Hawaii Maintains Lowest Property Tax Rate in U.S. Despite High Home Values
Hawaii continues to hold the distinction of having the lowest effective property tax rate in the United States, with homeowners paying approximately 0.29% of their home's value annually. This rate is at the bottom of the national range tracked by the Tax Foundation. This structural advantage is attributed to Hawaii's unique administrative setup, where counties manage property taxes, and the state operates a single statewide public school system funded at the state level. This removes a significant cost driver that typically pushes local property levies higher in other states. Additionally, Hawaii generates substantial revenue through its general excise tax, which broadly applies to goods and services, and through taxes on tourism and transient accommodations. These alternative revenue streams reduce the pressure on counties to increase homeowner property tax rates to fund essential services. While the percentage rate is low, the high median home values in Hawaii, particularly on islands like Oahu and Maui ...
