Hawaii vs Iowa
Property‑Tax Comparison: Hawaii vs. Iowa
Both Hawaii and Iowa 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 data below are taken from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Side‑by‑Side Metrics
| Metric | Hawaii | Iowa |
|---|---|---|
| Effective property‑tax rate | 0.27 % | 1.43 % |
| Median home value | $808,200 | $195,900 |
| Median annual property tax | $2,183 | $2,795 |
| Property tax on a $250,000 home | $675 | $3,567 |
| Property tax on a $500,000 home | $1,351 | $7,134 |
| Median household income | $98,317 | $73,147 |
| Internal link | Hawaii property tax | Iowa property tax |
Which State “Wins” on Property Taxes?
Hawaii has the lower effective property‑tax rate.
- The rate in Hawaii (0.27 %) is 1.16 percentage points lower than Iowa’s (1.43 %).
- In relative terms, Hawaii’s rate is about 81 % lower than Iowa’s.
Because the rate is lower, the absolute tax burden for comparable home values is also lower in Hawaii:
| Home value | Tax difference (Hawaii – Iowa) |
|---|---|
| $250,000 | $2,892 less in Hawaii ($675 vs. $3,567) |
| $500,000 | $5,783 less in Hawaii ($1,351 vs. $7,134) |
Thus, based on the lower property‑tax rate, Hawaii “wins” the comparison.
Who Might Benefit From This Comparison?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Understanding the tax burden associated with a given home price helps evaluate affordability in each state. |
| Retirees | Property taxes affect fixed‑income budgets; a lower rate (as in Hawaii) can reduce annual expenses, though overall cost of living and home prices must also be considered. |
| Real‑estate investors | The effective tax rate influences cash‑flow projections; Iowa’s higher rate may be offset by lower home prices, while Hawaii’s low rate comes with higher property values. |
| Policy analysts | The contrasting rates illustrate how state‑level fiscal policy can produce divergent tax outcomes despite similar median household incomes. |
Summary
According to U.S. Census Bureau data, Hawaii’s effective property‑tax rate (0.27 %) is substantially lower than Iowa’s (1.43 %). This translates to lower annual taxes for identical home values—$2,892 less on a $250 k home and $5,783 less on a $500 k home. The comparison is most useful for individuals and professionals assessing the tax component of housing costs in these two states.
Explore More Comparisons
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.