For education only. I'm a licensed Hawaiʻi REALTOR® and real estate investor — not a lawyer, CPA, or financial advisor — and nothing here is legal or financial advice. It's research-based, general information, and laws, programs, and dollar figures can change. The goal is to spark awareness and proactive action, not to replace professional advice — so always verify current details with the relevant agency or a licensed professional before acting. Always free, no obligation — ever.

Property Tax Lien — Know Your Timeline and Options

Property Tax Lien

"Understanding Makes All the Difference."™

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⏰ Time-sensitive: Hawai'i property tax liens accrue interest at up to 12% per year. A $10,000 lien becomes about $11,200 in a year — and keeps compounding. Act early; options narrow as time passes.
Property Tax Liens in Hawai'i — Even If You Own Free and Clear

In Hawai'i, unpaid real property taxes automatically become a lien against your home — whether or not you have a mortgage. Each of the four counties (Honolulu, Maui, Hawai'i Island, and Kaua'i) handles delinquency differently, but all four can ultimately move to a tax-certificate sale or tax-deed proceeding that transfers ownership.

💡 The single most important first step: contact your county's Real Property Tax Division and request your exact payoff — taxes, interest, and penalties. Acting early, while you're still in the first stages, keeps the most options open.
The Tax Lien Timeline — and Your Window at Each Stage

① Taxes Unpaid

Interest and penalties begin accruing immediately at up to 12%/year.

Window: most options open — act now

② Lien Recorded

The county records a lien against your property. It clouds title — you can't sell or refinance cleanly.

Window: payment plan still possible

③ Tax Certificate Issued

The county may sell a tax certificate to a third-party investor, who then earns interest on what you owe.

Window: redemption still possible — act fast

④ Tax Deed / Foreclosure

If the debt stays unredeemed, the county or investor can move to foreclosure, and ownership may transfer.

Window: options critically limited
⚠️ Redemption — the clock matters. Even after a tax certificate is sold, Hawai'i law generally lets you redeem by paying what's owed plus interest and costs — but the window narrows the further the process goes, and once a tax deed is issued, ownership can transfer for good. Redemption periods and the exact tax-sale process differ by county — contact your county Real Property Tax Division immediately to confirm where you stand and how long you have.
County vs. Federal (IRS) Tax Liens

Two very different kinds of tax lien can attach to your home, and knowing which you're dealing with changes the playbook.

County Property Tax Lien

  • Filed by Honolulu, Maui, Hawai'i, or Kaua'i county for unpaid real property taxes
  • Accrues at up to 12%/year
  • Installment payment plans available through the county
  • Can escalate to a tax-certificate sale

IRS Federal Tax Lien

  • Attaches to all of your real property
  • More complex — a tax attorney or EA (Enrolled Agent) is strongly recommended
  • Requires a 30-day notice period before payoff at closing
  • Can complicate or block a traditional sale
Both types must be cleared before title can transfer cleanly at closing. If you have a federal lien, plan ahead for the IRS 30-day notice — and ask a tax professional about lien subordination, which can sometimes let a refinance or sale proceed even before the lien is fully paid.
Your Options

A property tax lien does not mean you'll lose your home. Several paths exist — the right one depends on your finances and how far the lien has progressed.

📋 County Payment Plan ⭐

Each county has an installment-agreement process for delinquent property taxes. It stops further escalation while you pay, and needs no attorney — contact your county Real Property Tax Division. Interest keeps accruing on the balance, and you must act before the certificate is sold.

Best first step

🤝 IRS Offer-in-Compromise

For federal liens: the IRS may accept less than the full amount under genuine financial hardship. Complex — requires a tax attorney or EA. Not available if you have the ability to pay in full.

Best for: qualifying federal-lien hardship

🏦 Notify Your Mortgage Lender

Your lender has a security interest and may pay the lien to protect it — typically adding the payoff to your balance or escrow. It shifts who you owe rather than erasing the debt, but can buy time.

Best for: buying time

🏷️ List on the Open Market

Liens are paid off at closing from sale proceeds — no upfront cash. Best way to maximize proceeds. Factor in the IRS 30-day notice if a federal lien exists.

