Hawaii vs Minnesota
Property‑Tax Comparison: Hawaii vs. Minnesota
Intro
Both Hawaii and Minnesota levy property taxes to fund local services, but the two states differ markedly in rates, median home values, and the amount most homeowners pay each year. Using the latest available data from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), this article presents a side‑by‑side view of the key metrics and highlights which state imposes the lower effective property‑tax burden.
Side‑by‑Side Comparison
| Metric | Hawaii | Minnesota |
|---|---|---|
| Effective property‑tax rate* | 0.27 % | 1.04 % |
| Median home value | $808,200 | $305,500 |
| Median annual property tax | $2,183 | $3,184 |
| Property tax on a $250,000 home | $675 | $2,606 |
| Property tax on a $500,000 home | $1,351 | $5,211 |
| Median household income | $98,317 | $87,556 |
| Primary source | Hawaii property tax | Minnesota property tax |
*Effective property‑tax rate = median annual tax ÷ median home value.
Which State “Wins” on Property Tax?
Winner (lower tax rate): Hawaii
- Rate difference: 1.04 % − 0.27 % = 0.77 percentage points, which is a 74.08 % lower effective rate in Hawaii.
- Annual tax difference on a $250k home: $2,606 − $675 = $1,931.
- Annual tax difference on a $500k home: $5,211 − $1,351 = $3,860.
Why Hawaii wins: The effective property‑tax rate of 0.27 % is substantially below Minnesota’s 1.04 %. Even though Hawaii’s median home price is more than double Minnesota’s, the lower rate translates into a lower median tax bill and smaller absolute taxes on both $250k and $500k properties.
Who Is This Comparison Most Relevant For?
| Audience | Relevance of Findings |
|---|---|
| Current homeowners | Understanding the ongoing tax burden helps in budgeting and evaluating the long‑term cost of staying in or moving between the two states. |
| Prospective homebuyers | The tax differential can affect total housing affordability, especially for buyers of mid‑range homes ($250k–$500k). |
| Retirees | Lower property taxes can reduce fixed‑income expenses; Hawaii’s lower rate may be advantageous despite higher home values. |
| Real‑estate investors | Effective tax rates influence cash‑flow calculations; a lower rate in Hawaii may offset higher purchase prices in some scenarios. |
| Policy analysts | The contrast illustrates how state‑level tax policy and assessment practices contribute to overall tax burden disparities. |
All observations are based on the most recent ACS estimates and reflect median values; individual tax bills can vary due to local assessment practices, exemptions, and property‑specific factors.
Sources
- According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
- Based on the most recent ACS estimates, the effective property‑tax rates and median tax amounts are calculated as shown in the table above.
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.