Dateline: Kona Coast, Hawaiʻi Island — October 26, 2026
Luxury real estate on the Kona Coast, the west side of Hawaiʻi Island around Kailua-Kona, includes oceanfront and golf estates, custom homesites and private club communities. Buyers here check a few things that mainland buyers don't. First, the property's lava-flow hazard zone: Kailua-Kona is on the flanks of Hualālai, which the state's hazard data place in Zone 4 on a 1-to-9 scale. Second, Hawaiʻi County's property-tax class. Third, the state conveyance tax, which reaches $1.25 per $100 of the full price on a $10 million-plus home when the buyer can't claim a homeowner exemption. Fourth, HARPTA withholding of 7.25% when buying from a nonresident seller. And if you plan to rent the home, check what the County allows before you buy.
At a glance
| Check | What to know | Source |
|---|---|---|
| Lava-flow hazard zone | 9 zones; Zone 1 is the most hazardous. All of Hualālai is Zone 4. Zones are relative and apply at the neighborhood level, not parcel by parcel | USGS Hawaiian Volcano Observatory; Hawaii Statewide GIS Program |
| State conveyance tax | Paid generally by the seller. The rate applies to the full price and rises with value. Higher rates apply when the buyer of a condo or house isn't eligible for a county homeowner exemption | Hawaii DoTax, Form P-64A instructions |
| HARPTA withholding | When buying from a nonresident, the buyer generally withholds 7.25% of the amount realized and remits it by the 20th day after the transfer | Hawaii DoTax, Form N-288 instructions |
| County property tax | FY 2026–27 rates per $1,000 of net taxable value: Homeowner $5.75; Residential tiers $11.10 / $14.50 / $17.00; Hotel and Resort $11.55 | Hawaiʻi County Council notice of rates |
| Short-term rentals | Counties regulate the time, place, manner and duration of uses, including vacation rentals, and may phase them out | Act 17 (2024), Governor's office |
Where the Kona Coast luxury market is
The Kona Coast runs along the west side of Hawaiʻi Island (the Big Island), centered on Kailua-Kona, with the Kohala Coast to the north. Haute Real Estate Network members on this coast work in:
- Kailua-Kona and the coast north of town, including private club communities. Carrie Nicholson's profile describes Kohanaiki as a private club and residential community on roughly 450 oceanfront acres along the Kona Coast, developed by Kennedy Wilson, with custom homesites from about half an acre to over an acre as well as pre-designed and finished homes. Its sales program launched in April 2013, and its 67,000-square-foot clubhouse was completed in 2016. Her profile also lists her earlier role as Principal Broker for Kukio Properties.
- The Kohala Coast resorts and upcountry. Dina Singer's profile lists Mauna Lani, Mauna Kea, Waikoloa Beach Resort, Kohala Ranch and Kamuela (Waimea) among the communities she serves.
What you'll find: oceanfront and golf-course estates, custom homesites where you build your own home, townhomes and condominiums in resort settings, and larger acreage parcels. Inventory changes constantly, so ask an agent for current listings and recent comparable sales; this guide doesn't quote prices.
Check 1: Lava-flow hazard zone
The U.S. Geological Survey's Hawaiian Volcano Observatory divides Hawaiʻi Island into nine lava-flow hazard zones, based mainly on where lava has flowed in the past. Zone 1 is the most hazardous (the summits and rift zones of Kīlauea and Mauna Loa) and Zone 9 (Kohala) the least.
- Hualālai is the volcano behind Kailua-Kona. USGS lists Kailua-Kona, Kalaoa, Waikoloa, Kahaluu-Keauhou and Honalo as nearby towns and notes that most of the area's resorts, homes and commercial buildings were built on its flanks in the past few decades. It last erupted in 1800–1801, when two flows reached the sea on the west coast; the Kona International Airport at Keahole, about 7 miles north of Kailua-Kona, is built on the larger one. USGS rates its threat potential "High" and considers it likely to erupt again.
- The Hawaii Statewide GIS Program's hazard-zone data put all of Hualālai in Zone 4, where eruptions are less frequent than on Kīlauea or Mauna Loa: about 5% of Zone 4 has been covered by lava since 1800, and less than 15% in the last 750 years. (Over a longer span, USGS says 80% of Hualālai's surface has been covered by lava in the past 5,000 years.)
