Property rates differ from one state to another. While an individual spends an average of $8000 yearly on property taxes in some states, others spend as little as $1715 on average yearly. According to the current US Census Bureau data, nearly two-thirds of American citizens are homeowners, subject to property rates. As such, many homebuyers prioritize property taxes as one of the most critical considerations when deciding where to settle.
However, homeowners are not the only ones subject to property taxes. Renters may not pay them directly, but landlords certainly distribute property expenses on their tenants’ rent. Before you get a moving company to get you into that new home, check out this list of states with the highest property rates in the US.
New Jersey has the highest property taxes in the US as of now. The average annual property tax paid in the state is $8314, with an average effective property tax of 2.21%. Its average home value is also unenviably high. It has a record of its own since no other state even breaks the $7000 average annual property taxes.
Illinois comes second with an effective tax rate of more than 2%. However, it has a forgiving average home value that reduces the average annual property taxes paid to $4476.
New Hampshire, which is right next to Vermont, has an average effective tax of 2.03%. This is another state with a property tax rate soaring above 2%. Its average home value is slightly higher than its neighbor Vermont. That leaves New Hampshire one of the only two states with an average annual property tax paid above $6000.
Vermont was the initial state to reach an average effective property tax of 1.8%, so it is not new to the pricey side of every list having to do with the most costly cities to live in the US. Its average annual property tax paid is $4993.
In Wisconsin, the home value is less expensive than in the above four states. It is also among the four states whose average annual property taxes paid are less than $4000. Its average effective tax is 1.73% and its average yearly property tax paid is $3607.
To the northeast again is Connecticut, with its average annual property taxes paid soaring at $5099. It is just costly enough to attain a position in the list of the four states whose yearly average property taxes paid are above $5000.
Texas is new on the list of the highest property rates in the US and holds the last spot on the list of states with a tax rate below 1.7%. It has an average effective property tax rate of 1.69%, with an average annual property tax paid of $3734.
Nebraska has an average effective property tax of 1.65%, with its average annual property tax paid at $3124. It ranks second on the list of states with the cheapest average home value, only behind Ohio.
Ohio has an average effective property tax of 1.62%, while its average annual property tax paid is $2693. It is the number one state with the cheapest average home value under $200,000.
The property taxes of Rhode Island are also high, with its average annual property tax paid soaring at $5163. Its steep home prices mainly influence the high.