Property Taxes by State – New Jersey Is Highest In Nation via Wallet Hub
Property taxes are insignificant to some and the bane of others’ existence. The average American household spends $2,127 on property taxes for their homes each year, according to the U.S. Census Bureau, and residents of the 27 states with vehicle property taxes shell out another $412. Considering these figures and the debt-fueled environment to which we have grown so accustomed, it should come as no surprise that roughly $11.8 billion in property taxes go unpaid each year, the National Tax Lien Association has found.
And though property taxes might appear to be a non-issue for the 32 percent of people who rent their homes, that couldn’t be further from the truth. We all pay property taxes, whether directly or indirectly, as they impact the rent we pay as well as the finances of state and local governments.
But which states pack the biggest property-tax punch, and what should residents keep in mind when it comes to meeting and ultimately minimizing their tax obligations? In search of answers, we analyzed the 50 states and the District of Columbia in terms of real-estate and vehicle property taxes. We also consulted a panel of leading property-tax experts for insights both practical and political.
|
Rank |
State |
Effective Real-Estate Tax Rate |
Annual Taxes on $176K Home* |
State Median Home Value |
Annual Taxes on Home Priced at State Median Value |
|---|---|---|---|---|---|
| 1 | Hawaii | 0.28% | $489 | $504,500 | $1,405 |
| 2 | Alabama | 0.43% | $764 | $123,800 | $538 |
| 3 | Louisiana | 0.48% | $841 | $140,400 | $672 |
| 4 | Delaware | 0.53% | $929 | $232,900 | $1,231 |
| T-5 | District of Columbia | 0.57% | $1,005 | $454,500 | $2,601 |
| T-5 | South Carolina | 0.57% | $1,009 | $137,600 | $790 |
| 7 | West Virginia | 0.59% | $1,035 | $100,200 | $590 |
| T-8 | Arkansas | 0.62% | $1,088 | $108,700 | $673 |
| T-8 | Colorado | 0.62% | $1,097 | $239,400 | $1,495 |
| T-8 | Wyoming | 0.62% | $1,094 | $189,300 | $1,179 |
| 11 | Utah | 0.69% | $1,210 | $212,500 | $1,463 |
| 12 | New Mexico | 0.72% | $1,273 | $159,300 | $1,154 |
| 13 | Tennessee | 0.75% | $1,314 | $139,900 | $1,046 |
| 14 | Idaho | 0.77% | $1,354 | $160,500 | $1,237 |
| 15 | Mississippi | 0.78% | $1,377 | $100,800 | $790 |
| 16 | Virginia | 0.80% | $1,401 | $243,500 | $1,941 |
| 17 | California | 0.81% | $1,429 | $371,400 | $3,021 |
| T-18 | Kentucky | 0.84% | $1,471 | $121,600 | $1,018 |
| T-18 | Arizona | 0.84% | $1,484 | $162,900 | $1,376 |
| 20 | North Carolina | 0.85% | $1,502 | $153,600 | $1,313 |
| T-21 | Oklahoma | 0.87% | $1,525 | $115,000 | $998 |
| T-21 | Montana | 0.87% | $1,528 | $187,600 | $1,632 |
| 23 | Indiana | 0.88% | $1,539 | $122,700 | $1,075 |
| 24 | Nevada | 0.92% | $1,618 | $167,100 | $1,539 |
| 25 | Georgia | 0.96% | $1,682 | $148,000 | $1,417 |
| 26 | Missouri | 1.00% | $1,763 | $136,700 | $1,372 |
| T-27 | Oregon | 1.08% | $1,890 | $234,100 | $2,518 |
| T-27 | Washington | 1.08% | $1,903 | $257,200 | $2,785 |
| T-27 | Maryland | 1.08% | $1,906 | $287,500 | $3,118 |
| 30 | Florida | 1.10% | $1,932 | $156,200 | $1,718 |
| 31 | Massachusetts | 1.18% | $2,075 | $329,900 | $3,896 |
| 32 | Minnesota | 1.19% | $2,091 | $185,200 | $2,204 |
| 33 | Alaska | 1.21% | $2,124 | $246,300 | $2,978 |
| 34 | North Dakota | 1.22% | $2,146 | $142,000 | $1,734 |
| 35 | Maine | 1.27% | $2,233 | $173,600 | $2,206 |
| 36 | South Dakota | 1.36% | $2,382 | $135,700 | $1,840 |
| 37 | Kansas | 1.41% | $2,478 | $129,400 | $1,825 |
| 38 | Iowa | 1.47% | $2,582 | $126,300 | $1,856 |
| 39 | Pennsylvania | 1.51% | $2,647 | $164,900 | $2,484 |
| 40 | Ohio | 1.55% | $2,729 | $129,600 | $2,013 |
| 41 | New York | 1.58% | $2,773 | $283,700 | $4,478 |
| 42 | Rhode Island | 1.61% | $2,829 | $241,200 | $3,883 |
| 43 | Vermont | 1.72% | $3,021 | $216,200 | $3,717 |
| 44 | Michigan | 1.83% | $3,220 | $120,200 | $2,203 |
| 45 | Nebraska | 1.88% | $3,301 | $130,100 | $2,444 |
| 46 | Connecticut | 1.91% | $3,357 | $274,500 | $5,244 |
| 47 | Texas | 1.93% | $3,392 | $131,400 | $2,537 |
| 48 | Wisconsin | 1.97% | $3,459 | $165,900 | $3,266 |
| 49 | New Hampshire | 2.10% | $3,698 | $237,400 | $4,996 |
| 50 | Illinois | 2.25% | $3,959 | $175,700 | $3,959 |
| 51 | New Jersey | 2.29% | $4,029 | $319,900 | $7,335 |
*$175,700 is the median home value in the U.S.
