California vs Minnesota
California
Property Tax Comparison: California vs. Minnesota
Introduction
Both California and Minnesota levy property taxes on real‑estate owners, but the rates and resulting tax bills differ substantially. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), California’s effective property tax rate is lower than Minnesota’s, while median home values and household incomes also vary between the two states. The following sections present the key metrics side by side, identify which state has the lower tax burden, and discuss the groups for whom this comparison is most relevant.
Side‑by‑Side Comparison
| Metric | California | Minnesota |
|---|---|---|
| Effective property tax rate | 0.71% | 1.04% |
| Median home value | $695,400 | $305,500 |
| Median annual property tax | $4,926 | $3,184 |
| Tax on a $250,000 home | $1,771 | $2,606 |
| Tax on a $500,000 home | $3,542 | $5,211 |
| Median household income | $96,334 | $87,556 |
| Reference | California property tax | Minnesota property tax |
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Tax Rate?
- Winner (lower rate): California
- Rate difference: 0.33 percentage points (California 0.71% vs. Minnesota 1.04%).
- Percentage difference: Approximately 32.0% lower effective rate in California.
Tax‑bill impact on example homes
| Home value | Annual tax in California | Annual tax in Minnesota | Difference (California – Minnesota) |
|---|---|---|---|
| $250,000 | $1,771 | $2,606 | ‑$835 |
| $500,000 | $3,542 | $5,211 | ‑$1,669 |
Based on the most recent ACS estimates, California’s lower effective property tax rate translates into smaller annual tax bills for comparable property values, even though its median home price is more than twice that of Minnesota.
Who Might Find This Comparison Useful?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Understanding how the tax rate affects overall housing costs in each state. |
| Retirees or fixed‑income households | Lower property tax rates can reduce cash‑flow pressure, especially when moving to a state with higher median home values. |
| Real‑estate investors | Tax rate differences influence net operating income and return‑on‑investment calculations. |
| Policy analysts or students | The data illustrate how state‑level tax policies interact with housing markets and income levels. |
The comparison is purely quantitative; it does not address other tax categories (e.g., income or sales tax), cost‑of‑living factors, or state‑specific exemptions that may affect individual circumstances.
Conclusion
According to U.S. Census Bureau data, California has a lower effective property tax rate (0.71 %) than Minnesota (1.04 %). This rate advantage results in lower annual taxes for identical property values, though California’s median home price and median household income are both higher. Stakeholders such as homeowners, retirees, and investors can use these figures to assess the relative property‑tax burden when evaluating housing options in the two states.
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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.