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Time to Move? These 5 States Have the Highest Property Taxes

5 States with Highest Property Taxes
Image: Creative Commons.

Property taxes (for overall lowest taxes, check out our analysis here) are often a consideration when Americans decide where to live, and where to purchase a home. And the amounts of those taxes have been known to differ greatly from state to state.

WalletHub, earlier this year, examined which states have the highest and lowest property taxes.

According to those rankings, New Jersey has the highest property tax of any U.S. state, with an “effective real estate tax rate” of 2.49 percent. $217,500, per WalletHub, is the median home value in the U.S, and New Jersey homeowners pay an average of $5,419 on a house of that value. The median home value in New Jersey is $335,600.

Why so high in New Jersey? NJ.com looked at several reasons, including population density, high labor costs, the high cost of living, and that property taxes pay for most government costs in New Jersey.

Second, per the survey, is Illinois, where the effective real estate tax rate is 2.27 percent, with an average tax on a home with the median home value is $4,942. The average home value in that state is $194,500.

Third is New Hampshire, where the effective real estate tax rate is 2.18 percent, with the average tax on a median home listed at $4,738. The average home value in the Granite State is $261,700.

Fourth is Connecticut, with an effective real estate tax rate of 2.14 percent and an average tax on a home with median home value is $4,658. The average home value in Connecticut is $275,400. Those four states are the only ones with an effective real estate tax rate of over 2 percent.

Fifth is Vermont, where the effective real estate tax rate is 1.90 percent. The average tax on a home there with median home value is $4,135.

Rounding out the top ten are Wisconsin, Texas, Nebraska, New York, and Rhode Island.

The states with the lowest property tax rates are Hawaii, Alabama, Colorado, and Louisiana, followed by the District of Columbia. After that are South Carolina, Delaware, West Virginia, Nevada and Wyoming.

A few caveats apply: These are property taxes only, and not general state income taxes, which are a separate category. And the chart was made in February, and there’s a chance the tax rates have changed in some of those states.

WalletHub also looked at the states with vehicle property tax rates. Nearly half the country, 24 states, do not have any such tax, while Louisiana, Michigan, California, and Alabama, the tax is under one percent. The state with the highest such tax is Virginia, with 4.05 percent, while the car taxes in Rhode Island and Mississippi are over three percent.

 Stephen Silver, a technology writer for The National Interest, is a journalist, essayist and film critic, who is also a contributor to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.

Written By

Stephen Silver is a journalist, essayist, and film critic, who is also a contributor to Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review, and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.

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