Hawaii Increases Withholding on Sale of Property by Nonresidents

Hawaii increases the withholding rate for sales of Hawaii real property by nonresidents to 7.75%. The increase applies to sales occurring on or after September 15, 2018.

Buyer Withholding

Buyers of Hawaii real property from nonresidents will have to:

  • withhold at the new rate; and
  • pay that amount to the Department of Taxation.

Prior Rate

The withholding rate for sales before September 15, 2018, is 5%.

Act. 122 (S.B. 508), Laws 2018, applicable as noted

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AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup