Hawaii Conveyance Tax: What Oahu Sellers Pay in 2026

The Hawaii conveyance tax is a state tax on the transfer of real estate, and on a normal Oahu sale the seller pays it out of the proceeds at closing. The rate depends on your sale price and, for a house or condo, on whether your buyer will qualify for the county home exemption.

It surprises a lot of sellers the first time they see a net sheet. Here is how it works, what it costs at real Oahu prices, and where the traps are, with links to the official pages so you can check every number. For the full picture of selling, start with my complete guide to selling a house on Oahu.

In this guide:

• What the Hawaii conveyance tax is
• Who pays it
• Hawaii conveyance tax rates for 2026
• Why your buyer changes your rate
• What it costs at real Oahu prices
• The price threshold jump
• What counts as the sale price
• How and when it gets paid
• When a transfer is exempt
• Conveyance tax vs HARPTA and income tax
• Is the conveyance tax changing?
• FAQ
• Bottom line

What Is the Hawaii Conveyance Tax?

Chapter 247 of the Hawaii Revised Statutes taxes transfers of real property by deed, lease, agreement of sale and similar documents, unless the transfer is specifically exempt. The Department of Taxation administers it, but the forms and payment go to the Bureau of Conveyances.

Worth knowing up front:

• It is a state tax that applies on every island, not a City and County of Honolulu tax.
• It is based on the price, not your profit. The instructions say plainly that it does not matter whether the sale produced a gain or a loss.
• The minimum tax on any taxable transfer is $1, and the amount is rounded to the nearest ten cents.

Who Pays the Conveyance Tax in Hawaii?

The seller. Section 247-4 says the tax is paid by the grantor, seller, transferor or other person conveying the property. The one exception in the statute is when a government agency is the seller; then the buyer pays.

If you are used to a mainland state where the buyer covers transfer taxes, do not assume that here. On the sales I handle, escrow figures the tax, has both sides sign the certificate, and takes the amount out of the seller’s proceeds before the money is wired.

Hawaii Conveyance Tax Rates for 2026

These are the rates in section 247-2 of the Hawaii Revised Statutes, confirmed against the Department of Taxation’s 2025 revision of the Form P-64A instructions. Section 247-2 was last amended in 2009, and the form still points transfers dated before July 1, 2009 to the older rates. All rates are per $100 of the sale price.

In other words, 10 cents per $100 is 0.1 percent of the price, 20 cents is 0.2 percent, and so on. The standard column covers everything that is not in the second column, including vacant land and commercial property.

Why Your Buyer Changes Your Conveyance Tax Rate

The higher schedule applies to “the sale of a condominium or single family residence for which the purchaser is ineligible for a county homeowner’s exemption on property tax.” So the rate turns on your buyer, even though you are the one paying.

On Oahu, the City’s home exemption applies only to property owned and occupied as the owner’s principal home. So if your buyer will live there as their main home, you are usually in the standard column. If they are buying a second home or a rental, the higher column generally applies. I wrote more about the exemption itself in my Oahu home exemption guide.

Your own residency does not pick the column; the buyer’s eligibility does. That also means two offers at the same price can net you slightly different amounts if one buyer will live there and the other will not. It is rarely the deciding factor, but it belongs on the comparison. In my experience, escrow confirms which column applies when it prepares the certificate.

What the Conveyance Tax Costs at Real Oahu Prices

Here is the math at a few price points, calculated straight from the rate table. Your actual figure comes from escrow based on your final price.

For most Oahu sellers it is a modest line next to commission and closing costs, though it grows above $2 million. For where prices sit now, see my Oahu market update for 2026.

Want to see what this looks like on your own home? Get a free home value, or call or text me at (808) 459-6450. I am Devin Hammack with Team Taparra at eXp Realty.

The Price Threshold Jump Sellers Should Know About

The Hawaii conveyance tax is not a marginal tax like income tax. Once your price crosses a threshold, the higher rate applies to the entire price, not just the part above the line.

That creates small jumps right at the thresholds:

• A $599,000 sale at the standard rate is $599. A $600,000 sale is $1,200.
• A $995,000 sale at the standard rate is $1,990. A $1,000,000 sale is $3,000.

In the second example, $5,000 more in price costs $1,010 more in tax, so the seller still nets more at the higher price. Never turn down a higher offer over this. But when you are pricing right around $600,000, $1 million or $2 million, run both numbers.

What Counts as the Sale Price for Conveyance Tax

The tax is based on “actual and full consideration,” which the instructions define as everything paid or required to be paid for the property. A few details matter for sellers:

• It includes liens and mortgages. Consideration includes the value of any liens or encumbrances on the property. The tax is figured on the full price, not on your equity, so paying off your mortgage from the proceeds does not shrink it.
• It is not only cash. A buyer assuming your debt, property traded in exchange, or other economic benefits all count.
• Furniture sold with the home. The instructions list tangible personal property like furniture as consideration, and Form P-64A has a line to subtract personal property included in the price. If you are selling furnished, keep a clear written list and ask escrow and your CPA how it should be reported.

Leasehold property has its own math: leases with five or more years remaining are taxed on the rent discounted to present value at 6 percent. My leasehold vs. fee simple guide covers the basics.

