Honolulu is located in Honolulu County, Hawaii. Hawaii imposes a graduated conveyance tax on real estate transfers. For non-owner-occupants, rates range from $1.00 per $1,000 (0.10%) on sales up to $600,000, increasing to $12.50 per $1,000 (1.25%) on sales over $10,000,000. Owner-occupants receive reduced rates. The rate is applied to the full selling price, not in marginal brackets. The tax is collected by the Hawaii Department of Taxation.
In Honolulu and throughout Hawaii, the conveyance tax is paid by the seller (grantor) at the time of deed recording. The obligation is fixed by state law on the seller, though contract terms between buyers and sellers may vary. Buyers and sellers should confirm payment responsibilities with their real estate attorney or escrow company.
Certain Honolulu real estate transactions may be exempt from Hawaii's conveyance tax. Common exemptions include transfers with consideration of $100 or less, transfers between spouses or reciprocal beneficiaries, transfers to qualifying governmental entities, and certain foreclosure-related transfers. Consult a Hawaii real estate attorney to determine whether your transaction qualifies for an exemption.