Conveyance Tax - When you sell your Oahu Property
In Hawaii, it is typical based on the standard Purchase Contract released by the Hawaii Association of Realtors that the seller in a residential transaction pays the conveyance tax or "Sales" tax on that sale. The tax rates were most recently adjusted in 2009, and have a two tiered residential tax rate depending on whether the buyer is an owner occupant or not. The owner occupant rate is lower than the non-owner occupant rate, effectively incentivizing sellers to choose the owner occupant buyer over the investor, with all other things being equal. There is also a progressive increase in Oahu Real Property conveyance tax rates as the sales price increases.