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.
Buyers of Hawaii real property from nonresidents will have to:
- withhold at the new rate; and
- pay that amount to the Department of Taxation.
The withholding rate for sales before September 15, 2018, is 5%.
Act. 122 (S.B. 508), Laws 2018, applicable as noted