Hawaii has Low Property Tax Rates, But . . .
Property taxes can range from being a small inconvenience to a huge hassle, depending on which state of the union you live in. WalletHub, in quoting the U.S. Census Bureau, noted that the average American household spends $2,279, per year, on property taxes. Yet, in ranking property taxes for the 50 states and District of Columbia, WalletHub said that Hawaii ranked no. 1 when it came to the least amount of property taxes paid on homes in 2019.
The effective real estate tax rate for the average Hawaiian resident is 0.27%, meaning the annual taxes at a home priced at the state median value is $1,529. Furthermore, annual taxes on a $194,000 home is $525. The flip side of the coin, however, is that the state median home value is a whopping $563,000. In other words, while Hawaiian residents end up paying less in property taxes, buying that property in the first place is pretty pricey.
New Jersey, meanwhile, was ranked 51st place, with an effective real estate tax at 2.44%, and taxes on a $194,000 home totaling $4,725 annually. The state median home price, at $321,100, means that residents of the Garden State pay $7,840 on that rate.
Another interesting factoid presented by WalletHub: Red States (those that support Republican, right-thinking candidates), tend to impose lower real estate property taxes than blue states.
Experts queried by WalletHub in connection with these metrics noted a few things. Carolyn L. DessIn, a professor at the University of Akron School of Law, pointed out that people need to consider property taxes when it comes to deciding where to live. “It’s important to remember that level of tax is also tied to level of service,” she added. “Low taxes may mean weaker street maintenance and less funding for schools.”
Meanwhile, Carson College of Business, Washington State University emeritus accounting professor Debra Sanders indicated that, while property taxes should go into a decision of where to live, so should sales and income taxes. “The total of all taxes should be considered,” Sanders noted.
For comments, questions or concerns, please contact Amy Sorter
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