Hawaii state withholding stacks at 7.25%. We handle the federal piece end-to-end for sellers, buyers, and Hawaii closing agents, with same-day intake response on every deal.
Hawaii stacks state withholding on top of federal FIRPTA. The default rate is 7.25% of the gross sales price, filed on Form N-288 at or shortly after closing. Hawaii's reduction path is Form N-288B — the state-level analogue to a federal Form 8288-B, filed before closing to reduce withholding based on actual gain rather than the headline rate.
On a $1,000,000 Hawaii foreign-seller closing, the default closing-table withholding is $150,000 federal + $72,500 state = $222,500. Both halves can be reduced or eliminated via the right certificates filed before the deed records.
FIRPTA is federal — every Form 8288, 8288-A, and 8288-B routes to the IRS Ogden Service Center regardless of property location. We coordinate with Hawaii title companies, closing attorneys, and foreign sellers across:
Yes. Hawaii requires 7.25% withholding on nonresident-seller real-property sales, filed on Form N-288, on top of the federal FIRPTA 15%. The state-level reduction is Form N-288B — analogous to a federal Form 8288-B.
Yes. The closing-table Form N-288 withholding is a deposit against the seller's final Hawaii liability on the gain — the seller files a nonresident return in Hawaii to reconcile and recover any over-withholding (or owe additional tax if the closing-table amount was too low).
Yes. FIRPTA is a federal tax regime; the IRS Ogden Service Center processes every Form 8288, 8288-A, and 8288-B regardless of the property's state. We coordinate with Hawaii title companies and closing attorneys nationwide via email, secure file upload, and our intake at firptaincometaxwithholding.com/#intake. Same-day response on every intake.
Same-day response. No fee to your title company. No surprises at closing.