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Property Tax Funding Blog

Property Tax Rates by State

Posted by Joe Thompson on Wed, Oct 05, 2016 @ 09:10 AM

On the whole, property tax rates have been increasing over time. The snapshot below shows the states with the highest property tax rates as opposed to those with lower ones. Ever wondered where your state stands? The bluer the state, the lower the tax rate and conversely gray signifies a higher rate. 

 property_tax_rates_by_state.jpg

As is stands today, New Jersey is the state with the highest property tax rate as compared to every other state in the US. This Northeastern state is thought to be the No.1 worst state for property tax by Wallet Hub, with an effective rate of 2.29%. That means, you pay approximately $4,029 annually towards property tax based on the national median home value of $176,000. In reality, most New Jerseyans pay a lot more, as the state median home value in New Jersey is a whopping $319,900, bringing the average annual property tax up to $7,335. Illinois is in next place with the second highest property tax rates at 2.25%. Even so, Illinois’ real estate tax bill is still 46% lower than New Jersey! New Hampshire comes third, and with soaring home values, you are sure to pay over $4,000 in real estate tax. Note that these three states are the only ones to have crossed the 2% rate barrier. See where your state ranks in terms of property tax rates through this informative table below with states arranged in ascending order of their property tax rates:  

 

Rank 

State

Property Tax Rate

Annual Taxes on $176K Home

1

Hawaii

0.28%

$489

2

Alabama

0.43%

$764

3

Louisiana

0.48%

$841

4

Delaware

0.53%

$929

5

District of Columbia

0.57%

$1,005

5

South Carolina

0.57%

$1,009

7

West Virginia

0.59%

$1,035

8

Arkansas

0.62%

$1,088

8

Colorado

0.62%

$1,097

8

Wyoming

0.62%

$1,094

11

Utah

0.69%

$1,210

12

New Mexico

0.72%

$1,273

13

Tennessee

0.75%

$1,314

14

Idaho

0.77%

$1,354

15

Mississippi

0.78%

$1,377

16

Virginia

0.80%

$1,401

17

California

0.81%

$1,429

18

Kentucky

0.84%

$1,471

18

Arizona

0.84%

$1,484

20

North Carolina

0.85%

$1,502

21

Oklahoma

0.87%

$1,525

21

Montana

0.87%

$1,528

23

Indiana

0.88%

$1,539

24

Nevada

0.92%

$1,618

25

Georgia

0.96%

$1,682

26

Missouri

1.00%

$1,763

27

Oregon

1.08%

$1,890

27

Washington

1.08%

$1,903

27

Maryland

1.08%

$1,906

30

Florida

1.10%

$1,932

31

Massachusetts

1.18%

$2,075

32

Minnesota

1.19%

$2,091

33

Alaska

1.21%

$2,124

34

North Dakota

1.22%

$2,146

35

Maine

1.27%

$2,233

36

South Dakota

1.36%

$2,382

37

Kansas

1.41%

$2,478

38

Iowa

1.47%

$2,582

39

Pennsylvania

1.51%

$2,647

40

Ohio

1.55%

$2,729

41

New York

1.58%

$2,773

42

Rhode Island

1.61%

$2,829

43

Vermont

1.72%

$3,021

44

Michigan

1.83%

$3,220

45

Nebraska

1.88%

$3,301

46

Connecticut

1.91%

$3,357

47

Texas

1.93%

$3,392

48

Wisconsin

1.97%

$3,459

49

New Hampshire

2.10%

$3,698

50

Illinois

2.25%

$3,959

51

New Jersey

2.29%

$4,029

 

It’s also worth noting that the annual taxes are calculated on the national median home value of $176,000. In a lot of states the state median home value is a lot more or somewhat less. This means that you could actually end up paying more or less in taxes depending on your home value. For example, a home in Hawaii is averagely valued at $504,500 as opposed to a home in Delaware at $232,900. So even though Hawaii’s tax rate is lower than that of Delaware’s by 0.25%, someone if Hawaii would probably end up paying more if comparing taxes when based on homes priced at the state median value. If you’re struggling to pay your property tax, then consider a property tax loan to ease the burden.

 

Data aggregated from WalletHub.  

Topics: property taxes