Hawaii vs Michigan
Property‑Tax Comparison: Hawaii vs. Michigan
Overview
Both Hawaii and Michigan levy 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), the two states differ markedly in effective tax rates, median home values, and typical tax bills. The following sections present the key metrics side‑by‑side, identify which state has the lower rate, and outline the groups for whom this information is most relevant.
Side‑by‑Side Metrics
| Metric | Hawaii | Michigan |
|---|---|---|
| Effective property‑tax rate | 0.27 % | 1.28 % |
| Median home value | $808,200 | $217,600 |
| Median annual property tax | $2,183 | $2,795 |
| Property tax on a $250,000 home | $675 | $3,211 |
| Property tax on a $500,000 home | $1,351 | $6,423 |
| Median household income | $98,317 | $71,149 |
| Link to detailed state page | Hawaii property tax | Michigan property tax |
All figures are taken from the U.S. Census Bureau’s 2023 ACS 5‑year estimates.
Which State Has the Lower Tax Burden?
- Winner (lower effective rate): Hawaii
- Rate difference: 1.01 percentage points (approximately a 78.97 % lower rate in Hawaii).
- Annual tax difference on a $250,000 home: $2,536 less in Hawaii.
- Annual tax difference on a $500,000 home: $5,072 less in Hawaii.
Why Hawaii wins: The effective property‑tax rate of 0.27 % in Hawaii is roughly one‑quarter of Michigan’s 1.28 % rate. Even though Hawaii’s median home price is substantially higher, the lower rate translates into a smaller tax bill for comparable property values.
Who Is This Comparison Most Useful For?
| Audience | Relevance |
|---|---|
| Current or prospective homeowners | Understanding how property‑tax obligations differ can affect budgeting and location decisions. |
| Retirees | Fixed‑income retirees often consider tax burden when choosing a residence; the lower rate in Hawaii may be advantageous despite higher home prices. |
| Real‑estate investors | Tax rate and median home value together influence cash‑flow projections and return on investment calculations. |
| Policy analysts | The contrast illustrates how state tax structures and housing markets interact, useful for comparative fiscal studies. |
Summary
Based on the most recent ACS estimates, Hawaii imposes a significantly lower effective property‑tax rate than Michigan (0.27 % vs. 1.28 %). This results in lower annual taxes on identical home values, even though Hawaii’s median home price is more than three times that of Michigan. Stakeholders such as homeowners, retirees, and investors can use these data points to assess the relative cost of property ownership in each state.
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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.