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December 5, 2016

Where Owners Pay the Most, Least in Property Taxes

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Where Owners Pay the Most, Least in Property Taxes

With tax burdens on the minds of many Americans as tax season approaches and election issues gain steam, one analysis of property taxes in the 50 states finds a wide spread of rates, including some surprising results.

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24/7 Wall St. recently analyzed data from the Tax Foundation to review property taxes paid in each state as a percentage of home values to find which state’s home owners pay the most and least in property taxes.

The study found:

States With the Lowest Property Taxes

Hawaii (ranked No. 50 out of 50)

  • Effective property tax rate: 0.28%
  • Median home value: $528,000 (the highest)
  • Property taxes paid per tax return: $1,993 (5th lowest)

Alabama (ranked No. 49)

  • Effective property tax rate: 0.43%
  • Median home value: $125,600 (7th lowest)
  • Property taxes paid per tax return: $1,352 (the lowest)

Louisiana (ranked No. 48)

  • Effective property tax rate: 0.51%
  • Median home value: $143,600 (18th lowest)
  • Property taxes paid per tax return: $2,076 (7th lowest)

Delaware (ranked No. 47)

  • Effective property tax rate: 0.55%
  • Median home value: $230,500 (15th highest)
  • Property taxes paid per tax return: $2,532 (16th lowest)

South Carolina (ranked No. 46)

  • Effective property tax rate: 0.57%
  • Median home value: $140,000 (15th lowest)
  • Property taxes paid per tax return: $2,041 (6th lowest)

West Virginia (ranked No. 45)

  • Effective property tax rate: 0.59%
  • Median home value: $103,900 (the lowest)
  • Property taxes paid per tax return: $1,546 (2nd lowest)

 

States with the Highest Property Taxes

New Jersey (ranked No. 1 out of 50)

  • Effective property tax rate: 2.38%
  • Median home value: $313,200 (4th highest)
  • Property taxes paid per tax return: $8,943 (the highest)

Illinois (ranked No. 2)

  • Effective property tax rate: 2.32%
  • Median home value: $171,900 (24th highest)
  • Property taxes paid per tax return: $6,357 (5th highest)

New Hampshire (ranked No. 3)

  • Effective property tax rate: 2.15%
  • Median home value: $236,400 (13th highest)
  • Property taxes paid per tax return: $6,954 (4th highest)

Connecticut (ranked No. 4)

  • Effective property tax rate: 1.98%
  • Median home value: $267,200 (7th highest)
  • Property taxes paid per tax return: $7,294 (3rd highest)

Wisconsin (ranked No. 5)

  • Effective property tax rate: 1.96%
  • Median home value: $164,700 (24th lowest)
  • Property taxes paid per tax return: $4,622 (12th highest)

 

The study determined a variety of reasons that some states pay more and others less. Check out more about the study at 24/7 Wall St. and view the full rankings of the 50 states.

Source: “States with the Highest (and Lowest) Property Taxes,” 24/7 Wall St. (Feb. 8, 2016)