Best for: properties with equity

⚡ Direct Cash Sale

All county and IRS liens paid at closing from proceeds — can close in 14–30 days and stops interest accrual immediately. Price typically below market — weigh against speed.

Best for: speed and certainty

⚖️ Tax Attorney / Enrolled Agent

May find penalty-abatement options that cut the total owed, and can negotiate IRS lien subordination to allow a refinance or sale. Fees apply — but often pay for themselves in lien reduction.

Best for: federal & complex liens
Your Action Plan
  • 1
    Get the exact lien amount from your county tax office. Request a full payoff statement including all accrued interest and penalties. Know the exact number before making any decisions.
  • 2
    Check the lien's age and interest accrual. At up to 12%/year, calculate how much it has grown and how fast it's still growing — the urgency rises every month.
  • 3
    Contact your county about a payment plan before escalation. Call before the lien is sold as a tax certificate to a third-party investor.
  • 4
    For IRS federal liens — contact a tax attorney or EA (Enrolled Agent). An Offer-in-Compromise may be available if you qualify for hardship. Barbara can point you toward trusted specialists — no obligation, no referral fee.
  • 5
    Notify your mortgage lender if you have one. They have a security interest and may pay delinquent taxes to protect their position — sometimes buying you critical time.
  • 6
    Understand HARPTA before selling. A lien doesn't automatically trigger HARPTA, but selling at a gain does. Consult a Hawai'i CPA so there are no surprises at the closing table.
  • !
    Do not ignore county tax-sale notices. Once a tax certificate is issued and sold, your redemption options narrow significantly. Every notice has a deadline — respond immediately.
  • 7
    Contact Barbara. I can help you understand what a sale would net after full lien payoff — with no surprises at the closing table. 808-781-6951.
Documents to Gather First
■ County tax lien notice  ·  ■ Full tax payoff statement  ·  ■ IRS lien notice (if federal)  ·  ■ Last 3 years' tax returns  ·  ■ Mortgage statement  ·  ■ Property deed  ·  ■ TMK (Tax Map Key) number  ·  ■ Any prior payment agreements

Free Resources — By County

About free legal help in Hawai'i: Truly free legal representation for housing matters is very limited. Most free resources provide legal information or referrals — not an attorney who will represent you. The Hawai'i State Bar Lawyer Referral Service (808-537-9140) is the most reliable path to a licensed attorney; many offer a free first consultation. Be clear on what each resource offers before counting on it.

Legal Navigator Hawai'i — Start Here

Free online self-help platform built by Legal Aid Society of Hawai'i. Use it to understand your legal situation, get a guided action plan, access court forms, and find the right organizations for your specific problem. Provides legal information, not legal advice or representation.

legalnavigatorhawaii.org

Honolulu Real Property Tax Division

O'ahu property tax payoff statements, payment plans, and lien status.

808-768-3799  ·  realproperty.honolulu.gov

Maui Real Property Assessment Division

Maui County delinquent tax information and payment arrangements.

808-270-7297  ·  mauipropertytax.com

Hawai'i County Real Property Tax Division

Hawai'i Island property tax lien status and payment plans.

808-961-8201  ·  hawaiipropertytax.com

Kaua'i Real Property Assessment Division

Kaua'i County property tax delinquency and payment options.

808-241-4224  ·  kauai.gov

IRS Taxpayer Advocate Service

Free independent help for taxpayers facing IRS hardship, including federal tax liens.

877-777-4778  ·  taxpayeradvocate.irs.gov

Hawai'i HomeOwnership Center (HHOC)

HUD-approved nonprofit — free counseling and one-on-one coaching statewide.

808-523-9500  ·  hihomeownership.org

💰 Grants & Financial Assistance Programs

View 25+ military, state, and nonprofit programs to help with mortgage payments, rent, utilities, and emergency housing needs.

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Let's Talk Through Your Options

Free conversation, no pressure, no obligation. Barbara can help you understand what applies to your specific situation.

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"Informed Decisions are the Best Decisions."™

Barbara Coote is a licensed Hawai'i REALTOR® and investor. Hawai'i Home Advocates provides free homeowner education — not legal or financial advice. No compensation is received for referrals.