How and When the Conveyance Tax Gets Paid

The tax is reported on Form P-64A, the Conveyance Tax Certificate. The instructions require:

• One form per taxable document. The Bureau of Conveyances will reject a taxable deed that comes in without a completed P-64A and payment.
• Signatures from both sides. At least one seller and one buyer must sign. An authorized representative can sign if they hold a power of attorney on Form N-848.
• A 90 day deadline. The tax is due no later than 90 days after the date of transaction, which is the later of the day the deed is signed or the last notary acknowledgment.
• Penalties if it is late. The late filing penalty is 5 percent of the tax per month, up to 25 percent, plus interest of two thirds of 1 percent per month.

In a regular sale, escrow prepares the P-64A, you and the buyer sign it with your closing documents, and the tax is paid when the deed records. The deadline matters more for transfers outside a sale, like a deed between family members. If you are selling from the mainland, my guide to selling Oahu property from out of state covers how signing works from a distance.

When a Transfer Is Exempt From Conveyance Tax

A normal sale is taxable. Section 247-3 exempts transfers including:

• Documents that only secure a debt, like a mortgage.
• Transfers between spouses, reciprocal beneficiaries, or parent and child for only nominal consideration.
• Transfers where the consideration is $100 or less.
• Transfers to your own revocable living trust, or from that trust back to you as beneficiary.
• Transfer on death deeds under chapter 527.
• Transfers between divorcing spouses made under a court order in the divorce.

Many exempt transfers still need paperwork, which is Form P-64B; its instructions list the few kinds of documents that do not. Some go to the Department of Taxation’s Technical Section first, which reviews them within ten business days. This is where an attorney earns their fee, so do not guess on a family or trust transfer.

Conveyance Tax vs HARPTA and Income Tax

• Conveyance tax is a transfer tax on the price. You pay it and it is gone.
• HARPTA is withholding when the seller is a nonresident. The Department of Taxation says it serves to collect Hawaii income tax the seller may owe, and the seller files a Hawaii income tax return to get credit for it.
• Income tax on your gain is its own question for your CPA, with rules for your main home, rentals and depreciation.

If you live off island, HARPTA is the bigger number to plan for, and I cover it in my out of state seller guide.

Is the Hawaii Conveyance Tax Changing?

In 2026, House Bill 2049 proposed restructuring the conveyance tax into a marginal system for residential sales, with inflation adjusted thresholds. The Senate draft carried an effective date of July 1, 3000, and the Department of Taxation’s July 31, 2026 summary of tax law changes from the 2026 session does not list any conveyance tax change.

The rates above are the ones on the current P-64A. If you sell next year, check the current form first, because proposals come back.

Hawaii Conveyance Tax FAQ

Does the buyer or seller pay conveyance tax in Hawaii?

Hawaii law puts the conveyance tax on the seller. The only exception in the statute is when a government agency is the seller, in which case the buyer pays. Escrow normally takes it out of the seller’s proceeds at closing.

How much is the conveyance tax on a $1 million home in Hawaii?

At $1,000,000 the standard rate is 30 cents per $100, which is $3,000. If the home is a house or condo and the buyer is not eligible for the county home exemption, the rate is 40 cents per $100, which is $4,000.

Why is there a higher conveyance tax rate for some sales?

The higher schedule applies when a condominium or single family residence is sold to a buyer who is ineligible for the county home exemption, which on Oahu generally means the buyer will not live there as their principal home.

Is Hawaii conveyance tax based on my profit?

No. It is based on the full sale price, including any liens or mortgages on the property. The Department of Taxation says it does not matter whether the sale produced a gain or a loss.

Do I pay conveyance tax when I put my home in a living trust?

A transfer to your own revocable living trust, or from that trust back to you as beneficiary, is exempt under section 247-3. Ask your attorney or escrow whether a Form P-64B needs to go with the deed.

Hawaii Conveyance Tax: The Bottom Line

The Hawaii conveyance tax is a seller cost figured on your full sale price, at a rate set by the price bracket and, for a house or condo, by whether your buyer will qualify for the home exemption. Escrow handles the form and payment at closing.

Know your bracket, know the buyer’s plans can move the rate, and put the number on your net sheet before you list. This is general information about how the tax works, not tax or legal advice. Confirm your own situation with a CPA, a real estate attorney or your escrow officer.

Sources

• Hawaii Department of Taxation: Instructions for Form P-64A (Rev. 2025)
• Hawaii Department of Taxation: Form P-64A, Conveyance Tax Certificate (Rev. 2025)
• Hawaii Department of Taxation: Instructions for Form P-64B (Rev. 2025)
• Hawaii Revised Statutes Chapter 247, Conveyance Tax (Department of Taxation compilation as of 12/31/2025)
• Hawaii Department of Taxation Announcement No. 2026-06: Tax Law Changes from the 2026 Regular Legislative Session
• Hawaii State Legislature: H.B. 2049, S.D. 1 (2026)
• City and County of Honolulu Real Property Assessment: Home Exemption
• Hawaii Department of Taxation: Form N-288, HARPTA Withholding Return and Instructions

Thinking about selling and want to know what you would actually walk away with? Get a free home value, or call or text me at (808) 459-6450. I am Devin Hammack with Team Taparra at eXp Realty.