![]() The amount with a qualifying buyer would be $54,000 (without $66,000). Let’s take a home selling for $6 million. As the scale increases, it often makes sense to reduce the home price by just $1000 to save more than the tax scaled amount. This would mean that the tax on a $599,000 home would be $599 with a qualifying buyer. When a sale is under $600,000 the rate is 10 cents per hundred if the buyer qualifies for a homeowner’s exemption (not all states are homestead states, so ask your agent if this is not clear). Some escrow companies have a calculator that estimates the amount due but because it’s so complicated, it may be best to rely on an astute REALTOR® to save you money. The sales amount must also be considered. For this reason, our standard contract specifies that a buyer must inform the seller if their intended use changes.Īs mentioned, this is only the first part of this tax equation. Conveyance taxes are a seller’s cost and yes, you read correctly, the seller’s tax is partially based on the buyer’s intended use. This means all vacant land transfers and any non-owner-occupied homes are taxed at a higher rate. When a buyer will not qualify for a homeowner’s exemption, the tax is higher. No surprise there, right? Not only are taxes based on the sales amount, but there is also a surcharge related to the buyer’s intended use. The only difference is that the Hawaii tax can be extremely confusing. Of such actual and full consideration provided that in the case of a lease or sublease, this chapter shall apply only to a lease or sublease whose full unexpired term is for a period of five years or more, and in those cases, including (where appropriate) those cases where the lease has been extended or amended, the tax in this chapter shall be based on the cash value of the lease rentals discounted to present day value and capitalized at the rate of six per cent, plus the actual and full consideration paid or to be paid for any and all improvements, if any, that shall include on-site as well as off-site improvements, applicable to the leased premises and provided further that the tax imposed for each transaction shall be not less than $1.Buying Advice And Yet an Even More Confusing Tax!Įvery state levies a transfer tax when real property (land or homes) sells. (G) One dollar and twenty-five cents per $100 for properties with a value of $10,000,000 or greater, (F) One dollar and ten cents per $100 for properties with a value of at least $6,000,000, but less than $10,000,000 and (E) Eighty-five cents per $100 for properties with a value of at least $4,000,000, but less than $6,000,000 (D) Sixty cents per $100 for properties with a value of at least $2,000,000, but less than $4,000,000 (C) Forty cents per $100 for properties with a value of at least $1,000,000, but less than $2,000,000 (B) Twenty-five cents per $100 for properties with a value of at least $600,000, but less than $1,000,000 (A) Fifteen cents per $100 for properties with a value of less than $600,000 (2) For the sale of a condominium or single family residence for which the purchaser is ineligible for a county homeowner's exemption on property tax: (G) One dollar per $100 for properties with a value of $10,000,000 or greater and (F) Ninety cents per $100 for properties with a value of at least $6,000,000, but less than $10,000,000 and (E) Seventy cents per $100 for properties with a value of at least $4,000,000, but less than $6,000,000 ![]() (D) Fifty cents per $100 for properties with a value of at least $2,000,000, but less than $4,000,000 (C) Thirty cents per $100 for properties with a value of at least $1,000,000, but less than $2,000,000 (B) Twenty cents per $100 for properties with a value of at least $600,000, but less than $1,000,000 (A) Ten cents per $100 for properties with a value of less than $600,000 ![]() The tax imposed by section 247-1 shall be based on the actual and full consideration (whether cash or otherwise, including any promise, act, forbearance, property interest, value, gain, advantage, benefit, or profit), paid or to be paid for all transfers or conveyance of realty or any interest therein, that shall include any liens or encumbrances thereon at the time of sale, lease, sublease, assignment, transfer, or conveyance, and shall be at the following rates: HI Rev Stat § 247-2 (2011 through Reg Sess) What's This?
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