The short answer
Hawaii taxes every transfer of an interest in real property at a rate set by the price, from 10 cents per $100 under $600,000 to $1.00 per $100 at $10 million and above, with a steeper schedule of 15 cents to $1.25 when a condominium or single-family residence goes to a buyer who cannot claim a county homeowner's exemption. The seller pays on Form P-64A within 90 days. There is no exemption for a section 1031 exchange: the Department's instructions state that when parties exchange real property "both conveyances are subject to the conveyance tax." The tax is a transactional closing item the qualified intermediary can pay, and it reduces boot on Form 8824. Hawaii's separate HARPTA withholding is handled on Form N-289.
At a glance
| General schedule | $0.10 per $100 under $600,000, rising through five steps to $1.00 per $100 at $10,000,000 or more, on the entire consideration |
|---|---|
| Higher schedule | $0.15 per $100 under $600,000 up to $1.25 per $100 at $10,000,000 or more |
| What triggers the higher schedule | A condominium or single-family residence sold to a purchaser who is ineligible for a county homeowner's exemption, which describes most investor buyers |
| Who pays | The grantor, lessor, assignor or other person conveying the interest |
| Form and deadline | Form P-64A, Conveyance Tax Certificate, filed with payment at the Bureau of Conveyances no later than 90 days after the transaction date |
| Late penalty | 5% of the tax per month or part of a month, up to 25%, plus interest at two-thirds of 1% per month |
| Exchange exemption | None. HRS section 247-3 lists the exempt documents and an exchange of real property is taxed on both conveyances |
| Minimum tax | $1.00 per transaction; consideration includes any lien or encumbrance the buyer takes over |
Hawaii taxes the deed on the full price, and an exchange is still a sale
HRS section 247-2 bases the tax on "the actual and full consideration" paid, including liens or encumbrances on the property at the time of sale, in seven tiers. The general schedule is 10 cents per $100 under $600,000, 20 cents from $600,000, 30 cents from $1,000,000, 50 cents from $2,000,000, 70 cents from $4,000,000, 90 cents from $6,000,000 and $1.00 per $100 at $10,000,000 or more. Each rate applies to the whole consideration, so a price that crosses a threshold is taxed at the higher rate from the first dollar.
The Form P-64A instructions list what counts as a transfer: a sale, a contribution of real property to a corporation, LLC or trust by an owner, a distribution out of one, a gift, and any lease or sublease with five or more years to run. The tax applies whether or not the document is recorded and whether the transfer produced a gain or a loss.
The same instructions settle the exchange question: "When parties exchange real property interests, both conveyances are subject to the conveyance tax. The consideration shall be the fair market value of all property interests exchanged plus any other consideration." A deferred exchange through a qualified intermediary is two ordinary sales for the Bureau of Conveyances; only the income tax on the gain is deferred, a separate question covered under whether a 1031 defers state capital gains tax.
The higher schedule is about the buyer, but the seller pays it
Paragraph (2) of section 247-2 applies a second schedule "for the sale of a condominium or single family residence for which the purchaser is ineligible for a county homeowner's exemption on property tax": 15 cents per $100 under $600,000, 25 cents from $600,000, 40 cents from $1,000,000, 60 cents from $2,000,000, 85 cents from $4,000,000, $1.10 from $6,000,000 and $1.25 at $10,000,000 or more.
For an exchanger the test cuts both ways. Sell a rental condo or house to another investor or a second-home buyer and your tax is computed on the higher schedule, even though you pay it. Buy a Hawaii condo as replacement property and you are the ineligible purchaser, so the seller's tax rises and tends to surface in negotiations. Apartment buildings, retail, industrial, land and leasehold assignments are never on the higher schedule.
On the form, Part II line 5 is a checkbox for transactions that are not a sale of a condominium or single-family residence, or where the purchaser qualifies for the homeowner's exemption. Leaving it unchecked puts the sale on the higher schedule, and the rate on line 6 must match. Both seller and buyer sign, and a false declaration is a class C felony.
Form P-64A goes to the Bureau of Conveyances within 90 days, with the money
The Department of Taxation administers the tax but the Bureau of Conveyances collects it. The person subject to the tax files Form P-64A and pays "no later than 90 days after the date of transaction regardless of whether the document will be recorded or not." The transaction date is the later of execution or the last notarial acknowledgment, and the Bureau rejects a taxable deed that arrives without the certificate and payment.
Miss the 90 days and HRS section 231-39 charges a late-filing penalty of 5% of the tax per month or part of a month, capped at 25%, plus interest of two-thirds of 1% per month. The tax is rounded to the nearest ten cents and is never less than $1.00.
