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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

1Hawaii0.28%$489$504,500$1,405
2Alabama0.43%$764$123,800$538
3Louisiana0.48%$841$140,400$672
4Delaware0.53%$929$232,900$1,231
T-5District of Columbia0.57%$1,005$454,500$2,601
T-5South Carolina0.57%$1,009$137,600$790
7West Virginia0.59%$1,035$100,200$590
T-8Arkansas0.62%$1,088$108,700$673
T-8Colorado0.62%$1,097$239,400$1,495
T-8Wyoming0.62%$1,094$189,300$1,179
11Utah0.69%$1,210$212,500$1,463
12New Mexico0.72%$1,273$159,300$1,154
13Tennessee0.75%$1,314$139,900$1,046
14Idaho0.77%$1,354$160,500$1,237
15Mississippi0.78%$1,377$100,800$790
16Virginia0.80%$1,401$243,500$1,941
17California0.81%$1,429$371,400$3,021
T-18Kentucky0.84%$1,471$121,600$1,018
T-18Arizona0.84%$1,484$162,900$1,376
20North Carolina0.85%$1,502$153,600$1,313
T-21Oklahoma0.87%$1,525$115,000$998
T-21Montana0.87%$1,528$187,600$1,632
23Indiana0.88%$1,539$122,700$1,075
24Nevada0.92%$1,618$167,100$1,539
25Georgia0.96%$1,682$148,000$1,417
26Missouri1.00%$1,763$136,700$1,372
T-27Oregon1.08%$1,890$234,100$2,518
T-27Washington1.08%$1,903$257,200$2,785
T-27Maryland1.08%$1,906$287,500$3,118
30Florida1.10%$1,932$156,200$1,718
31Massachusetts1.18%$2,075$329,900$3,896
32Minnesota1.19%$2,091$185,200$2,204
33Alaska1.21%$2,124$246,300$2,978
34North Dakota1.22%$2,146$142,000$1,734
35Maine1.27%$2,233$173,600$2,206
36South Dakota1.36%$2,382$135,700$1,840
37Kansas1.41%$2,478$129,400$1,825
38Iowa1.47%$2,582$126,300$1,856
39Pennsylvania1.51%$2,647$164,900$2,484
40Ohio1.55%$2,729$129,600$2,013
41New York1.58%$2,773$283,700$4,478
42Rhode Island1.61%$2,829$241,200$3,883
43Vermont1.72%$3,021$216,200$3,717
44Michigan1.83%$3,220$120,200$2,203
45Nebraska1.88%$3,301$130,100$2,444
46Connecticut1.91%$3,357$274,500$5,244
47Texas1.93%$3,392$131,400$2,537
48Wisconsin1.97%$3,459$165,900$3,266
49New Hampshire2.10%$3,698$237,400$4,996
50Illinois2.25%$3,959$175,700$3,959
51New Jersey2.29%$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-1Hawaii0.00%$0
T-1Louisiana0.00%$0
T-1Delaware0.00%$0
T-1District of Columbia0.00%$0
T-1New Mexico0.00%$0
T-1Tennessee0.00%$0
T-1Idaho0.00%$0
T-1Oklahoma0.00%$0
T-1Georgia0.00%$0
T-1Oregon0.00%$0
T-1Washington0.00%$0
T-1Maryland0.00%$0
T-1Florida0.00%$0
T-1Alaska0.00%$0
T-1North Dakota0.00%$0
T-1South Dakota0.00%$0
T-1Pennsylvania0.00%$0
T-1Ohio0.00%$0
T-1New York0.00%$0
T-1Vermont0.00%$0
T-1Texas0.00%$0
T-1Wisconsin0.00%$0
T-1Illinois0.00%$0
T-1New Jersey0.00%$0
25Montana0.37%$86
26Michigan0.51%$118
27California0.65%$150
28Utah0.65%$150
29Alabama0.75%$174
30Iowa1.00%$231
31Arkansas1.04%$240
32Kentucky1.25%$288
33Minnesota1.30%$299
34North Carolina1.30%$299
35Indiana1.30%$300
36Nevada1.40%$323
37Nebraska1.47%$340
38Arizona1.68%$388
39West Virginia1.70%$393
40Colorado1.79%$412
T-41Wyoming1.80%$415
T-41New Hampshire1.80%$415
43Kansas1.85%$426
44Massachusetts2.25%$519
45South Carolina2.26%$520
46Maine2.40%$554
47Missouri2.63%$606
48Connecticut2.78%$642
49Mississippi3.35%$773
50Virginia4.19%$966
51Rhode Island4.76%$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