Hawaii vs Rhode Island
Property‑Tax Comparison: Hawaii vs. Rhode Island
Introduction
Both Hawaii and Rhode Island levy property taxes that fund local services such as schools, public safety, and infrastructure. The two states differ markedly in how much homeowners pay relative to the value of their homes. The data below come from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Side‑by‑Side Metrics
| Metric | Hawaii | Rhode Island |
|---|---|---|
| Effective property‑tax rate | 0.27 % | 1.32 % |
| Median home value | $808,200 | $368,800 |
| Median annual property tax | $2,183 | $4,854 |
| Annual tax on a $250,000 home | $675 | $3,291 |
| Annual tax on a $500,000 home | $1,351 | $6,581 |
| Median household income | $98,317 | $86,372 |
Sources: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State Has the Lower Property‑Tax Burden?
Winner (lower tax rate): Hawaii
- Effective tax‑rate difference: 1.05 percentage points, which is a 79.48 % lower rate than Rhode Island’s.
- Annual tax on a $250 k home: Hawaii’s $675 vs. Rhode Island’s $3,291 – a $2,616 difference.
- Annual tax on a $500 k home: Hawaii’s $1,351 vs. Rhode Island’s $6,581 – a $5,230 difference.
The lower effective property‑tax rate in Hawaii translates into substantially smaller annual tax bills for comparable home values. For that reason, Hawaii “wins” the comparison when the criterion is the amount of property tax owed.
Further details on each state’s tax structure can be found at the internal pages: Hawaii property tax and Rhode Island property tax.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Data |
|---|---|
| Current or prospective homeowners | Lower tax rates reduce the ongoing cost of home ownership; Hawaii’s rates may be more attractive for buyers on a tight budget. |
| Retirees | Fixed‑income retirees often prioritize predictable, low‑cost living expenses. Hawaii’s lower property taxes can help preserve retirement income, though overall cost‑of‑living factors (e.g., housing prices) must also be considered. |
| Real‑estate investors | Investors evaluating cash‑flow projections will see lower property‑tax outlays in Hawaii, which can improve net operating income on rental properties. |
| Policy analysts / local officials | The contrast illustrates how differing tax policies affect household financial burdens across states. |
It is important to note that property‑tax rates are only one component of total housing costs. Hawaii’s median home value ($808,200) is more than double Rhode Island’s ($368,800), which may offset the tax advantage for some buyers. Conversely, Rhode Island’s higher median household income ($86,372 vs. $98,317 in Hawaii) may affect affordability calculations.
Sources
- U.S. Census Bureau, 2023 American Community Survey (5‑year estimates) – property‑tax rates, home values, and household income.
- Internal reference pages: Hawaii property tax, Rhode Island 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.