California vs Montana
California
Property‑Tax Comparison: California vs. Montana
Brief overview
Both California and Montana levy property taxes that are based on the assessed value of real‑estate. Using the latest 5‑year estimates from the U.S. Census Bureau’s 2023 American Community Survey (ACS), the two states show similar effective tax rates but differ markedly in median home values and household incomes. The table below presents the key metrics side‑by‑side.
Side‑by‑side comparison
| Metric | California | Montana |
|---|---|---|
| Effective property‑tax rate | 0.71 % | 0.75 % |
| Median home value | $695,400 | $338,100 |
| Median annual property tax | $4,926 | $2,535 |
| Tax on a $250,000 home | $1,771 | $1,875 |
| Tax on a $500,000 home | $3,542 | $3,749 |
| Median household income | $96,334 | $69,922 |
All figures are 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 (effective rate = 0.71 %)
- Rate difference: 0.04 percentage points, which is a 5.52 % relative difference.
Because the effective rate is the percentage applied to the assessed value, California imposes a slightly lower proportion of tax on a given property value. The absolute tax amount reflects both the rate and the underlying home price. For identical home values, California’s tax is lower:
| Home value | Tax difference (California – Montana) |
|---|---|
| $250,000 | ‑$104 per year |
| $500,000 | ‑$207 per year |
Why the difference matters
The lower effective rate means that, all else equal, California homeowners pay a smaller share of their property’s assessed value in tax than Montana homeowners. However, California’s median home price is more than double Montana’s, so the median annual tax bill is higher in California despite the lower rate.
Who is this comparison most relevant for?
| Audience | Relevance of the data |
|---|---|
| Current or prospective homeowners | Knowing the effective tax rate helps estimate ongoing housing costs. The lower rate in California may be advantageous for high‑value properties, while Montana’s lower median home price can result in a lower total tax bill for average‑priced homes. |
| Retirees | Property‑tax burden influences fixed‑income budgeting. Retirees on limited incomes may find Montana’s lower median home values and median household income more aligned with affordable living, even though the rate is slightly higher. |
| Real‑estate investors | Effective tax rate directly impacts cash‑flow calculations. California’s marginally lower rate could improve net returns on high‑value assets, whereas Montana’s lower home values may lower entry costs. |
| Policy analysts / researchers | The side‑by‑side metrics illustrate how tax rates interact with housing market values and income levels across states. |
Sources
- According to U.S. Census Bureau data, the effective property‑tax rates, median home values, median annual taxes, and household incomes are drawn from the 2023 American Community Survey (5‑year estimates).
- For more detailed state‑specific information, see the internal pages on California property tax and Montana property tax.
Based on the most recent ACS estimates, California has the lower effective property‑tax rate, but total tax expenses depend heavily on local home values and household income.
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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.