California vs Missouri
California
Property‑Tax Comparison: California vs. Missouri
Intro
Both California and Missouri levy property taxes that fund local services such as schools, roads, and public safety. According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), the two states differ markedly in median home values, effective tax rates, and the amount of tax paid on typical properties. This article presents a side‑by‑side view of the key metrics, identifies which state has the lower property‑tax rate, and outlines the homeowner segments for which the comparison is most relevant.
Side‑by‑Side Comparison Table
| Metric (2023 ACS) | California | Missouri |
|---|---|---|
| Effective property‑tax rate | 0.71 % | 0.88 % |
| Median home value | $695,400 | $215,600 |
| Median annual property tax | $4,926 | $1,887 |
| Property tax on a $250,000 home | $1,771 | $2,188 |
| Property tax on a $500,000 home | $3,542 | $4,376 |
| Median household income | $96,334 | $68,920 |
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): California – effective rate of 0.71 %, compared with 0.88 % in Missouri.
- Rate difference: 0.17 percentage points, representing a 19.06 % relative advantage for California.
- Annual tax difference on a $250,000 home: $417 less in California ($1,771 vs. $2,188).
- Annual tax difference on a $500,000 home: $834 less in California ($3,542 vs. $4,376).
The lower effective tax rate in California results from its statutory limit of roughly 1 % of assessed value (Proposition 13) combined with a relatively high assessed value base, whereas Missouri’s higher rate applies to a lower median home value.
Who Is This Comparison Most Relevant For?
| Audience | Relevance of Findings |
|---|---|
| Current homeowners in either state | Understanding how their tax burden compares to a similar‑valued property in the other state can inform decisions about relocation or refinancing. |
| Prospective homebuyers | The data illustrate that a higher‑priced home in California may still incur a lower tax bill than a modest‑priced home in Missouri, due to the rate difference. |
| Retirees and fixed‑income households | While California’s tax rate is lower, the much higher median home price means the absolute tax amount can be larger; retirees should weigh both rate and home‑price contexts. |
| Real‑estate investors | The effective tax rate influences cash‑flow projections; investors can use the rate differential to assess long‑term holding costs across the two markets. |
Summary
Based on the most recent ACS estimates, California’s effective property‑tax rate of 0.71 % is lower than Missouri’s 0.88 %, making California the “winner” in a pure rate comparison. However, the absolute tax paid also depends on home values, which are substantially higher in California. Stakeholders—homeowners, prospective buyers, retirees, and investors—should consider both the rate and the local housing market when evaluating overall property‑tax burden.
For more detailed state‑specific information, see the linked pages:
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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.