HI · #40 by population

Buying a home in Hawaii

Costs and rules that are specific to Hawaii. Main city: Honolulu.

In short

Hawaii taxes property sales through its conveyance tax, does not require an attorney at closing and requires a seller disclosure form. It allows both court and out-of-court foreclosure and is not a community property state. Deadline to appeal a property tax assessment: january 15 (notices of assessment mailed or posted by December 15).

Calculate for Hawaii

If you buy

Hawaii state transfer tax

Conveyance tax (HRS chapter 247): $0.10 to $1.00 per $100 of full consideration by price bracket; $0.15 to $1.25 per $100 for condos and single-family homes when the buyer is ineligible for a county homeowner's exemption.

Price$875,900
State transfer taxnot computed
Who paysThe seller

Default price: the Hawaii median value of owner-occupied homes, $875,900 (Census ACS 2024). Not computed: One rate, chosen by the price bracket, applies to the whole price (not slice by slice). Per $100, all other sales: under $600,000 $0.10; $600,000 to under $1,000,000 $0.20; $1,000,000 to under $2,000,000 $0.30; $2,000,000 to under $4,000,000 $0.50; $4,000,000 to under $6,000,000 $0.70; $6,000,000 to under $10,000,000 $0.90; $10,000,000 or more $1.00. Condo or single-family home, buyer not eligible for a county homeowner's exemption: $0.15, $0.25, $0.40, $0.60, $0.85, $1.10, $1.25 in the same brackets. Minimum $1.00 per transaction; Form P-64A rounds to the nearest ten cents. Who pays: The person who conveys the property pays; if a federal, state or county government is the seller, the buyer pays. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Hawaii transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Hawaii state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Hawaii in short

Is there a real estate transfer tax in Hawaii?

Hawaii taxes property transfers with a conveyance tax of $0.10 to $1.00 per $100 of the full price, depending on the price, or $0.15 to $1.25 for condos and single-family homes sold to buyers who cannot claim a county homeowner's exemption. The seller is the person subject to the tax.

Full Hawaii guide · Compare all 50 states

What closing costs does Hawaii law set?

Hawaii has no official typical closing-cost total. The seller pays the conveyance tax by state rule ($1,600 on an $800,000 sale at the 2025 schedule) and recording a deed in the Regular System costs $41 per document up to 50 pages.

Full Hawaii guide · Compare all 50 states

How is property tax calculated in Hawaii?

In Honolulu, Hawaii, an owner with the home exemption pays $3.50 per $1,000 of net taxable value for July 1, 2026 to June 30, 2027, and the home exemption removes $120,000 of assessed value ($160,000 if 65 or older). To appeal, file with the Board of Review by January 15.

Full Hawaii guide · Compare all 50 states

What is the deadline to appeal a property tax assessment in Hawaii?

In Honolulu, Hawaii, file an appeal with the Board of Review by January 15, online or on the city's form. The usual ground is that the assessed value exceeds market value by more than 10%, and you must bring evidence such as comparable sales.

Full Hawaii guide · Compare all 50 states

Do you need a real estate attorney to close in Hawaii?

The Hawaii statutes read do not require a buyer or seller to hire an attorney to close. Only a licensed escrow depository corporation may act as escrow for a fee (HRS 449-5), while attorneys and brokers may hold escrow only with no escrow fee (HRS 449-3).

Full Hawaii guide · Compare all 50 states

What must a home seller disclose in Hawaii?

Hawaii has a mandatory seller-disclosure law, chapter 508D of the Hawaii Revised Statutes. The sources reviewed do not state its deadlines, form contents or buyer remedies.

Full Hawaii guide · Compare all 50 states

How does foreclosure work in Hawaii?

Hawaii allows foreclosure both by court action and by non-judicial power of sale under HRS chapter 667, according to the state's DCCA. The article does not state a typical foreclosure timeline, redemption period or deficiency rule.

Full Hawaii guide · Compare all 50 states

What first-time home buyer programs does Hawaii offer?

Hawaii's main first-time buyer program is the Hale Kamaʻāina Mortgage Program of the Hawaiʻi Housing Finance and Development Corporation (HHFDC), a 30-year fixed-rate loan through a participating lender.

Full Hawaii guide · Compare all 50 states

Which natural hazards affect home insurance in Hawaii?

A standard Hawaii homeowners policy (form HO-3) excludes hurricane, flood, tidal wave and earthquake losses, so separate policies may be needed. An NFIP policy covers up to $250,000 of building damage and takes 30 days to start unless bought with a mortgage.

Full Hawaii guide

How much tax when you sell a home in Hawaii?

The federal rule is the same in Hawaii as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. Hawaii income tax on the gain is not computed here.

Capital gains on a home sale

Hawaii guides

Honolulu

Buying a home in Honolulu, Hawaii

Professionals in Hawaii

All states · Federal guides