HARPTA
By the Numbers
Typical Transaction
(simplified example)
800
Sales price
You sell a condo for $800,000 in 2021.
(600)
PRICE + improvements
You paid $500,000 for the condo in 2010. You had remodeling costs of $100,000 resulting in a total ‘basis’ of $600,000.
200
capital gain
You have a capital gain of $200,000.
58
HARPTA WITHHOLDING
$58,000 or 7.25% of the $800,000 sales price is withheld from your closing proceeds by the state of Hawaii.
(15)
ACTUAL hawaii capital gains tax
$15,000 or 7.25% of the $200,000 capital gain is the amount which will actually be due to the the state of Hawaii.
43
amount refunded!
$43,000 represents an almost 300% over withholding. A very common situation.