Conveyance Tax: What is this?

Unlike your typical property tax which is paid to the State on a semi-annual basis, conveyance tax is paid on actual and full consideration for the transfer of realty, including leases and subleases, a tax of 10¢ per $100 is imposed for conveyances under $600,000; 20¢ per $100 for conveyances between $600,000 and $1 million; and 30¢ per $100 for conveyances in excess of $1 million. 

If the property is transferred to a person who will not use the property as their primary residence (and does not qualify for a homeowner exemption), your conveyance tax is slightly higher:  15¢ per $100 for properties valued up to $600,000; 25¢ per $100 for properties valued between $600,000 and $1 million; and 35¢ per $100 for properties valued at over $1 million. 

In the sale of residential property the seller is usually responsible for paying the conveyance tax.  Minimum tax on each transaction is $1.00. Certain exemptions are allowed.  Here is a conveyance tax exemption form which may explain why a property transfer is exempt.

About the Author

Brandon Lau grew up in Kailua and currently resides in Honolulu with his wife Andee and children Caylah, Elijah, and David. His eighteen years in real estate led him to become a Partner at ChaneyBrooks Choice Advisors. Over the past 10 years he has developed the team and systems that has created a high level of service and value for his clients.

What differentiates Brandon and his team is his consultative approach to real estate. He advises clients with relevant data and expert insight to help them make the best choices in real estate. Good choices in planning for long term dispositions, negotiating for the best price or knowing when not to pursue an investment are ways his consultative services will give you an advantage in the marketplace. His bottom line is providing service with the utmost integrity and expertise.