Escrow & Title
Hawaii also imposes a state withholding requirement on sales by nonresidents. The Hawaii nonresident withholding rate is generally:
A3.5% of the net gain
B7.25% of the sales price✓ Correct
C5% of the sales price
D10% of the gross proceeds
Explanation
Hawaii requires buyers to withhold 7.25% of the sales price when purchasing property from a nonresident seller. This amount is remitted to the Hawaii Department of Taxation.
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