Hawaii vs Massachusetts
Property‑Tax Comparison: Hawaii vs. Massachusetts
Summary – Both Hawaii and Massachusetts have relatively high median home values, but the two states differ markedly in how much property owners pay each year. Using the most recent data from the U.S. Census Bureau, Hawaii’s effective property‑tax rate is less than a third of Massachusetts’s rate, resulting in substantially lower annual tax bills for comparable home prices.
Side‑by‑side metrics
| Metric (2023 ACS 5‑year) | Hawaii | Massachusetts |
|---|---|---|
| Effective property‑tax rate | 0.27 % | 1.11 % |
| Median home value | $808,200 | $525,800 |
| Median annual property tax | $2,183 | $5,813 |
| Property tax on a $250,000 home | $675 | $2,764 |
| Property tax on a $500,000 home | $1,351 | $5,528 |
| Median household income | $98,317 | $101,341 |
| Internal link | Hawaii property tax | Massachusetts property tax |
All figures are from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which state “wins” on property tax?
Winner (lower tax rate): Hawaii
- Effective tax‑rate difference: 0.84 percentage points, which is a 75.57 % lower rate than Massachusetts.
- Annual tax gap for a $250 k home: $2,089 less in Hawaii.
- Annual tax gap for a $500 k home: $4,177 less in Hawaii.
Because the effective property‑tax rate in Hawaii (0.27 %) is substantially below Massachusetts’s rate (1.11 %), homeowners in Hawaii pay less in absolute dollars for the same property value. The lower rate drives the reduced median annual tax and the lower tax amounts shown for the $250 k and $500 k price points.
Who is most affected by this comparison?
| Audience | Relevance of the comparison |
|---|---|
| Current or prospective homeowners | The lower effective tax rate in Hawaii translates directly into lower yearly outlays, which can affect affordability calculations, especially for buyers of mid‑range homes ($250k–$500k). |
| Retirees and fixed‑income households | Property‑tax burden is a significant component of total cost of living. Retirees may find Hawaii’s lower tax bill advantageous, though they must also consider the state’s higher median home price. |
| Real‑estate investors | Investors comparing cash‑flow prospects should note that, despite higher home values in Hawaii, the property‑tax expense per dollar of assessed value is lower than in Massachusetts. |
| Policy analysts | The data illustrate how effective tax rates can differ dramatically even among states with comparable median incomes, providing a clear example of tax‑policy variation. |
Conclusion
Based on the most recent ACS estimates, Hawaii’s effective property‑tax rate of 0.27 % is considerably lower than Massachusetts’s 1.11 %. This results in lower median annual taxes and smaller tax bills for typical home values in Hawaii. The comparison is most useful for individuals evaluating the ongoing cost of home ownership or residence, including prospective buyers, retirees, and investors who need to factor property‑tax obligations into their financial planning.
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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.