional Exemption: Meet the age requirements for an increased exemption, if applicable. The exemption amount increases for qualifying homeowners who reach certain age brackets, beginning at age 60. Age is determined as of January 1, and proof of age must be provided with the application.

If you recently purchased a home or made a property your primary residence, it may be worth checking whether you qualify. Taking advantage of an exemption you are eligible for could help reduce your property tax expenses year after year.

For current requirements, deadlines, and application information, visit the County of Hawaiʻi Real Property Tax Office.

This article is for general informational purposes only and is not tax, legal, or financial advice. Requirements, exemption amounts, and deadlines may change. Please consult the County of Hawaiʻi Real Property Tax Office for the most current information regarding your situation.

When driving around Hawaiʻi Island, it’s easy to focus on where we’re headed, Kona, Kohala, Hilo, or somewhere in between. But the names and boundaries of the places we pass through often carry stories that go back generations.

A local community effort to install signs identifying ahupuaʻa is hoping to make those connections a little more visible.

An ahupuaʻa is a traditional land division that generally extended from the upland areas toward the sea, connecting different parts of the landscape and the resources within them. These areas were not simply lines on a map. They reflected relationships between people, land, water, and the ocean.

For longtime residents, these names may already be familiar. For others, including newer residents and visitors, seeing an ahupuaʻa name on a roadside sign could offer a simple reminder that the communities we know today have much deeper histories.

That is what makes this effort interesting. A sign may seem like a small thing, but it can encourage people to pause and learn more about the place they are in.

Here on Hawaiʻi Island, where communities can feel very different from one district to the next, understanding the land and its history can add another layer to our sense of place. It can help connect present-day neighborhoods, farms, businesses, schools, and homes with the larger story of the island.

There is also something positive about making local history part of everyday life rather than keeping it only in books or museums. A simple sign along the road can become a starting point for a conversation with a child, a neighbor, or someone new to the island.

As Hawaiʻi continues to grow, efforts like this offer a thoughtful way to keep local identity visible. Growth and change are part of island life, but so is remembering the places, names, and connections that came before us.

Sometimes, learning more about where we live begins with something as simple as knowing the name of the land beneath our feet.

Source: Inspired by reporting from the Hawaiʻi Tribune-Herald, August 2026.