California vs Hawaii
Property Tax Comparison: California vs. Hawaii
According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), California and Hawaii differ markedly in property‑tax burden. California’s effective property‑tax rate is 0.71 %, while Hawaii’s is 0.27 %. The table below places the two states side‑by‑side on the key metrics used in the ACS data.
| Metric (2023 ACS) | California | Hawaii |
|---|---|---|
| Effective property‑tax rate | 0.71 % | 0.27 % |
| Median home value | $695,400 | $808,200 |
| Median annual property tax | $4,926 | $2,183 |
| Property tax on a $250,000 home | $1,771 | $675 |
| Property tax on a $500,000 home | $3,542 | $1,351 |
| Median household income | $96,334 | $98,317 |
| Internal link | California property tax | Hawaii property tax |
Which State “Wins” on Property Tax?
Based on the lower effective property‑tax rate, Hawaii is the winner in this comparison. The rate difference is 0.44 percentage points, which represents a 61.87 % lower rate in Hawaii than in California.
Quantitative Impact at Common Home Prices
| Home value | Annual tax in California | Annual tax in Hawaii | Difference (California – Hawaii) |
|---|---|---|---|
| $250,000 | $1,771 | $675 | $1,096 |
| $500,000 | $3,542 | $1,351 | $2,191 |
The calculations use the effective tax rates (0.71 % for California, 0.27 % for Hawaii) applied to the specified home values.
Who Is Likely to Benefit Most from the Lower Rate?
| Audience | Relevance of Property‑Tax Burden |
|---|---|
| Current homeowners | A lower rate reduces yearly cash outlay, which can improve net cash flow and affect long‑term affordability. |
| Prospective homebuyers | The tax difference influences total housing costs; buyers on a $250 k–$500 k budget will see a $1,100–$2,200 annual saving in Hawaii. |
| Retirees | Fixed‑income households often prioritize low recurring expenses; a 61.9 % lower property‑tax rate can be a significant factor in retirement location decisions. |
| Investors | Lower property taxes can improve after‑tax return on rental properties, especially for assets in the $250 k–$500 k price range. |
| Low‑ to moderate‑income families | Although median incomes are similar, the lower tax burden in Hawaii may ease affordability pressures for families whose income is near the median. |
Summary
- Effective tax rate: Hawaii 0.27 % vs. California 0.71 % (Hawaii lower).
- Median annual tax: Hawaii $2,183 vs. California $4,926.
- Tax on a $250 k home: Hawaii $675 vs. California $1,771.
- Tax on a $500 k home: Hawaii $1,351 vs. California $3,542.
Based on the most recent ACS estimates, Hawaii imposes a substantially lower property‑tax burden than California. The difference is most consequential for homeowners, retirees, and other households where annual recurring costs are a primary consideration.
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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.