Hawai’i Ranked as State with Lowest Real-Estate Property Taxes
Hawai’i was recently named as the state with the lowest real estate property taxes in a report conducted by the financial website WalletHub, titled “2016’s Property Taxes by State.”
American households spend an average of $2,127 on property taxes on their homes every year, according to the United State Census Bureau, with an additional average of $412 in states who mandated vehicle property taxes.
Wallethub compared the 50 states and the District of Columbia to find the highest and lowest property taxes. The study used U.S. Census Bureau data to determine real-estate property tax rates and by applying assumptions based on national car sales to determine vehicle property tax rates.
Hawai’i held the top rank for lowest real estate property taxes with an effective real estate tax rate of 0.28 percent. The study found that Hawai’i home owners spend $489 in annual taxes on a $176,000 home. Hawai’i’s median home value is $504,500, making the annual taxes on a median priced home $1,405.
Alabama and Louisiana rounded out the top three.
Hawai’i does not charge vehicle owners a vehicle property tax, therefore the state ranked at the top position along with 23 additional states.