Consideration is broader than the cash price. The instructions include a release from or assumption of debt, an increase in the value of an LLC or partnership interest, personal property thrown in, and "the fair market value of any properties exchanged." A lease of five years or more is taxed on the rent discounted to present value at 6% plus any premium, which matters if your Hawaii asset is a leasehold interest.
What Form P-64B exempts, and what it does not
HRS section 247-3 lists the exempt documents: instruments securing a debt, corrections of a prior deed, transfers between spouses, reciprocal beneficiaries or parent and child for nominal consideration, any document with consideration of $100 or less, deeds completing an agreement of sale already taxed, government-only parties, tax sales, eminent domain, easements, equal-value partitions, divorce decrees, distributions from a testamentary trust, moves into and out of a revocable living trust, statutory mergers, a dissolving limited partnership deeding to a 90% corporate general partner, and transfer on death deeds.
Section 1031 is not on the list, nor is a transfer to or from a qualified intermediary or an exchange accommodation titleholder. The Form P-64B instructions sort the exemptions into those filed directly with the Bureau and those the Department's Technical Section must approve first, in three to ten business days. If the consideration exceeds $100 and no listed exemption fits, the instructions send you back to Form P-64A.
Two practical points follow. Moving a Hawaii rental into your own LLC before a sale is a listed transfer, and if the LLC takes the property subject to a mortgage that debt is consideration above the $100 line; the entity question is covered under exchanging from a personal name into an LLC. A revocable trust transfer is exempt, so title in your living trust can be deeded out to close without a second tax.
Pair the conveyance tax with HARPTA and the federal paperwork
Hawaii collects two different things at a nonresident's closing. The conveyance tax is a tax on the document and is never refunded because an exchange succeeded. HARPTA is withholding against income tax, which a certified exchange can waive; the certificate mechanics are on the Form N-289 page and in the general answer on state withholding at closing.
Federally, the conveyance tax is a transactional item under Reg. section 1.1031(k)-1(g)(7), which lets the qualified intermediary pay "recording or transfer taxes" from exchange proceeds without the funds being treated as received by you. On Form 8824 the instructions reduce boot on line 15 by exchange expenses and add any unused amount to basis on line 18.
A hypothetical: you sell a $1,200,000 Honolulu rental condo to a mainland investor through a qualified intermediary. The buyer cannot claim a homeowner's exemption, so the higher schedule applies at 40 cents per $100, $4,800; an owner-occupant buyer would have produced $3,600 at the general rate. You then buy a $1,200,000 replacement on another island and that seller pays the tax on their deed. Your $4,800 is paid from exchange funds and comes off any boot. Run your own numbers with your CPA, and see the Hawaii 1031 exchange page for the income tax side.
Related questions
Is Hawaii's conveyance tax marginal, like income tax brackets?
No. Each tier's rate applies to the entire consideration once the value reaches that tier, so a $2,000,000 sale on the general schedule pays 50 cents per $100 on all of it, not 30 cents on the first $2,000,000 less a dollar. Check which side of a threshold your price sits before you agree to small price changes.
Do I pay conveyance tax when I buy my replacement property in Hawaii?
Not by statute. The tax is on the grantor, so the seller of your replacement pays it, although if you are an investor buying a condo or house the seller's rate is on the higher schedule. Any contract clause shifting the cost to you is a private allocation, not a tax change.
Does a mortgage the buyer assumes count toward the taxable consideration?
Yes. HRS section 247-2 includes any liens or encumbrances on the property at the time of sale in the consideration, and the P-64A instructions list a release from or assumption of indebtedness as non-cash consideration. The tax is computed on the full price, not on your equity.
Can the qualified intermediary pay the conveyance tax out of my exchange funds?
Yes. Transfer taxes are transactional items the regulations disregard for the safe harbor, so paying them from the escrow does not give you constructive receipt. On Form 8824 the payment reduces boot, and anything left over goes to basis.
Is a transfer into my own LLC before the sale exempt?
Only if the consideration is $100 or less. A contribution of real property to an LLC is a listed transfer, and if the LLC takes the property subject to a mortgage the debt counts as consideration, so the transfer can be taxable at full rates. Transfers into a revocable living trust are exempt.
Sources
Checked against these publications on September 30, 2026. Rules and figures change; confirm the current version with your CPA or attorney before you act. This page is general information, not tax or legal advice.
- HRS section 247-2, Basis and rate of tax
- HRS section 247-3, Exemptions
- Hawaii Department of Taxation, Instructions for Form P-64A, Conveyance Tax Certificate (Rev. 2025)
- Hawaii Department of Taxation, Instructions for Form P-64B, Exemption from Conveyance Tax (Rev. 2025)
- Hawaii Department of Taxation, Conveyance Tax Forms
- Reg. section 1.1031(k)-1, Treatment of deferred exchanges
- IRS, Instructions for Form 8824