If you are a non-resident of Hawaii, you will need to pay withholding of HARPTA on the sale price of your home. The State of Hawaii Department of Taxation has announced that the rate will increase from 5% to 7.25% of the sales price for the withholding of tax on the sale of Hawaii properties by non-Hawaii resident persons/entities on or after September 15, 2018. This withholding is commonly known as “HARPTA”. Its not a tax on the sale but the amount withheld from the seller’s proceeds from which a possibly tax due the State of Hawaii on a gain is paid. And if you are foreign buyer, you will also need to pay FIRTPA witholding when you sold your house. The increase was anticipated since the Federal government increased “FIRPTA” (withholding for foreign sellers) from 10% to 15% effective for closings on or after February 16, 2016.