Facing Tax Foreclosure in Hawaii County, Hawaii? Here's What You Need to Know
For homeowners in Hawaii County, Hawaii, falling behind on property taxes doesn't have to mean losing everything.
If your property in Hawaii County has been sold -- or is at risk of being sold -- at a tax sale, this guide covers your rights and what to do next.
How Tax Sales Work in Hawaii County
Hawaii counties can foreclose on properties with taxes delinquent for three or more years. Properties are auctioned, and after covering taxes, penalties, and liens, any remaining proceeds are surplus funds.
In Hawaii County, the Real Property Tax Division handles the tax sale process. The county seat is Hilo, where you will find the relevant offices. This county uses a tax deed process.
Your Right to Surplus Funds
If your property sold for more than what was owed in back taxes and fees, you may be entitled to the difference -- called surplus funds or "overages."
The U.S. Supreme Court confirmed this in Tyler v. Hennepin County (2023), ruling unanimously that governments cannot keep surplus from tax sales beyond what is owed. This violates the Fifth Amendment's Takings Clause. In Hawaii County, surplus funds are held by Real Property Tax Division.
Hawaii surplus funds never permanently escheat -- they can always be claimed regardless of time passed.
Key Deadlines
- 1-year redemption period: You can redeem the property within one year.
- ~1 year at county: Surplus transfers to the state after about one year.
- No permanent loss: Funds held by the state can always be claimed -- they never permanently escheat.
Act quickly -- the sooner you file, the simpler the process.
Redemption Rights
Hawaii provides a one-year redemption period after the tax sale. Some counties withhold surplus distribution during this period.
Steps to Take Now
- Contact Real Property Tax Division in Hawaii County to ask about surplus funds from your property's sale.
- Act within the one-year redemption period if the sale was recent -- you may still redeem your property.
- Gather documentation: deed, tax records, government ID, and sale notices.
- File while funds are at the county level (approximately one year) for the simplest recovery process.
Free Help from AuctionBlock.org
AuctionBlock.org is a mission-driven company that helps homeowners navigate tax foreclosure and recover surplus funds -- completely free. Whether you are trying to save your home or recover money from a past sale in Hawaii County, we can help.
Visit AuctionBlock.org to search for surplus funds or connect with resources in Hawaii.
Disclaimer: Provided by AuctionBlock.org for educational purposes only -- not legal advice. Tax laws vary and are evolving post-Tyler v. Hennepin County (2023). Verify current statutes and consult a licensed Hawaii attorney before acting. Current as of April 2026.