Hawaii vs South Dakota
Property‑Tax Comparison: Hawaii vs. South Dakota
Summary
Both Hawaii and South Dakota have relatively low median home values compared with the national average, but their property‑tax structures differ markedly. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Hawaii’s effective property‑tax rate of 0.27 % is substantially lower than South Dakota’s 1.09 %. The lower rate translates into lower annual taxes for comparable home prices, even though Hawaii’s median home value is more than three times that of South Dakota.
Side‑by‑Side Metrics
| Metric | Hawaii | South Dakota |
|---|---|---|
| Effective property‑tax rate | 0.27 % | 1.09 % |
| Median home value | $808,200 | $236,800 |
| Median annual property tax | $2,183 | $2,590 |
| Property tax on a $250,000 home | $675 | $2,735 |
| Property tax on a $500,000 home | $1,351 | $5,469 |
| Median household income | $98,317 | $72,421 |
All figures are from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Who Wins on Property Tax?
Winner (lower tax burden): Hawaii
Why:
- Hawaii’s effective tax rate (0.27 %) is 0.82 percentage points lower than South Dakota’s 1.09 %.
- Relative to South Dakota, Hawaii’s rate is about 75 % lower (0.82 % ÷ 1.09 % ≈ 0.753).
- For a $250,000 home, the annual tax in Hawaii is $2,060 less than in South Dakota ($675 vs. $2,735).
- For a $500,000 home, the annual tax in Hawaii is $4,118 less ($1,351 vs. $5,469).
Because the tax burden is calculated as a percentage of assessed value, the lower rate in Hawaii yields lower absolute taxes across the price points presented, despite the state’s higher median home values.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of Findings |
|---|---|
| Current homeowners | Those evaluating the long‑term cost of owning a home in each state can see that, on a per‑dollar basis, Hawaii imposes a smaller property‑tax charge. |
| Prospective homebuyers | Buyers comparing purchase prices with ongoing tax expenses will find Hawaii’s lower rate advantageous, especially for higher‑priced properties. |
| Retirees and fixed‑income households | Lower property taxes can reduce overall cost of living; however, the higher median home price in Hawaii may offset tax savings for those on limited budgets. |
| Investors | Investors focused on cash‑flow after taxes may prefer South Dakota’s higher median home value and higher tax revenue, which can support local services and infrastructure. |
| Policy analysts | The data illustrate how differing tax rates affect revenue generation relative to property values and household incomes in the two states. |
The comparison is factual and does not constitute financial advice; individuals should consider all cost components (e.g., insurance, utilities, state income tax) when assessing overall affordability.
Further Reading
- Detailed information on Hawaii’s property‑tax system: Hawaii property tax
- Detailed information on South Dakota’s property‑tax system: South Dakota property tax
Based on the most recent ACS estimates, the figures above reflect the best available data as of 2023.
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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.