Red vs. Blue States
|
Rank |
State |
Effective Vehicle Tax Rate |
Annual Taxes on $23K Car* |
|---|---|---|---|
| T-1 | Hawaii | 0.00% | $0 |
| T-1 | Louisiana | 0.00% | $0 |
| T-1 | Delaware | 0.00% | $0 |
| T-1 | District of Columbia | 0.00% | $0 |
| T-1 | New Mexico | 0.00% | $0 |
| T-1 | Tennessee | 0.00% | $0 |
| T-1 | Idaho | 0.00% | $0 |
| T-1 | Oklahoma | 0.00% | $0 |
| T-1 | Georgia | 0.00% | $0 |
| T-1 | Oregon | 0.00% | $0 |
| T-1 | Washington | 0.00% | $0 |
| T-1 | Maryland | 0.00% | $0 |
| T-1 | Florida | 0.00% | $0 |
| T-1 | Alaska | 0.00% | $0 |
| T-1 | North Dakota | 0.00% | $0 |
| T-1 | South Dakota | 0.00% | $0 |
| T-1 | Pennsylvania | 0.00% | $0 |
| T-1 | Ohio | 0.00% | $0 |
| T-1 | New York | 0.00% | $0 |
| T-1 | Vermont | 0.00% | $0 |
| T-1 | Texas | 0.00% | $0 |
| T-1 | Wisconsin | 0.00% | $0 |
| T-1 | Illinois | 0.00% | $0 |
| T-1 | New Jersey | 0.00% | $0 |
| 25 | Montana | 0.37% | $86 |
| 26 | Michigan | 0.51% | $118 |
| 27 | California | 0.65% | $150 |
| 28 | Utah | 0.65% | $150 |
| 29 | Alabama | 0.75% | $174 |
| 30 | Iowa | 1.00% | $231 |
| 31 | Arkansas | 1.04% | $240 |
| 32 | Kentucky | 1.25% | $288 |
| 33 | Minnesota | 1.30% | $299 |
| 34 | North Carolina | 1.30% | $299 |
| 35 | Indiana | 1.30% | $300 |
| 36 | Nevada | 1.40% | $323 |
| 37 | Nebraska | 1.47% | $340 |
| 38 | Arizona | 1.68% | $388 |
| 39 | West Virginia | 1.70% | $393 |
| 40 | Colorado | 1.79% | $412 |
| T-41 | Wyoming | 1.80% | $415 |
| T-41 | New Hampshire | 1.80% | $415 |
| 43 | Kansas | 1.85% | $426 |
| 44 | Massachusetts | 2.25% | $519 |
| 45 | South Carolina | 2.26% | $520 |
| 46 | Maine | 2.40% | $554 |
| 47 | Missouri | 2.63% | $606 |
| 48 | Connecticut | 2.78% | $642 |
| 49 | Mississippi | 3.35% | $773 |
| 50 | Virginia | 4.19% | $966 |
| 51 | Rhode Island | 4.76% | $1,099 |
*$23,070 is the value of a 2016 Toyota Camry LE four-door sedan, the highest-selling car of 2015.
Property Taxes by State – Ask the Experts
Property taxes are an extremely important issue considering their impact on all of our lives. But how should we incorporate them into our financial decision making? And how should policy makers across the U.S. approach them as well? For answers to those questions and more, we consulted a panel of leading tax and public-policy experts. You can check out their bios and responses to key questions below.
- Do people consider property taxes when deciding where to move? Should they?
- Should nonprofits pay property taxes?
- Should local tax policy be adjusted to rely more or less on property taxes versus other forms of taxation?
- Should more types of property be subject to property taxes? If yes, what types?
- Should certain groups of people be exempt from property taxes or be taxed at a lower rate?
Property Taxes by State
