Have questions ?

General questions

• HOW MUCH IS OWED IN HAWAII CAPITAL GAINS TAX?

  The Hawaii capital gains tax on real estate is 7.25%. This applies to all four factors of gain, refer below for a discussion of the four factors. The difference between how much is withheld and how much is owed is the amount of your refund. The state of Hawaii will keep your money if you do not submit the appropriate refund requests.

• IS HAWAII TAX LAW FOR THE SALE OF A PERSONAL RESIDENCE SIMILAR TO THE FEDERAL LAW ?

  Yes. This federal law allows an owner to exclude up to $250,000 of gain (single) or up to $500,000 of gain (married) providing they have owned and occupied property for at least two out of the past five years. Lower exclusions may be allowed under certain circumstances if the owner-occupancy time frame has been less than two years.

• HOW MUCH IS OWED IN HAWAII CAPITAL GAINS TAX ?

  The Hawaii capital gains tax on real estate is 7.25%. This applies to all four factors of gain, refer below for a discussion of the four factors. The difference between how much is withheld and how much is owed is the amount of your refund. The state of Hawaii will keep your money if you do not submit the appropriate refund requests.

• NO TAXABLE GAIN ?

  No taxable gain applies when there is a loss on the sale rather than a gain. No taxable gain may also involve transfers of property incident to a divorce, as a gift, or as an inheritance.

• IS THE TAX RATE DIFFERENT FOR WHOLESALERS ?

  Yes. A wholesale rate of 0.5% applies to transactions that involve sales to parties who do not end-users. For instance, a beverage company selling cases of soft drink to a convenience store must pay 0.5% of the transaction as GET (General Excise Tax). The convenience store then charges an additional (regular retail rate) tax of 4.00% (Maui) to the person who buys and drinks the beverage.

• CAN CONTRACTORS CHARGE FULL RETAIL RATES TO END USERS EXEMPT AMOUNTS PAID TO THEIR SUBCONTRACTORS ?

  Yes, but general contractors are required to provide the name and GET registration numbers of the subcontractors in order to take these exemptions. It should be noted that the subcontractors themselves owe 4.0% (Maui) on the amounts they collect from the general contractors.