Hawaii vs North Carolina
Property‑Tax Comparison: Hawaii vs. North Carolina
Intro
Both Hawaii and North Carolina levy property taxes that fund local services such as schools, roads, and public safety. 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 median household incomes. The following sections present a side‑by‑side comparison of the key metrics and identify which state imposes the lower property‑tax burden.
Side‑by‑side comparison of key metrics
| Metric | Hawaii | North Carolina |
|---|---|---|
| Effective property‑tax rate | 0.27 % | 0.70 % |
| Median home value | $808,200 | $259,400 |
| Median annual property tax | $2,183 | $1,815 |
| Property tax on a $250,000 home | $675 | $1,749 |
| Property tax on a $500,000 home | $1,351 | $3,499 |
| Median household income | $98,317 | $69,904 |
Sources: Hawaii property tax and North Carolina property tax; data drawn from the U.S. Census Bureau’s 2023 ACS 5‑year estimates.
Which state “wins” on property tax?
Winner (lower effective tax rate): Hawaii
- Rate difference: 0.70 % − 0.27 % = 0.43 %, which is a 61.4 % lower effective rate in Hawaii.
- Annual tax difference on a $250k home: $1,749 − $675 = $1,074.
- Annual tax difference on a $500k home: $3,499 − $1,351 = $2,148.
Based on the lower effective property‑tax rate, Hawaii imposes a smaller percentage of a home’s assessed value as tax than North Carolina. The absolute tax amounts are also lower in Hawaii for the $250k and $500k examples, despite Hawaii’s higher median home values.
Who benefits most from this comparison?
| Audience | Relevance of the data |
|---|---|
| Current or prospective homeowners | The effective tax rate directly affects the ongoing cost of owning a home. Homebuyers can use the rate and median tax figures to estimate annual expenses in each state. |
| Retirees | Many retirees consider property‑tax burden when choosing a relocation destination, especially if they rely on fixed incomes. Lower rates (as in Hawaii) may reduce their overall cost of living, though other cost factors (e.g., housing prices) also matter. |
| Real‑estate investors | Investors compare tax rates alongside home values and rental‑income potential. A lower tax rate can improve net operating income, but higher home prices (as in Hawaii) may offset that benefit. |
| Policy analysts | The contrast illustrates how state‑level tax policy and assessment practices yield different revenue‑generation outcomes relative to household income levels. |
The comparison is most useful for individuals or entities evaluating the ongoing tax cost of home ownership in the two states. It does not address other cost‑of‑living components (e.g., utilities, insurance, or transportation) that may also influence decision‑making.
Summary
- Effective property‑tax rate: Hawaii 0.27 % vs. North Carolina 0.70 % (Hawaii lower).
- Median annual tax: Hawaii $2,183 vs. North Carolina $1,815 (North Carolina lower in absolute dollars because of lower home values).
- Tax on $250k and $500k homes: Hawaii’s taxes are roughly 61 % lower than North Carolina’s.
According to U.S. Census Bureau data, Hawaii offers the lower property‑tax rate, while North Carolina’s lower median home values result in a slightly lower median dollar amount of tax paid. Stakeholders should weigh both rate and home‑price contexts when assessing overall property‑tax burden.
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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.