Hawaii vs Tennessee
Property Tax Comparison: Hawaii vs Tennessee
Intro
Both Hawaii and Tennessee levy property taxes that fund local services such as schools, public safety, and infrastructure. 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 comparison presents the key metrics side‑by‑side and identifies which state has the lower property tax burden.
Side‑by‑Side Metrics
| Metric | Hawaii | Tennessee |
|---|---|---|
| Effective property tax rate | 0.27 % | 0.55 % |
| Median home value | $808,200 | $256,800 |
| Median annual property tax | $2,183 | $1,400 |
| Tax on a $250,000 home | $675 | $1,363 |
| Tax on a $500,000 home | $1,351 | $2,726 |
| Median household income | $98,317 | $67,097 |
Sources: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Tax
- Lower effective tax rate: Hawaii (0.27 % vs. 0.55 %).
- Tax‑rate difference: 0.28 percentage points, which is a 50.46 % lower rate than Tennessee’s.
- Annual tax difference on a $250 k home: $688 less in Hawaii ($1,363 – $675).
- Annual tax difference on a $500 k home: $1,375 less in Hawaii ($2,726 – $1,351).
Because the comparison is based on the effective property tax rate, Hawaii is the winner for having the lower rate. The lower rate translates into smaller annual tax bills for comparable property values.
Who Might Benefit Most from This Comparison
| Audience | Relevance of Hawaii’s Tax Structure | Relevance of Tennessee’s Tax Structure |
|---|---|---|
| Current homeowners | Lower annual taxes on existing high‑value homes, but the median home price in Hawaii is substantially higher, which may offset the lower rate for many buyers. | Higher tax rate but lower median home prices, potentially resulting in a comparable or lower overall tax burden for lower‑priced properties. |
| Prospective homebuyers | May find the lower rate attractive if planning to purchase a high‑value property; must also consider higher home prices and higher median income levels. | More affordable median home values; even with a higher rate, the absolute tax amount can be lower for modest‑priced homes. |
| Retirees | Lower effective tax rate can reduce the cost of owning a residence, but the high median home values may require a larger initial investment. | Lower home prices may make entry into homeownership easier; however, the higher rate results in a higher percentage of home value paid annually. |
| Investors | Lower tax rate improves cash‑flow on high‑value rental properties; property appreciation trends in Hawaii also influence overall returns. | Higher tax rate but lower acquisition costs; cash‑flow calculations must factor in the higher percentage tax. |
In each case, the decision should weigh both the tax rate and the underlying property values, as well as income levels and personal financial goals.
Additional Resources
- Detailed information on Hawaii’s property tax system: Hawaii property tax
- Detailed information on Tennessee’s property tax system: Tennessee property tax
Based on the most recent ACS estimates, these figures represent state‑wide medians and rates; local variations (e.g., county or city assessments) can lead to different outcomes for individual properties.
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.