Kauai Real Estate Conveyance Taxes Explained

 

What is Conveyance Tax?

Kauai real estate conveyance taxes are governed by the State of Hawaii Department of Taxation, which defines Conveyance Tax as, “… tax imposed on all transfers of ownership or interest in real property through deeds, leases, subleases, assignments of lease, agreements of sale, assignments of agreements of sale, instruments, writings, or other documents, unless the transfer is specifically exempted. The conveyance tax is imposed regardless of whether a document is recorded or not.”
 

Who Pays Kauai Real Estate Conveyance Taxes?

Kauai is the same as all other islands in Hawaii, where it is customary for the Seller to pay the conveyance taxes of a qualifying transfer of real estate. The conveyance tax must be paid within 90 days of the transfer, and the transfer cannot be recorded until the fully executed Conveyance Tax Certificate has been filed and the tax paid.
 

How is the Amount of Tax Owed Determined?

The amount of Kauai real estate conveyance taxes owed is determined by the State of Hawaii Department of Taxation, which states that, except for transfers of a condominium or single family residence for which the purchaser is ineligible for a county homeowner’s exemption on property tax, the tax owed is calculated by multiplying the actual and full consideration by the following rates:
 
  • Ten cents ($.10) per $100 of the actual and full consideration for properties with a value of less than $600,000
  • Twenty cents ($.20) per $100 of the actual and full consideration for properties with a value of at least $600,000, but less than $1,000,000
  • Thirty cents ($.30) per $100 of the actual and full consideration for properties with a value of at least $1,000,000, but less than $2,000,000
  • Fifty cents ($.50) per $100 of the actual and full consideration for properties with a value of at least $2,000,000, but less than $4,000,000
  • Seventy cents ($.70) per $100 of the actual and full consideration for properties with a value of at least $4,000,000, but less than $6,000,000
  • Ninety cents ($.90) per $100 of the actual and full consideration for properties with a value of at least $6,000,000 but less than $10,000,000
  • One dollar ($1.00) per $100 of the actual and full consideration for properties with a value of $10,000,000 or greater
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, the tax owed is calculated by multiplying the actual and full consideration by the following rates:
 
  • Fifteen cents ($.15) per $100 of the actual and full consideration for properties with a value of less than $600,000
  • Twenty-five cents ($.25) per $100 of the actual and full consid- eration for properties with a value of at least $600,000, but less than $1,000,000
  • Forty cents ($.40) per $100 of the actual and full consideration for properties with a value of at least $1,000,000, but less than $2,000,000
  • Sixty cents ($.60) per $100 of the actual and full consideration for properties with a value of at least $2,000,000, but less than $4,000,000
  • Eighty-five cents ($.85) per $100 of the actual and full consider- ation for properties with a value of at least $4,000,000, but less than $6,000,000
  • One dollar and ten cents ($1.10) per $100 of the actual and full consideration for properties with a value of at least $6,000,000 but less than $10,000,000
  • One dollar and twenty-five cents ($1.25) per $100 of the actual and full consideration for properties with a value of $10,000,000 or greater
For more information regarding Kauai real estate conveyance taxes, visit the State of Hawaii Department of Taxation.
 
 
 

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