Colorado vs Hawaii
Property Tax Comparison: Colorado vs. Hawaii
Intro
Both Colorado and Hawaii levy property taxes that fund local services such as schools, roads, and public safety. The two states differ markedly in tax rates, home values, and median household incomes. The following side‑by‑side data, taken from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), highlights those differences.
Side‑by‑Side Comparison
| Metric | Colorado | Hawaii |
|---|---|---|
| Effective property tax rate | 0.49 % | 0.27 % |
| Median home value | $502,200 | $808,200 |
| Median annual property tax | $2,448 | $2,183 |
| Tax on a $250,000 home | $1,219 | $675 |
| Tax on a $500,000 home | $2,438 | $1,351 |
| Median household income | $92,470 | $98,317 |
Sources: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State Has the Lower Property Tax Burden?
Winner (lower tax rate): Hawaii
- Effective tax‑rate difference: 0.22 percentage points (Hawaii’s 0.27 % vs. Colorado’s 0.49 %).
- Relative difference: 44.59 % lower rate in Hawaii.
- Annual tax difference on a $250 k home: $544 less in Hawaii ($1,219 – $675).
- Annual tax difference on a $500 k home: $1,087 less in Hawaii ($2,438 – $1,351).
Because the effective property tax rate is the primary factor driving these calculations, Hawaii yields a lower overall property‑tax burden despite its higher median home values.
Who Might Find This Comparison Most Relevant?
| Audience | Why the data matters |
|---|---|
| Current or prospective homeowners | The effective tax rate directly influences the annual cost of owning a home. Lower rates can reduce long‑term housing expenses. |
| Retirees | Fixed incomes make the predictability of property taxes important. A lower rate (as in Hawaii) may ease budgeting, though overall cost of living and home prices also affect affordability. |
| Real‑estate investors | Tax rates affect cash‑flow projections. A lower rate improves net operating income, all else equal. |
| Policy analysts or planners | The contrast illustrates how states with different fiscal structures allocate revenue needs across property taxes versus other taxes. |
The comparison is factual and does not account for other taxes (e.g., income, sales) or cost‑of‑living factors that also influence overall affordability.
Further Reading
All figures are based on the most recent ACS estimates (2023 5‑year) released by the U.S. Census Bureau.
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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.