Hawaii Estate Tax Nonresident Guide
Last updated: 9 Nov 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)
Hawaii Estate Tax — Nonresident Guide
For estates of decedents domiciled outside Hawaii that own Hawaii-situs assets. This page explains who must file, what is taxable, how to limit the tax to Hawaii assets, deadlines & extensions, payment and M-6A Release, plus practical checklists and examples.
Do you need to file as a nonresident?
What counts as Hawaii-situs property?
| Asset type | Taxed by Hawaii? | Notes |
|---|---|---|
| Real property located in Hawaii | Yes | Residences, condos, land, commercial property. Local appraisals recommended. |
| Tangible personal property kept in Hawaii | Yes | Boats, vehicles, equipment, artwork physically in Hawaii. |
| Intangibles (stock, bonds, cash, brokerage) | Generally no | Usually sourced to the decedent’s domicile unless the asset has a business situs in Hawaii. |
| Entity interests (LLC/partnership shares) | Generally no | Treated as intangibles; avoid HI business-situs facts. |
How Hawaii limits the tax to the Hawaii portion
- Hawaii-taxable estate starts from the federal framework but includes only Hawaii-situs assets for a nonresident, less applicable deductions tied to those assets.
- Federal schedules (Form 706 or 706-NA) support valuations and deductions; attach relevant pages to M-6.
- Coordination: Federal marital/charitable deductions generally flow through, subject to Hawaii instructions.
Bottom line: compute the Hawaii portion accurately; exclude non-Hawaii assets for a nonresident decedent.
Deadlines, extensions & payment
| Item | Timing | Notes |
|---|---|---|
| Form M-6 due | 9 months after death | Tax payment is due at 9 months even if you extend to file. |
| Extension to file | 6 months | If a federal 706 is required, attach IRS Form 4768 approval. If no federal return, file M-68 with payment. |
| Paying the tax | By 9 months | Pay via Hawaii Tax Online or with voucher VP-2; claim extension payments on M-6. |
| Release request | Post-filing | Use M-6A (Request for Release) to evidence Hawaii estate tax compliance for transfers/recordings. |
Core forms (nonresident focus)
Hawaii forms
- M-6 — Hawaii Estate Tax Return (attach federal schedules as applicable).
- M-68 — Extension to file when no federal 706 is required.
- M-6A — Request for Release (often needed by title/escrow and financial institutions).
- M-6GS — Hawaii GST return (if federal GST applies and Hawaii requires filing).
- VP-2 — Payment voucher for extensions/returns if paying by check.
Federal attachments
- Form 706 (or 706-NA for nonresident aliens) pages/schedules and any Form 712 (life insurance).
- Deed records, appraisals, and proof of Hawaii asset location; will/trust, letters of authority.
Follow the M-6 instructions for the full attachment checklist.
Quick examples
Example — Maui condo to children
Nonresident decedent owns a Hawaii condo and mainland investments. The HI return includes the condo (and HI-tied deductions) only; mainland accounts are excluded from the Hawaii base.
Example — Boat moored in Honolulu to nephew
Boat kept in Hawaii passes to a nephew. The boat is Hawaii-situs tangible property and is included in the HI computation even if the rest of the estate is outside Hawaii.
Nonresident filing checklist
Documents
- Death certificate; letters of appointment (domicile state and any Hawaii ancillary).
- List of Hawaii-situs assets with appraisals and location evidence.
- Federal schedules (706/706-NA), will/trusts, beneficiary designations.
Computations & timing
- Compute only the Hawaii portion on M-6; exclude non-Hawaii assets.
- Target the 9-month payment date; if needed, file M-68 to extend filing (not payment).
- Plan post-filing M-6A Release if a sale or retitling is pending.
FAQs — Nonresident estates
Are nonresidents taxed on brokerage accounts?
Generally no. Intangibles (e.g., brokerage, stock, cash) of a nonresident are typically not Hawaii-situs unless they acquire a business situs in Hawaii.
Do I have to file if there’s no Hawaii property?
Usually not. If the decedent had no Hawaii-situs assets, a Hawaii estate tax return is not generally required. Verify facts and titles carefully.
How do I get proof to close a sale or transfer?
After filing/paying, request a Release using M-6A. Title/escrow and financial institutions often require this before closing or retitling.
What if a federal estate return isn’t required?
You may still need a Hawaii filing. Use federal schedules as pro-forma support and file M-68 for a 6-month extension to file (payment still due at 9 months).