The State of Hawaii announced June 29th that they were changing the rate on Withholding of Hawaii Real Property after September 15, 2018. Section 235-68, Hawaii Revised Statutes, requires every transferee or buyer of Hawaii real property to withhold and pay to the Department of Taxation a percentage of the amount realized on the disposition of the real property, unless the disposition is exempt from withholding. This is an amendment to 235-68 as it changes the withholding rate from 5% to 7.25%.

A very cursory explanation of some of the exemptions include selling at a loss or the seller is a resident of Hawaii.

Click here for a PDF of the announcement from the State of Hawaii.

Click Here to view the State of Hawaii N-289 Form for Exemptions from withholding.

Written by Rick Oliver on August 15, 2018
Posted in: Real Estate | Tags: taxes