Hawaii vs Texas
Property‑Tax Comparison: Hawaii vs. Texas
Intro
Both Hawaii and Texas levy property taxes that fund local services such as schools, public safety, and infrastructure. The two states differ markedly in tax rates, home values, and household incomes. The following comparison uses the most recent data from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates) to present a side‑by‑side view of key property‑tax metrics.
Side‑by‑Side Metrics
| Metric | Hawaii | Texas |
|---|---|---|
| Effective property‑tax rate | 0.27 % | 1.58 % |
| Median home value | $808,200 | $260,400 |
| Median annual property tax | $2,183 | $4,111 |
| Tax on a $250,000 home | $675 | $3,947 |
| Tax on a $500,000 home | $1,351 | $7,893 |
| Median household income | $98,317 | $76,292 |
| Hawaii property tax | ||
| Texas property tax |
All figures are drawn from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Tax?
Winner (lower tax rate): Hawaii
- Rate difference: 1.31 percentage points, which is an 82.89 % lower effective rate in Hawaii than in Texas.
- Annual tax difference on a $250,000 home: $3,272 less in Hawaii ($675 vs. $3,947).
- Annual tax difference on a $500,000 home: $6,542 less in Hawaii ($1,351 vs. $7,893).
Why Hawaii wins: The effective property‑tax rate of 0.27 % is substantially below Texas’s 1.58 %. Even though median home values are higher in Hawaii, the lower rate results in lower absolute tax bills for comparable‑price homes.
Who Is This Comparison Most Relevant For?
| Audience | Relevance of Findings |
|---|---|
| Homeowners (current or prospective) | The lower effective rate in Hawaii reduces the annual tax burden, but higher home prices may offset savings for higher‑priced properties. Texas offers lower median home values, which could make entry‑level purchases more affordable despite higher tax rates. |
| Retirees | Many retirees prioritize predictable, lower ongoing expenses. Hawaii’s lower tax rate may be advantageous, especially for those owning modest‑value homes. Texas’s higher taxes could be a larger cost factor, though lower home prices may lower the overall equity required. |
| Real‑estate investors | Investors focusing on cash‑flow may find Texas’s higher tax rate increases operating costs, whereas Hawaii’s lower rate could improve net returns, provided acquisition costs remain manageable. |
| Policy analysts | The data illustrate how state‑level tax structures interact with housing markets and income levels, highlighting the trade‑off between tax rates and median property values. |
All conclusions are based on factual data; no subjective judgments about quality of life, services, or other state‑specific factors are included.
Summary
According to U.S. Census Bureau data, Hawaii’s effective property‑tax rate of 0.27 % is considerably lower than Texas’s 1.58 %, making Hawaii the lower‑tax option for comparable home values. However, the overall cost of homeownership also depends on median home prices and household incomes, which differ substantially between the two states. The comparison is most useful for individuals evaluating the tax component of housing costs—particularly homeowners, retirees, and real‑estate investors—who need quantitative benchmarks rather than qualitative assessments.
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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.