Hawaii vs Kentucky
Property‑Tax Comparison: Hawaii vs. Kentucky
Intro
Both Hawaii and Kentucky impose property taxes that fund local services such as schools, public safety, and infrastructure. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Hawaii’s effective property‑tax rate is considerably lower than Kentucky’s, even though median home values differ sharply between the two states. The following sections present the key figures side‑by‑side, identify the state with the lower rate, and outline which types of taxpayers are most affected by the differences.
Side‑by‑Side Comparison of Key Metrics
| Metric | Hawaii | Kentucky |
|---|---|---|
| Effective property‑tax rate* | 0.27 % | 0.77 % |
| Median home value | $808,200 | $192,300 |
| Median annual property tax | $2,183 | $1,472 |
| Property tax on a $250,000 home | $675 | $1,914 |
| Property tax on a $500,000 home | $1,351 | $3,827 |
| Median household income | $98,317 | $62,417 |
*Effective property‑tax rate = median annual property tax ÷ median home value.
Sources: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State Wins on Property‑Tax Burden?
Winner (lower tax rate): Hawaii
- Rate difference: Hawaii’s rate is 0.50 percentage points lower than Kentucky’s, representing a 64.72 % lower effective rate.
- Dollar impact on a $250 k home: Hawaii taxes $675 annually versus Kentucky’s $1,914, a difference of $1,239 per year.
- Dollar impact on a $500 k home: Hawaii taxes $1,351 annually versus Kentucky’s $3,827, a difference of $2,476 per year.
The lower effective rate in Hawaii stems from the state’s tax structure, which caps property‑tax levies at 1 % of assessed value and applies a relatively modest uniform tax rate. Kentucky, by contrast, relies on higher local millage rates, resulting in a higher effective burden despite lower home values.
Who Benefits Most from This Comparison?
| Audience | Relevance of the Data |
|---|---|
| Homeowners purchasing a primary residence | The effective tax rate directly influences annual cash flow. Buyers of median‑priced homes will pay less in Hawaii (as a percentage of value) even though the dollar amount can be higher because of higher home prices. |
| Retirees on fixed incomes | Property‑tax affordability is critical. Although Hawaii’s median tax dollar amount is higher ($2,183 vs. $1,472), its lower rate may be offset by higher home values; retirees must consider both the rate and the likely purchase price. |
| Real‑estate investors | Investors focusing on cash‑on‑cash return will find Kentucky’s lower median tax dollar amount advantageous for lower‑priced properties, while Hawaii’s lower rate may benefit higher‑value assets. |
| Policy analysts | The contrast illustrates how state‑level tax policy and home‑value distributions combine to produce different effective burdens, useful for comparative fiscal studies. |
Summary
Based on the most recent ACS estimates, Hawaii has a lower effective property‑tax rate than Kentucky (0.27 % vs. 0.77 %). The rate difference translates into a substantial dollar‑per‑year savings for comparable home values, though absolute tax payments remain higher in Hawaii because of its higher median home prices. Stakeholders—including prospective homeowners, retirees, and investors—should evaluate both the rate and the typical property values in each state to determine overall tax affordability.
For more detailed state‑specific information, see the internal pages on Hawaii property tax and Kentucky property tax.
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.