- Zones are relative and approximate. USGS says zone boundaries are gradational (about half a mile wide) and are "indicative on the neighborhood level, but not on the property level."
- How to check: look up the address on the Hawaii Statewide GIS Program's lava-flow hazard zone layer, and ask your agent, lender and insurer how the zone affects financing and coverage.
Check 2: Hawaii conveyance tax
Hawaii taxes the transfer of real property. The person who pays it is generally the seller (the grantor or transferor). The rate is set by the property's value and applies to the full price, not just the part above each threshold. Rates per $100 of the price (Form P-64A instructions):
| Price | General rate | Condo or house, buyer not eligible for a county homeowner exemption |
|---|---|---|
| Under $600,000 | $0.10 | $0.15 |
| $600,000 to under $1M | $0.20 | $0.25 |
| $1M to under $2M | $0.30 | $0.40 |
| $2M to under $4M | $0.50 | $0.60 |
| $4M to under $6M | $0.70 | $0.85 |
| $6M to under $10M | $0.90 | $1.10 |
| $10M or more | $1.00 | $1.25 |
For example, at the $1.25 rate the tax is 1.25% of the price. That's why sellers ask whether a second-home buyer will claim a homeowner exemption. The declaration (Form P-64A) is filed with the Bureau of Conveyances within 90 days of the transfer. A 2026 bill to change the rate structure (HB2049) was deferred in Senate committee in April 2026, so the rates above are the ones in effect.
Check 3: HARPTA withholding when the seller is a nonresident
Under HARPTA (the Hawaii Real Property Tax Act), when you buy from a nonresident person, you as the buyer generally must withhold 7.25% of the amount realized and send it to the Hawaii Department of Taxation by the 20th day after the transfer (Form N-288). This collects Hawaii income tax the nonresident may owe, and the obligation is the buyer's. Exceptions exist: for example, the seller can give the buyer a certification of exemption (Form N-289), or obtain a withholding certificate that reduces or eliminates the withholding (Form N-288B). Ask your escrow officer early whether the seller is a nonresident.
Check 4: Hawaiʻi County property tax class
Hawaiʻi County taxes each property by class. For the July 1, 2026 to June 30, 2027 fiscal year the County set these rates per $1,000 of net taxable value (Resolution 574-26):
| Class | Rate |
|---|---|
| Homeowner | $5.75 |
| Residential, Tier One | $11.10 |
| Residential, Tier Two | $14.50 |
| Residential, Tier Three | $17.00 |
| Long-Term Rental | $7.75 |
| Apartment | $11.70 |
| Hotel and Resort | $11.55 |
| Agricultural / Native Forests | $9.35 |
| Conservation | $11.55 |
A full-time resident who claims the homeowner exemption pays a very different rate from a second-home owner, so ask how the property is classed today and how it would be classed for your use. The Residential tier thresholds are set by the County; check them with the County's Real Property Tax Office.
Check 5: Short-term rental rules
If rental income is part of the plan, check before you buy. Act 17 (2024) clarified that Hawaii's counties can regulate the time, place, manner and duration of land uses, including short-term rentals, and can phase out or amortize transient vacation rentals. Ask the County Planning Department (and the community's association rules) what is allowed on the specific property, and get it in writing.
Other checks on the Big Island
- Community rules and club membership. Private club communities have their own covenants, design review and membership terms. Read them before you make an offer.
- Building a home. Homesite buyers should ask about design guidelines, utilities and building timelines.
- Verify the agent. Licenses can be checked with the Hawaii Department of Commerce and Consumer Affairs (DCCA).
Work with a Kona Coast agent
Browse member agents in Find a Realtor, which has a Hawaii section.
Featured agents: Carrie Nicholson (Principal Broker and Vice President of Sales and Marketing at Kohanaiki Realty in Kailua Kona, with more than 25 years in Big Island luxury real estate, according to her profile) and Dina Singer (REALTOR® salesperson with Hawaii Luxury Real Estate, serving resort communities along the Kohala and Kona Coast, including Mauna Lani, Mauna Kea and Kohala Ranch).
