Costs of Selling Land in Hawaii

Selling Costs in Hawaii: What to Know

In Hawaii the seller pays the state conveyance tax. The rate rises with the price. Nonresident sellers also face HARPTA withholding at closing.

This page lists each cost, who pays it, and the official rule behind it, with a worked example on a $25,000 lot. This page is general information, not legal or tax advice.

Hawaii conveyance tax rates

Hawaii charges a conveyance tax on the full price. Vacant land uses the standard schedule. A higher schedule applies only to a condo or single-family home bought by someone who cannot claim a county home exemption. The minimum tax is $1.

The seller files Form P-64A and pays the tax to the Bureau of Conveyances within 90 days. See the Department of Taxation instructions.

• Under $600,000: $0.10 per $100
• $600,000 to under $1 million: $0.20 per $100
• $1 million to under $2 million: $0.30 per $100
• $2 million to under $4 million: $0.50 per $100
• $4 million to under $6 million: $0.70 per $100
• $6 million to under $10 million: $0.90 per $100
• $10 million or more: $1.00 per $100

Who pays what by custom

By law the conveyance tax falls on the seller. Escrow, title and other fees are split by the contract. Property taxes are set by each county and prorated at closing.

HARPTA withholding for nonresident sellers

Under HARPTA, the buyer must withhold 7.25% of the amount realized and send it to the state, unless the seller qualifies for an exemption, such as being a Hawaii resident. The money is a prepayment of Hawaii income tax, not a fee. You claim it on your return. See Tax Facts 2010-1.

Escrow, attorney or title company closing

Many Hawaii sales close through an escrow company, with a title company for the title policy. An attorney is helpful for estates, Land Court property or title problems. Fees are not set by law, so get a written quote.

Recording fees

The Bureau of Conveyances charges $41 to record a Regular System document up to 50 pages and $36 for a Land Court document. See the Bureau of Conveyances fee list.

Capital gains tax on land in Hawaii

Federal tax on the profit depends on how long you owned the land. Land held more than one year gives a long-term gain, taxed at 0%, 15% or 20% based on your income. For 2025, a single filer pays 0% on long-term gains if taxable income is $48,350 or less. Land held one year or less is taxed at your regular income rate. See IRS Topic 409.

Hawaii taxes income at 1.4% to 11%. For long-term capital gains, individuals can use an alternative rate of 7.25% under HRS 235-51 if it is lower. Bills to raise this rate have been introduced, so confirm the rate for your sale year with the Department of Taxation.

How selling to a cash buyer changes the costs

When you sell to EasyLotBuyer, we pay closing costs and you pay no fees or commissions. You get a cash offer within 24 hours, and we can close in as few as 7 days.

We buy land with back taxes, liens, title issues or no road access, and land held by heirs or estates. Back taxes are paid at closing from the sale, so you do not need cash up front. Taxes on your own profit stay your responsibility, so talk to a tax professional about capital gains.

Ready to see a number? Get a cash offer for your Hawaii land.