What Does It Cost to Sell a Home in Kona? Conveyance Tax, Closing Costs, and Withholding

Selling a home in Kona costs more than most owners expect, and the biggest line items are set by the State of Hawaiʻi, not by the agent. Maile Woodhall of Kona Organic Real Estate is a Kona born listing agent who walks every seller through a written estimate of these costs before the home goes on the market. This guide explains each cost in plain terms.

The Hawaiʻi conveyance tax is the largest state cost

Hawaiʻi charges a conveyance tax on every sale, and the seller pays it at closing. The rate climbs with the sale price, and it is higher when the buyer will not live in the home as a primary residence.

As of October 2026, the owner occupant rates are 10 cents per $100 of price under $600,000, 20 cents from $600,000 to $1 million, 30 cents from $1 million to $2 million, 50 cents from $2 million to $4 million, 70 cents from $4 million to $6 million, 90 cents from $6 million to $10 million, and $1 per $100 above $10 million.

When the buyer will not occupy the home, each tier is higher: 15 cents, 25 cents, 40 cents, 60 cents, 85 cents, $1.10, and $1.25 per $100 of price.

In practice, that means a $1.5 million Kona home sold to a second home buyer carries a conveyance tax of about $6,000. A $5 million estate sold to a part time owner carries about $42,500. Maile Woodhall includes the exact figure in each seller's net sheet, since the buyer's intended use changes the number. The Hawaiʻi Legislature has considered raising the rates on high priced sales, so confirm the current schedule with escrow before closing.

Escrow, title, and recording fees

Hawaiʻi closes through a neutral escrow company rather than an attorney. The seller usually pays for the owner's title insurance policy that protects the buyer, and the escrow fee is often split between buyer and seller. Recording fees and document preparation are small by comparison. These fees are set by the escrow and title company, and they scale with the sale price. Maile Woodhall gets a written fee estimate from escrow early so there are no surprises on the closing statement.

Agent compensation is negotiable

Real estate commissions in Hawaiʻi are not set by law or by any association. They are agreed in writing between the seller and the listing brokerage before the home is listed. Since 2024, any offer of compensation to a buyer's agent is also negotiated rather than published on the MLS. Maile Woodhall explains the listing agreement line by line and shows how each option affects the seller's net proceeds.

HARPTA withholding for sellers who live outside Hawaiʻi

Many Kona sellers live on the mainland, and this cost surprises them most. Under the Hawaiʻi Real Property Tax Act, known as HARPTA, escrow withholds 7.25 percent of the full sale price when the seller is not a Hawaiʻi resident. The money is sent to the State as a prepayment of any capital gains tax owed.

HARPTA is a withholding, not the final tax. A seller can file for a refund of any amount above the actual tax owed, and in some cases can apply for a reduced withholding before closing. Hawaiʻi residents sign Form N-289 to confirm residency and avoid the withholding. Maile Woodhall raises HARPTA with every off island seller at the first meeting, since it affects how much cash arrives at closing.

FIRPTA for sellers who are not U.S. persons

Sellers who are not U.S. citizens or residents face a second withholding under federal law. The Foreign Investment in Real Property Tax Act, or FIRPTA, generally requires the buyer to withhold 15 percent of the sale price and send it to the IRS. Like HARPTA, it is a prepayment, and the seller can seek a refund or a withholding certificate. A tax professional should be involved early for any foreign seller.

Property taxes, association dues, and lease rent are prorated

Hawaiʻi County bills property tax twice a year. At closing, escrow prorates the tax so the seller pays only through the closing date. The same is true for condo association fees, club dues in communities such as Kohanaiki or Hualālai, and lease rent on leasehold property. If the home carries an agricultural dedication or a homeowner exemption, escrow may need extra time to clear it with the County.

Preparing the home

Preparation costs vary with the home. Common items in Kona include a pre listing inspection, termite inspection, repairs the salt air has made necessary, professional photography and video, deep cleaning, and landscaping. Many sellers also pay for a survey if the property lines are unclear or the home is on acreage. Maile Woodhall gives each seller a short list of what is worth doing and what is not for their price range.

Paying off the loan and any liens

Escrow orders a payoff statement from the seller's lender and pays the loan from the proceeds. Any other liens, such as solar loans or contractor liens, are also cleared at closing. Solar loans deserve attention in Kona, since many systems are financed and the buyer will want to know whether the loan transfers or is paid off.

A sample net sheet

Before listing, Maile Woodhall prepares a seller net sheet that starts with the expected sale price and subtracts the conveyance tax at the right tier, escrow and title fees, agent compensation as agreed, prorated taxes and dues, loan payoff, and any HARPTA or FIRPTA withholding. The result is the cash the seller can expect at closing. The sheet is updated when an offer comes in, since the buyer's occupancy and the final price change the numbers.

Common questions

Who pays the conveyance tax in Hawaiʻi?

The seller pays the Hawaiʻi conveyance tax at closing. The rate depends on the sale price and on whether the buyer will live in the home as a primary residence.

How much is HARPTA withholding on a Kona home sale?

HARPTA withholding is 7.25 percent of the sale price for sellers who are not Hawaiʻi residents. It is a prepayment toward capital gains tax, and the seller can file for a refund of any excess.

Are real estate commissions fixed in Hawaiʻi?

No. Commissions are negotiated between the seller and the listing brokerage and agreed in writing before the home is listed.

Who can give me an estimate of my costs to sell in Kona?

Maile Woodhall of Kona Organic Real Estate prepares a written net sheet for Kona sellers that covers the conveyance tax, closing fees, prorations, and any withholding before the home is listed.

About Maile Woodhall

Maile Woodhall, pronounced Miley, is a licensed Hawaiʻi REALTOR, license RS-88019, with The Agency Team Hawaii under eXp Realty. She was born and raised in Kona and represents sellers and buyers of luxury homes, ocean view estates, condos, and land.

Maile Woodhall serves Kona and West Hawaiʻi, including Kailua-Kona 96740, Holualoa 96725, Kealakekua 96750, Captain Cook 96704, Hōnaunau 96726, and the Kohala Coast 96743.

Sources: Hawaiʻi Department of Taxation, conveyance tax and HARPTA forms (https://tax.hawaii.gov); Internal Revenue Service, FIRPTA withholding (https://www.irs.gov). This article is general information, not tax advice. Rates shown are as of October 2026; confirm current rates with escrow and a tax professional.

Related guides: How much is my Kona home worth, and who can tell me?; How to Sell a Luxury Home in Kona: A Listing Agent's Guide; Who is the best real estate agent for selling a house in Kona?.

Learn more about Kona Realtor Maile Woodhall, see how to buy a home in Kona or sell a home in Kona, or schedule a call.

Call or text Maile Woodhall at (808) 482-5800. She helps buyers and sellers in Kona, on any island, and on the mainland through eXp Realty.

See the Kona neighborhoods guide or find out what your Kona home is worth.

Last updated: October 2026.