Behind on Property Taxes in Hawaii?

You can still sell your land. When we buy land with back taxes, the taxes are paid off at closing from the sale, and you pay no fees or commissions.

Cash offer in 24 hours
Back taxes paid at closing from the sale
We pay closing costs
Close in as few as 7 days

How Hawaii collects

Redeemable deed state: a buyer gets a deed at the tax sale, but the owner can still buy it back for a set time.

Time to redeem

One year from the tax sale, or one year from recording of the tax deed if it is not recorded within 60 days of the sale.

The amount the buyer paid, plus the buyer's costs and expenses including the deed recording fee, plus interest at 12 percent a year, paid to the buyer.

What Happens When Taxes Go Unpaid in Hawaii

August 20
First installment due in Kauai, Hawaii and Honolulu counties (check a Maui bill).
February 20
Second installment due in Kauai, Hawaii and Honolulu counties.
Day after a missed due date
A 10 percent penalty and 1 percent monthly interest start in Kauai and Hawaii counties.
After years of delinquency
The county sends a final notice and lists the property for a tax sale (Maui: 3 or more years delinquent).
Tax sale day
The property is auctioned for at least the upset price. The buyer gets a tax deed.
Within 1 year of the sale (or of recording)
The owner can redeem by paying the buyer the price, costs and 12 percent a year interest.

Back Taxes in Hawaii: Your Options

This page explains what happens in Hawaii when real property taxes on land go unpaid. It covers the due dates, the penalty and interest, the county tax sale, the one year redemption period, surplus money, and the choices you have. It is written for owners of vacant land, including heirs.

Hawaii does not have a state property tax. Each of the four counties (Honolulu, Maui, Hawaii and Kauai) bills, collects and runs its own tax sale, so the details depend on where your land is. This page is general information, not legal or tax advice; confirm the numbers with your county.

When Hawaii property taxes become delinquent

Hawaii counties bill real property tax in two installments. Kauai County, Hawaii County and the City and County of Honolulu list the due dates as August 20 and February 20. In Kauai, if a due date falls on a weekend or holiday, it moves to the next business day. Maui sets its own schedule, so check the date on your bill.

Tax not paid by the due date is delinquent the next day.

Penalties and interest

Kauai County adds a one time 10 percent penalty and interest of 1 percent per month on late taxes. Hawaii County also adds a 10 percent penalty the day after the due date and 1 percent interest each month. Other counties set their own charges, so ask your county for a payoff amount.

What the county does next: the tax sale

If taxes stay unpaid for years, the county can sell the property at a public auction. Maui County, for example, auctions properties that are delinquent for three or more years and have received a final notice of tax sale. Each county sets its own schedule and notice process.

The minimum bid, called the upset price, is the tax, penalty and interest owed to the date of the auction plus costs. The county gives the winning bidder a tax deed, which the buyer records. The owner then has one year to redeem.

If the property sells for more than the upset price, the extra money is surplus. In Kauai County, the delinquent owner and others with an interest must file a claim for surplus funds. Ask your county how to file and by when.

Redemption after a Hawaii tax sale

Hawaii law lets the owner redeem within one year from the date of the sale. If the tax deed is not recorded within 60 days after the sale, the year runs from the date it is recorded (HRS 246-60, as applied by Kauai and Maui counties).

To redeem, you pay the buyer the amount the buyer paid, plus the costs and expenses the buyer had to pay, including the deed recording fee, plus interest of 12 percent a year. You make the arrangements directly with the buyer. In Maui County, the county is not involved in the redemption.

Your options if you are behind

The earlier you act, the less you pay.

Pay the county the tax, penalty and interest before the property is listed for a tax sale.
Ask your county whether it offers a payment plan for delinquent taxes.
If the property sold at a tax sale, redeem it from the buyer within one year.
Sell the land before the sale. The taxes are paid from the sale price.
If the land sold for more than the upset price, file a claim for the surplus.

Selling Hawaii land that has back taxes

Back taxes do not stop a sale. Until the redemption year runs out, the owner can still redeem, and before a tax sale you can sell the land like any other parcel. At closing, the title company or closing attorney pays the county from the sale price, and the buyer gets clean title.

EasyLotBuyer buys land with back taxes, liens, title issues and no road access, and buys from heirs and estates. We make a cash offer within 24 hours, charge no fees or commissions, pay the closing costs, and can close in as few as 7 days. The back taxes are paid at closing from the sale, so you do not need to find the money first.

Where to check what you owe

Contact the real property tax office of your county: the City and County of Honolulu Real Property Assessment, the County of Maui delinquent tax accounts page, Hawaii County Real Property Tax, or Kauai Real Property Collections. Ask for the payoff as of a date and whether the parcel is on a tax sale list.

Sources

Rules and fees change; check with the county before you act on them.

Back Tax Questions in Hawaii

Does Hawaii have a state property tax?

No. Each county sets, bills and collects real property tax and runs its own tax sale. Contact the county where your land is.

When are Hawaii property taxes due?

Kauai, Hawaii and Honolulu counties list August 20 and February 20. Maui sets its own schedule, so check your bill.

What is the penalty for late property taxes in Hawaii?

Kauai and Hawaii counties add a 10 percent penalty and 1 percent interest per month. Other counties set their own charges.

How long do I have to redeem after a Hawaii tax sale?

One year from the sale, or one year from recording if the deed is not recorded within 60 days. You pay the buyer the price, costs and 12 percent a year interest.

What happens to surplus from a Hawaii tax sale?

Money above the upset price is surplus. In Kauai County, the owner and others with an interest must file a claim for it. Ask your county about its claim steps.

Can I sell land in Hawaii that has back taxes?

Yes. The taxes, penalty and interest are paid to the county from the sale price at closing. We buy land with back taxes and pay the closing costs.