Hawaii's conveyance tax (transfer tax) is:
Correct Answer
B) A tiered tax based on property value, ranging from $0.15 to $1.25 per $100, with higher rates for properties over $2 million and non-owner-occupied properties
Under HRS §247, Hawaii's conveyance tax is progressive, with rates increasing for higher-value properties. Base rates range from $0.15 per $100 for properties under $600,000 up to $1.25 per $100 for properties over $10 million. Since 2021, additional surcharge rates apply to non-owner-occupied residential properties valued over $2 million, resulting in even higher effective rates for investment properties.
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Related Topics & Key Terms
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Related Concepts
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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