By Benjamin Finnerty (S), REALTOR® (RS-83812) with Keller Williams Realty Maui · Kīhei, Maui · 808-481-9748

Quick Answer: Selling a Maui home in 2026 can trigger three taxes at closing: Hawaiʻi’s seller-paid conveyance tax (0.10% to 1.25% of the price), HARPTA withholding of 7.25% when the seller isn’t a Hawaiʻi resident, and FIRPTA withholding of 15% when the seller is a foreign person. A 2026 overhaul bill died in a Senate committee in April, so current rates apply.

I’m Benjamin Finnerty, a REALTOR® in Kīhei with Keller Williams Realty Maui, and when I sit down with a seller, these three items are often the difference between the price on the contract and the cash that actually lands in their account. Below I break down how each one works, with examples at today’s Maui prices, so you can plan your sale with clear numbers.

How Much Is the Hawaiʻi Conveyance Tax When Selling a Maui Home?

The Hawaiʻi conveyance tax runs from 0.10% to 1.25% of the sale price, it’s generally paid by the seller, and the rate depends on the price and on whether the buyer is eligible for a county homeowner’s exemption. It’s a state tax on the transfer of real property, due no later than 90 days after the transaction and filed on Form P-64A. In practice, escrow usually handles it at closing.

There are two rate schedules. The higher one (Column B) applies to a condo or single-family home when the buyer isn’t eligible for a county homeowner’s exemption, which usually means a second-home buyer or investor.

Sale price	Rate if buyer is eligible for homeowner exemption (A)	Rate if buyer is not eligible (B)
Under $600,000	$0.10 per $100 (0.10%)	$0.15 per $100 (0.15%)
$600,000 to under $1M	0.20%	0.25%
$1M to under $2M	0.30%	0.40%
$2M to under $4M	0.50%	0.60%
$4M to under $6M	0.70%	0.85%
$6M to under $10M	0.90%	1.10%
$10M and up	1.00%	1.25%

Source: Hawaiʻi Department of Taxation, Form P-64A instructions.

Does the Conveyance Tax Rate Apply to the Whole Sale Price?

Yes. The rate applies to the entire sale price, not just the amount above each threshold, so crossing a bracket line can make a real difference. Here’s what that looks like at Maui prices:

• $565,000 condo (close to August 2026’s countywide condo median of $564,950): $565 if the buyer will live there, $847.50 if not.
• $1,225,000 home (the countywide single-family median for January through August 2026): $3,675 to an owner-occupant buyer, $4,900 to an investor buyer.
• $1,990,000 home: $5,970 at 0.30%. At $2,000,000, the rate jumps to 0.50%, or $10,000.

What Happened to the 2026 Hawaiʻi Conveyance Tax Bill?

It died. House Bill 2049 passed the House on March 10, 2026, but the Senate Ways and Means Committee deferred it on April 6, 2026, so it didn’t become law and the current rates above remain in effect.

The bill would have changed the conveyance tax to a marginal system, similar to income tax brackets, where each rate applies only to the part of the price within that bracket. Hawaiʻi Public Radio reported the plan could have sent $40 million to $60 million a year to the Department of Hawaiian Home Lands, and that a $1.2 million home would have seen its tax drop from $3,600 to $3,000. Conveyance tax changes could come up again in a future session, so it’s worth watching if you plan to sell a higher-priced property.

What Is HARPTA, and Does It Apply When I Sell My Maui Home?

HARPTA (the Hawaiʻi Real Property Tax Act) applies when the seller is not a Hawaiʻi resident, and it requires the buyer to withhold 7.25% of the amount realized. That covers many Maui second-home owners and investors.

• The buyer withholds 7.25% of the amount realized (generally the sale price) and sends it to the Hawaiʻi Department of Taxation by the 20th day after the transfer, using Form N-288.
• It’s a prepayment, not the final tax. When you file your Hawaiʻi income tax return, the withholding is credited against what you owe. If too much was withheld, you get a refund.
• Example: On a $1,225,000 sale, HARPTA withholding would be $88,812.50. That’s a big chunk of cash held back until you file.

Can I Avoid or Reduce HARPTA Withholding?

Sometimes. A seller can give the buyer Form N-289 to certify that withholding isn’t required if the seller is a Hawaiʻi resident, the sale qualifies for a nonrecognition provision (such as a 1031 exchange), or the seller used the property as a principal residence for the prior year and the amount realized is $300,000 or less.

If your actual tax will be much lower than 7.25%, for example because you have little or no gain, you can apply to the Department of Taxation for a withholding certificate (Form N-288B). Start early, since this takes time.

What Is FIRPTA, and How Is It Different From HARPTA?

FIRPTA is the federal version, and it applies when the seller is a foreign person. According to the IRS, the buyer generally withholds 15% of the amount realized. There’s an exception when the buyer will use the property as a residence and the price is $300,000 or less, and reduced withholding can apply up to $1 million in some cases. A foreign seller of a Maui property may face both FIRPTA and HARPTA on the same sale.

My Take: What I’m Telling Maui Sellers

First, look at your price against the conveyance tax brackets before you set your list price. The jump from $5,970 at $1,990,000 to $10,000 at $2,000,000 is a good example of why a bracket line deserves a second look when you’re pricing near it.

Second, if you live off-island, plan for HARPTA from day one. On a $1,225,000 sale, $88,812.50 being held back can affect your next purchase or your moving budget, so I suggest talking with a CPA about Form N-289 or a Form N-288B withholding certificate well before you list, not the week before closing.

Third, ask for a net-proceeds estimate that includes these items alongside commissions and escrow costs. It’s the clearest way to see what you’ll actually walk away with.

This is general information, not tax or legal advice. Please confirm your situation with a CPA or Hawaiʻi attorney.

Frequently Asked Questions

Who pays conveyance tax in Hawaiʻi, the buyer or seller?

The seller generally pays it. The tax is due no later than 90 days after the transaction and is usually handled through escrow.

Do Hawaiʻi residents have to deal with HARPTA?

No. Resident sellers provide Form N-289 certifying their resident status, and no withholding is required.

Is HARPTA withholding the same as the tax I owe?

No. It’s a prepayment. Your actual Hawaiʻi tax is figured on your income tax return, and the withholding is credited against it.

Did Hawaiʻi change the conveyance tax in 2026?

No. HB 2049 was deferred in the Senate Ways and Means Committee on April 6, 2026, so the existing rate schedule remains in place.

For more on the numbers behind these examples, see my breakdown of Maui’s August 2026 sales numbers, and if you’re weighing a sale against holding, my guide to Maui’s new property tax rates covers the ongoing cost side.

Ask Benjamin

If you’re thinking about selling, I’m happy to walk you through a net-proceeds estimate and connect you with tax professionals who handle Hawaiʻi sales, especially if you live off-island. I’m Benjamin Finnerty, and you can call or text me at 808-481-9748 or email benjaminfinnerty@gmail.com anytime, no pressure.

Sources: Hawaiʻi Department of Taxation (Form P-64A instructions, Form N-288 instructions, Tax Facts on HARPTA); Hawaiʻi Revised Statutes Chapter 247; IRS FIRPTA withholding guidance; Hawaiʻi Public Radio (April 2, 2026); Hawaiʻi State Legislature bill history for HB 2049 (2026); REALTORS® Association of Maui August 2026 statistics.