Related pages
- 9 Questions with Carrie Nicholson
- Carrie Nicholson Joins Kohanaiki Realty as Principal Broker & Vice President of Sales & Marketing
- SOLD: Hale Kai Apo at Kohanaiki — Oceanfront Kona Coast Estate
- Market Pulse: A Conversation with Dina Singer on Hawaii's Luxury Real Estate Landscape
- Inside Dina Singer's Thoughtful Approach to Luxury Living on Hawaiʻi Island
- Market Reports
FAQs
Where is the Kona Coast?
On the west side of Hawaiʻi Island (the Big Island), centered on Kailua-Kona, with the Kohala Coast resorts to the north.
Is Kona at risk from lava?
Hazard varies by location. Kailua-Kona sits on the flanks of Hualālai, which is entirely in lava-flow hazard Zone 4 on a 1-to-9 scale (1 is the most hazardous). About 5% of that zone has been covered since 1800, and Hualālai last erupted in 1800–1801. USGS considers it likely to erupt again. Check the specific address on the Hawaii Statewide GIS hazard map.
Who pays the conveyance tax in Hawaii?
Generally the seller. The rate depends on the price, applies to the full price, and is higher for a condo or house when the buyer isn't eligible for a county homeowner exemption, up to $1.25 per $100 at $10 million or more.
What is HARPTA?
The Hawaii Real Property Tax Act. When the seller is a nonresident, the buyer generally must withhold 7.25% of the amount realized and pay it to the state by the 20th day after the transfer, unless an exception or withholding certificate applies.
What are Hawaiʻi County property tax rates for second homes?
It depends on the class. For FY 2026–27 the Homeowner class rate is $5.75 per $1,000 of net taxable value. Residential class rates are tiered at $11.10, $14.50 and $17.00 per $1,000. Ask the County which class and tier will apply to your use.
Can I rent out a Kona Coast home on a short-term basis?
It depends on the property's zoning, County permits and community rules. Act 17 (2024) confirmed the counties' authority to regulate, and even phase out, vacation rentals. Confirm before you buy.
Does this guide list current prices?
No. Prices change too quickly to publish here. Ask a member agent for current listings and recent comparable sales.
Sources
- Hawaii Department of Taxation, Instructions for Form P-64A, Conveyance Tax Certificate (Rev. 2025). https://files.hawaii.gov/tax/forms/current/p64ains.pdf (fetched 2026-10-26).
- Hawaii Department of Taxation, Instructions for Forms N-288 and N-288A (Rev. 2025), withholding on dispositions by nonresident persons of Hawaii real property interests. https://files.hawaii.gov/tax/forms/current/n288_i.pdf (fetched 2026-10-26).
- Hawaii State Legislature, HB2049 (2026) measure status (deferred by Senate Ways and Means, April 6, 2026). https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2049&year=2026 (fetched 2026-10-26).
- USGS Hawaiian Volcano Observatory, "Frequently asked questions and answers about lava-flow hazards." https://www.usgs.gov/observatories/hvo/frequently-asked-questions-and-answers-about-lava-flow-hazards (fetched 2026-10-26).
- USGS, "Hualālai" volcano page. https://www.usgs.gov/volcanoes/hualalai (fetched 2026-10-26).
- Hawaii Statewide GIS Program, "Volcano Hazard Zones" metadata. https://files.hawaii.gov/dbedt/op/gis/data/vhzones.pdf (fetched 2026-10-26).
- County of Hawaiʻi, notice of real property tax rates for fiscal year July 1, 2026 to June 30, 2027 (Resolution 574-26), published legal notice, June 13, 2026. https://statelegals.staradvertiser.com/2026/06/13/0001529053-02/ (fetched 2026-10-26).
- Office of the Governor, State of Hawaii, news release on signing SB 2919 (Act 17), May 3, 2024; Act 17, Session Laws of Hawaii 2024. https://data.capitol.hawaii.gov/sessions/sessionlaws/Years/SLH2024/SLH2024_Act17.pdf (fetched 2026-10-26).
- Carrie Nicholson and Dina Singer member profiles, Haute Real Estate Network (rendered 2026-10-26).
This guide is general information, not legal, tax or investment advice. Confirm taxes, zoning and hazard information for a specific property with the County of Hawaiʻi, the Hawaii Department of Taxation and your own advisors.