Arizona vs Hawaii
Arizona vs. Hawaii Property Taxes
Overview
According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), Arizona and Hawaii have markedly different property‑tax environments. Arizona’s effective property‑tax rate is 0.52 %, while Hawaii’s is 0.27 %. Because the two states also differ in median home values and household incomes, the absolute tax amounts vary even though Hawaii’s rate is lower. The following sections present the data side‑by‑side, identify which state has the lower rate, and discuss which groups of taxpayers might find the comparison most relevant.
Side‑by‑Side Comparison
| Metric (2023 ACS) | Arizona | Hawaii |
|---|---|---|
| Effective property‑tax rate | 0.52 % | 0.27 % |
| Median home value | $358,900 | $808,200 |
| Median annual property tax | $1,858 | $2,183 |
| Tax on a $250,000 home | $1,294 | $675 |
| Tax on a $500,000 home | $2,589 | $1,351 |
| Median household income | $76,872 | $98,317 |
Sources: “According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).”
Which State Wins on Property‑Tax Rate?
Winner (lower rate): Hawaii
- Rate difference: 0.25 percentage points (Hawaii’s 0.27 % vs. Arizona’s 0.52 %).
- Relative difference: Hawaii’s rate is roughly 48 % lower than Arizona’s (0.25 ÷ 0.52 ≈ 0.48).
Because the comparison criterion is the effective property‑tax rate, Hawaii is the winner. The lower rate translates into smaller tax bills for a given property value:
- On a $250 k home, the annual tax in Hawaii is $675, which is $619 less than Arizona’s $1,294.
- On a $500 k home, the annual tax in Hawaii is $1,351, $1,238 less than Arizona’s $2,589.
Both states’ tax amounts are derived from their respective rates applied to the assessed value of the property.
Who Might Find This Comparison Most Useful?
| Audience | Relevance of the Data |
|---|---|
| Current or prospective homeowners | Understanding how the tax rate interacts with home price helps estimate annual expenses. The lower rate in Hawaii benefits owners of lower‑priced homes, while higher median home values can offset that advantage for higher‑priced properties. |
| Retirees on fixed incomes | A lower effective rate can reduce the tax burden, especially if the retiree’s home value is modest. Hawaii’s lower rate may be advantageous, but retirees should also consider the higher median home price and overall cost of living. |
| Real‑estate investors | Rate differentials affect cash‑flow projections. Hawaii’s lower rate yields lower tax outlays per dollar of property value, which can improve net returns on comparable‑priced assets. |
| Policy analysts or researchers | The side‑by‑side metrics provide a clear illustration of how tax policy (rate) and market conditions (home values) together shape property‑tax outcomes. |
The comparison is neutral and data‑driven; it does not endorse either jurisdiction but simply reports the measurable differences in property‑tax rates and associated amounts.
Further Reading
- Detailed information on Arizona’s property‑tax structure: Arizona property tax
- Detailed information on Hawaii’s property‑tax structure: Hawaii property tax
Based on the most recent ACS estimates, these figures represent the best available nationwide data for 2023.
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.