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Property Taxes by State – New Jersey Is Highest In Nation

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.

Source: WalletHub

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.

 

Property Taxes by State - New Jersey Is Highest In Nation
Source: Pixabay

 

 

Source: WalletHub

Red vs. Blue States

Property-Taxes-by-State-Blue-vs-Red Property Taxes by State
Property Taxes by State

Source: WalletHub

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.

  1. Do people consider property taxes when deciding where to move? Should they?
  2. Should nonprofits pay property taxes?
  3. Should local tax policy be adjusted to rely more or less on property taxes versus other forms of taxation?
  4. Should more types of property be subject to property taxes? If yes, what types?
  5. Should certain groups of people be exempt from property taxes or be taxed at a lower rate?

Property Taxes by State