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7-tier graduated marginal — higher rates on non-owner-occupied

Hawaii Real Property Conveyance Tax (2026)

Hawaii imposes a Real Property Conveyance Tax on all real estate transfers. Unlike many transfer taxes, Hawaii's is genuinely graduated marginal — each rate applies only to the price within that bracket. However, properties that are NOT used as the buyer's principal residence face significantly higher rates, making Hawaii's system one of the most nuanced in the country.

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2026 Rate Table

Tax / FeeRateWho PaysNote
Owner-occupied (up to $600K)0.1%Seller
Owner-occupied ($600K–$1M)0.25%Seller
Owner-occupied ($1M–$2M)0.40%Seller
Owner-occupied ($2M–$4M)0.60%Seller
Owner-occupied ($4M–$6M)0.85%Seller
Owner-occupied ($6M–$10M)1.10%Seller
Owner-occupied ($10M+)1.25%Seller
Non-owner-occupied (under $600K)
1.5× owner-occupied rates across all brackets
0.15%Seller
Non-owner-occupied ($10M+)
Investment property top rate
1.90%Seller

Real-World Examples

$1.5M owner-occupied
~$4,800 (graduated marginal calc across 3 brackets) — effective rate ~0.32%
$1.5M investment/vacation
~$7,200 — 1.5× the owner-occupied amount
$5M owner-occupied
~$25,100 (graduated marginal) — effective rate ~0.50%

What Catches People Off Guard

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Hawaii's tax is genuinely graduated marginal — each rate applies only to the portion in that bracket. The effective rate is always lower than the top bracket rate.

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The non-owner-occupied (investment/vacation) property rates are approximately 1.5× the owner-occupied rates — significant for Maui and Oahu vacation property buyers.

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Hawaii's conveyance tax is paid by the SELLER by statute, though parties can contractually agree otherwise.

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Hawaii counties (Honolulu, Maui, Hawaii, Kauai) do not impose separate county transfer taxes — the state conveyance tax is the only transfer tax.

Frequently Asked Questions

Is Hawaii's conveyance tax graduated marginal or a cliff tax?

It is genuinely graduated marginal — each rate applies only to the portion of the sale price within that bracket, not the full amount. This is similar to how federal income tax brackets work.

What counts as "owner-occupied" for Hawaii conveyance tax purposes?

The buyer must claim the property as their principal residence in Hawaii. Vacation homes, second homes, and investment properties (rental condos, etc.) do not qualify for the lower owner-occupied rates and are taxed at approximately 1.5× the standard rates.

Who pays Hawaii's conveyance tax — buyer or seller?

By statute, the conveyance tax is the seller's obligation. However, as in most states, the purchase contract can allocate the tax differently between buyer and seller.

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Related Guides

Washington State
Graduated marginal — up to 3.0% on high-value sales
Colorado Mountain Towns
Local RETT up to 3% — surprise cost for ski resort buyers
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