Hawaii vs New Mexico
Property‑Tax Comparison: Hawaii vs. New Mexico
Quick overview – Both states differ markedly in how much homeowners pay in property taxes relative to the value of their homes. Hawaii’s effective property‑tax rate is less than half of New Mexico’s, while median home values and household incomes are considerably higher in Hawaii.
Side‑by‑side metrics
| Metric (2023 ACS 5‑year) | Hawaii | New Mexico |
|---|---|---|
| Effective property‑tax rate | 0.27 % | 0.72 % |
| Median home value | $808,200 | $232,200 |
| Median annual property tax | $2,183 | $1,669 |
| Property tax on a $250,000 home | $675 | $1,797 |
| Property tax on a $500,000 home | $1,351 | $3,594 |
| Median household income | $98,317 | $62,125 |
All figures are taken from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which state has the lower tax burden?
Winner (lower effective tax rate): Hawaii
- Rate difference: 0.72 % − 0.27 % = 0.45 percentage points.
- Relative difference: 0.45 % ÷ 0.72 % ≈ 62.42 % lower in Hawaii.
- Annual tax difference on a $250k home: $1,797 − $675 = $1,122.
- Annual tax difference on a $500k home: $3,594 − $1,351 = $2,243.
Because the effective tax rate is the primary determinant of property‑tax liability, Hawaii’s lower rate translates into smaller annual payments for comparable‑valued homes, even though its median home price is substantially higher.
Who benefits most from this comparison?
| Audience | Relevance of the data |
|---|---|
| Current homeowners | Understanding how property‑tax obligations differ can inform budgeting and decisions about refinancing or moving. |
| Prospective homebuyers | The tax figures help evaluate the total cost of ownership in each state, beyond purchase price. |
| Retirees | Many retirees consider property taxes when choosing a low‑cost‑of‑living location; Hawaii’s lower rate may offset higher home values for some. |
| Real‑estate investors | Effective tax rates affect cash‑flow projections; a lower rate in Hawaii may improve net returns despite higher acquisition costs. |
The comparison is purely quantitative; other factors such as climate, local services, and lifestyle are not addressed.
Sources
- Effective property‑tax rates, median home values, and household incomes – According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
- Property‑tax calculations – Derived from the effective rates applied to the example home values ($250 k and $500 k).
For more detailed state‑specific information, see the dedicated pages on Hawaii property tax and New Mexico 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.