Alabama vs Hawaii
Property‑Tax Comparison: Alabama vs. Hawaii
Both Alabama and Hawaii levy property taxes on real‑estate owners, but the rates, median home values, and resulting tax bills differ considerably. The following analysis uses U.S. Census Bureau data from the 2023 American Community Survey (5‑year estimates) to present a side‑by‑side comparison of the two states.
Key Metrics
| Metric | Alabama | Hawaii |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 0.27 % |
| Median home value | $195,100 | $808,200 |
| Median annual property tax | $738 | $2,183 |
| Property tax on a $250,000 home | $946 | $675 |
| Property tax on a $500,000 home | $1,892 | $1,351 |
| Median household income | $62,027 | $98,317 |
| Link to detailed state page | Alabama property tax | Hawaii property tax |
Which State Has the Lower Rate?
- Winner (lower effective tax rate): Hawaii (0.27 % vs. 0.38 % in Alabama)
- Rate difference: 0.11 percentage points, representing a 28.60 % lower effective rate in Hawaii.
The lower rate in Hawaii translates into smaller tax bills for comparable property values:
| Home value | Tax in Alabama | Tax in Hawaii | Difference (Alabama – Hawaii) |
|---|---|---|---|
| $250,000 | $946 | $675 | $271 |
| $500,000 | $1,892 | $1,351 | $541 |
Interpretation of the Results
According to the U.S. Census Bureau's 2023 ACS estimates, Hawaii’s effective property‑tax rate is the smaller of the two, which directly reduces the annual tax burden on homeowners at any given property price. The absolute tax savings become more pronounced as the assessed value rises, as shown in the $250 k and $500 k examples above.
Who Might Find This Comparison Most Relevant?
| Audience | Relevance of the Comparison |
|---|---|
| Current homeowners | Understanding how their annual tax bill could change if they relocate between the two states. |
| Prospective homebuyers | Evaluating the long‑term cost of ownership beyond purchase price. |
| Retirees | Assessing property‑tax impact on fixed‑income budgets, especially when considering states with differing median incomes and home values. |
| Real‑estate investors | Comparing tax efficiency of holding properties in each market. |
| Policy analysts | Using the data to examine the relationship between tax rates, home values, and household incomes across states. |
All groups benefit from a factual, data‑driven view of how property‑tax rates interact with home values and income levels.
Summary
Based on the most recent ACS estimates, Hawaii’s effective property‑tax rate of 0.27 % is lower than Alabama’s 0.38 %, resulting in smaller annual tax obligations for comparable property values. While Hawaii’s median home price is substantially higher, the lower rate still produces lower tax bills on identical home values. Stakeholders such as homeowners, retirees, and investors can use these figures to gauge the relative cost of property ownership in each state.
Explore More Comparisons
Discover how property taxes compare across all states in our comprehensive comparison guide.
Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.