State Summary

Tax Collection Method: Deeds
Primary Bidding Type: Premium
Redemption Period: 1 year
Redemption Interest Rate/Flat Penalty: 12% simple interest per annum

The following information summarizes the life cycle, requirements, and administering of tax liens in the state of Hawaii. Please read this information carefully. There are state statutes that pertain to all four Hawaii counties such as the redemption period and the redemption interest rate, but be aware that there are subtle differences between the counties as well.

Is Hawaii a tax lien or a tax deed state?
Hawaii is a "redeemable" tax deed state. Investors receive interest on purchased tax deeds if they are redeemed by the property owner within the redemption period.

What is the name of the county office whom typically collects property taxes in Hawaii?
The Real Property Tax Office.

When are property taxes due in the state of Hawaii?
Property tax payments for Hawaii counties are due in two installments. The first installment is due August 20 and the second installment is due February 20 the following year.

When do property taxes become delinquent in the state of Hawaii?
Property taxes become delinquent one day after the two due dates, or August 21 and February 21 (the following year). Up to a 10% penalty may be assessed on delinquent taxes. This penalty is determined by the director of taxation. Additionally, an 8% per annum (0.67% per month) interest rate accrues on delinquent taxes.

What is the name of the county office whom typically conducts tax deed sales in Hawaii?
The Real Property Tax Office.

When do the Hawaii counties hold their tax deed sales?
Hawaii counties hold one tax deed sale in June and another tax deed sale in November or December.

What are the registration requirements for the Hawaii tax deed sales?
The registration requirements vary by county.

What is the bidding type used at Hawaii tax deed sales?
All four counties hold premium bidding public outcry auctions.

What forms of payment are generally accepted at Hawaii tax deed sales?
Cash or certified funds.

What are the general terms of payment for tax deeds purchased at Hawaii tax deed sales?
Full payment is due the day of the sale.

What is the maximum return (interest rate and/or flat penalty rate) investors earn while they hold the redeemable tax deed?
In order to redeem a property, property owners must pay an interest rate of 12% per annum, or 1% per month or fraction of month.

Is the interest rate applied only to the minimum bid amount for each property, or is this interest rate also assessed on the premium or "overbid" paid for the property during the auction?
The 12% interest is applied to the total purchase amount, so the "overbid" also earns 12% interest if the property is redeemed.

What is the redemption period for redeemable tax deeds in Hawaii?
One year, starting the same day that the tax deed is sold. The one-year redemption period may be extended if the tax deed is not recorded within 60 days of the sale.

Are tax deeds offered "over-the-counter" in Hawaii?
No.

What is the name of the county office whom typically determines the values of properties on a annual basis?
Real Property Tax Office.

Do the Hawaii counties feature a Geographic Information System (GIS) application on their Web sites?
Yes. GIS applications can be very useful for tax lien and tax deed investors because most of them feature aerial photos (some with zooming options), and a lot of them are integrated with tax bills and assessor/appraisal records, which simplifies the task of researching properties online.

For more information on the statutes regarding property tax collection, tax liens, and tax deeds in the state of Hawaii, refer to Hawaii Revised Statutes.

Hawaii County Reference