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Selling your Maui home? What about the conveyance tax in Maui County?

By
Real Estate Agent with Hawai'i Life Real Estate Brokers HRE# 58089 - RS

Selling your Maui home?  What about the conveyance tax in Maui County?

When it comes to selling a home on Maui you'll be expected to pay the conveyance tax upon the close of escrow.  This is a cost paid by the seller and the amount is determined by a couple of things.  The sale price is one of the factors that determine the rate you'll pay.  Whether the buyer intends to reside in the home is the other factor.

The tax applies to single family homes and condos.  Since vacant land cannot be occupied, this system is not applicable and it would be taxed per Scale #1.  Likewise for commercial properties.

Sale Price - It's a tiered scale which favors the lower priced properties.  The higher the price, the higher the rate of tax.  Here's how it breaks down in the case where the buyer will qualify for the homeowner/occupant exemption, or Scale #1:

  • sells for $0 to $600,000 - you pay $0.10 per $100
  • sells for $600,000 to $999,999.00 - you pay $0.20 per $100
  • sells for $1,000,000 to $1,999,999.00 - you pay $0.30 per $100
  • sells for $2,000,000 to $3,999,999.00 - you pay $0.50 per $100
  • sells for $4,000,000 to $5,999,999.00 - you pay $0.70 per $100
  • sells for $6,000,000 to $9,999,999.00 - you pay $0.90 per $100
  • sells for $10,000,000 or more - you pay $1.00 per $100
Homeowner Exemption - If the buyer does NOT qualify for the homeowner exemption, the seller will pay a higher rate of conveyance tax.  This can add up to a lot on some luxury homes and it's something to consider when negotiating your purchase contract.  Here's the break down for Scale #2:
  • sells for $0 to $600,000 - you pay $0.15 per $100
  • sells for $600,000 to $999,999.00 - you pay $0.25 per $100
  • sells for $1,000,000 to $1,999,999.00 - you pay $0.40 per $100
  • sells for $2,000,000 to $3,999,999.00 - you pay $0.60 per $100
  • sells for $4,000,000 to $5,999,999.00 - you pay $0.85 per $100
  • sells for $6,000,000 to $9,999,999.00 - you pay $1.10 per $100
  • sells for $10,000,000 or more - you pay $1.25 per $100
 
selling your Maui home - get it sold!
 
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Comments(5)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

HI is worth the taxes :)

Jan 17, 2013 12:33 PM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Hi Laura!  Actually we have comparatively low taxes here in Hawaii.  And yes, it's worth it!  Thanks for being the first commenter!

Jan 17, 2013 12:42 PM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

I have to agree HI is worth the taxes but it looks like a whole lot of money. Anything would look like a whole lot of money to us here.

Jan 17, 2013 12:56 PM
Roy Kelley
Retired - Gaithersburg, MD

Very good information for prospective home sellers.

Have a great day and an outstanding weekend.

Jan 17, 2013 11:50 PM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Great information, as usual, Georgie! Knowing about your local tax laws is vital!

Jan 18, 2013 07:02 AM