Each year, the average American household spends $2,471 on real-estate property taxes.
To find out who pays the most relative to their state, the personal-finance website WalletHub released its 2022 Property Taxes by State report.
Real-Estate Property Tax Rates by State
Source: WalletHub
| Rank (1=Lowest) | State | Effective Real-Estate Tax Rate | Annual Taxes on $217.5K Home* | State Median Home Value | Annual Taxes on Home Priced at State Median Value |
|---|---|---|---|---|---|
| 1 | Hawaii | 0.28% | $606 | $615,300 | $1,715 |
| 2 | Alabama | 0.41% | $895 | $142,700 | $587 |
| 3 | Colorado | 0.51% | $1,113 | $343,300 | $1,756 |
| 4 | Louisiana | 0.55% | $1,187 | $163,100 | $890 |
| 5 | District of Columbia | 0.56% | $1,221 | $601,500 | $3,378 |
| 6 | South Carolina | 0.57% | $1,238 | $162,300 | $924 |
| 6 | Delaware | 0.57% | $1,240 | $251,100 | $1,431 |
| 8 | West Virginia | 0.58% | $1,269 | $119,600 | $698 |
| 9 | Nevada | 0.60% | $1,310 | $267,900 | $1,614 |
| 10 | Wyoming | 0.61% | $1,319 | $220,500 | $1,337 |
| 11 | Arkansas | 0.62% | $1,358 | $127,800 | $798 |
| 12 | Utah | 0.63% | $1,362 | $279,100 | $1,748 |
| 13 | Arizona | 0.66% | $1,446 | $225,500 | $1,499 |
| 14 | Idaho | 0.69% | $1,492 | $212,300 | $1,456 |
| 15 | Tennessee | 0.71% | $1,548 | $167,200 | $1,190 |
| 16 | California | 0.76% | $1,644 | $505,000 | $3,818 |
| 17 | New Mexico | 0.80% | $1,740 | $171,400 | $1,371 |
| 18 | Mississippi | 0.81% | $1,751 | $119,000 | $958 |
| 19 | Virginia | 0.82% | $1,779 | $273,100 | $2,234 |
| 20 | Montana | 0.84% | $1,818 | $230,600 | $1,928 |
| 20 | North Carolina | 0.84% | $1,833 | $172,500 | $1,454 |
| 22 | Indiana | 0.85% | $1,853 | $141,700 | $1,207 |
| 23 | Kentucky | 0.86% | $1,866 | $141,000 | $1,210 |
| 24 | Florida | 0.89% | $1,934 | $215,300 | $1,914 |
| 25 | Oklahoma | 0.90% | $1,952 | $136,800 | $1,228 |
| 26 | Georgia | 0.92% | $2,006 | $176,000 | $1,623 |
| 27 | Missouri | 0.97% | $2,111 | $157,200 | $1,526 |
| 27 | Oregon | 0.97% | $2,116 | $312,200 | $3,037 |
| 29 | North Dakota | 0.98% | $2,138 | $193,900 | $1,906 |
| 29 | Washington | 0.98% | $2,134 | $339,000 | $3,326 |
| 31 | Maryland | 1.09% | $2,370 | $314,800 | $3,430 |
| 32 | Minnesota | 1.12% | $2,429 | $223,900 | $2,500 |
| 33 | Alaska | 1.19% | $2,599 | $270,400 | $3,231 |
| 34 | Massachusetts | 1.23% | $2,667 | $381,600 | $4,679 |
| 35 | South Dakota | 1.31% | $2,857 | $167,100 | $2,195 |
| 36 | Maine | 1.36% | $2,953 | $190,400 | $2,585 |
| 37 | Kansas | 1.41% | $3,060 | $151,900 | $2,137 |
| 38 | Michigan | 1.54% | $3,343 | $154,900 | $2,381 |
| 39 | Ohio | 1.56% | $3,390 | $145,700 | $2,271 |
| 40 | Iowa | 1.57% | $3,407 | $147,800 | $2,315 |
| 41 | Pennsylvania | 1.58% | $3,442 | $180,200 | $2,852 |
| 42 | Rhode Island | 1.63% | $3,548 | $261,900 | $4,272 |
| 43 | New York | 1.72% | $3,749 | $313,700 | $5,407 |
| 44 | Nebraska | 1.73% | $3,754 | $155,800 | $2,689 |
| 45 | Texas | 1.80% | $3,907 | $172,500 | $3,099 |
| 46 | Wisconsin | 1.85% | $4,027 | $180,600 | $3,344 |
| 47 | Vermont | 1.90% | $4,135 | $227,700 | $4,329 |
| 48 | Connecticut | 2.14% | $4,658 | $275,400 | $5,898 |
| 49 | New Hampshire | 2.18% | $4,738 | $261,700 | $5,701 |
| 50 | Illinois | 2.27% | $4,942 | $194,500 | $4,419 |
| 51 | New Jersey | 2.49% | $5,419 | $335,600 | $8,362 |
Key Property Taxes Stats
- Hawaii has the lowest real-estate tax, $606, which is 8.9 times lower than in New Jersey, the state with the highest at $5,419.
- Blue States have 31.12 percent higher real-estate property taxes, averaging $2,722, than Red States, averaging $2,076.
Methodology
To determine the states with the highest and lowest property taxes, WalletHub compared the 50 states and the District of Columbia by using U.S. Census Bureau data to determine real-estate property tax rates.
To view the full report and your state’s rank, visit wallethub.com.
Just a thought. Because property values and the salaries of people who buy them vary significantly across the country, you really need to look at the taxes required to support similarly serviced communities. For example a northern city, with snow, aging infrastructure will have higher costs than a rural town in the south. That’s not to say one is better than the other. Only that it is not possible to compare the two because the people that choose to live in both areas are different.
Thanks for sharing your thoughts with the TodaysHomeowner.com community, Mike!