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Buying Advice

What Is HARPTA? The Hawaii Withholding Law Every Non-Resident Seller Needs to Know

If you’re selling property on Kauai or anywhere in Hawaii as a non-resident, there’s a law you need to know about before you get to the closing table. It’s called HARPTA (Hawaii Real Property Tax Act), and despite the name, it’s not a tax. It’s a 7.25% withholding on your total sales price that goes straight to the State of Hawaii at closing.

That’s right. Not your profit. Your total sales price.

In this video, I break down exactly how HARPTA works, what the escrow process looks like, why the state typically withholds more than you actually owe, and how to get your money back after closing. Spoiler: it takes a while.

What you’ll learn: ✅ What HARPTA is and what it isn’t ✅ Who it applies to and how residency is determined ✅ What happens to that money at closing ✅ How and when you can recover the overage

There are also situations where HARPTA doesn’t apply, and I’ll be covering that in an upcoming video. Look for that soon! 

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Aloha!  

Lynda Gill RS Lic. 63088  

Hawai’i Life Real Estate Brokers 808.346.0056  

LyndaGill@HawaiiLife.com  

Posted on in Buying Advice, Education, Hawaii, Intelligence, Kauai, Selling Advice, Tax, Tips, , , , , , , , ,

Lynda Gill
About the Author

Lynda Gill

Lynda Gill is a Realtor Salesperson with Hawai'i Life. I have over 21 years of experience as a top-producing real estate agent on Kauai, where I’ve lived since 2004. I specialize in residential, relocation, and resort property sales in Poipu Beach, Lawai, Omao and Kalaheo, on the island’s South Side. Over the course of my career, I’m proud to have earned accolades and designations, including being recognized as a top performer by Hawaii Business Magazine. But what really drives me is helping my clients with one of the most significant events in their lives. There is nothing quite as satisfying as helping clients achieve their financial goals or seeing their eyes light up when the right property comes along. You can email me at lyndagill@hawaiilife.com or via phone at (808) 346-0056.

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