Property taxes are an essential aspect of homeownership that can vary greatly from state to state. It’s important to understand the property tax rates by state, as they have a significant impact on your real estate investment.
Whether you are buying a new home, selling your property, or simply looking to understand how real estate taxes work, this blog post will provide you with valuable information about property taxes by state.
Factors Affecting Tax Rates State to State
When it comes to property taxes, the rates can vary significantly from state to state. In order to better understand how property taxes are calculated, it’s important to have an idea about these factors.
- Property Values: States with higher property values tend to have higher property tax rates, and vice versa.
- Tax Assessment Methods: Methods used to assess tax can impact the property tax rates in a state. Some states use a market value approach, while others use an income-based approach or a hybrid of both.
- Local Government Spending: States with higher spending on local government services, such as schools and infrastructure, tend to have higher property tax rates.
- Tax Exemptions: States with higher tax deductions or exemptions, such as homestead exemptions and property tax caps, tend to have lower property tax rates.
Additionally, factors like the state’s economic climate, political factors, and the availability of state revenue sources also influence the property tax rates.
At a Glance: States Ranked by Property Tax
| State | Average Tax Rate (%) | Median Home Value ($) | Average Tax Per Household ($) |
|---|---|---|---|
| Hawaii | 0.29% | $715,900 | $2,076 |
| Alabama | 0.41% | $295,900 | $1,213 |
| Colorado | 0.51% | $624,000 | $3,182 |
| Nevada | 0.55% | $465,000 | $2,557 |
| Louisiana | 0.56% | $266,000 | $1,489 |
| South Carolina | 0.56% | $370,800 | $2,076 |
| D.C. | 0.57% | $701,895 | $4,001 |
| Delaware | 0.58% | $323,100 | $1,874 |
| Utah | 0.58% | $575,100 | $3,336 |
| West Virginia | 0.59% | $291,300 | $1,719 |
| Wyoming | 0.61% | $228,000 | $1,391 |
| Arizona | 0.62% | $471,300 | $2,922 |
| Arkansas | 0.62% | $251,900 | $1,562 |
| Idaho | 0.63% | $521,200 | $3,284 |
| Tennessee | 0.66% | $402,600 | $2,657 |
| California | 0.75% | $843,800 | $6,329 |
| Mississippi | 0.79% | $257,300 | $2,033 |
| New Mexico | 0.80% | $518,300 | $4,146 |
| North Carolina | 0.80% | $360,900 | $2,887 |
| Virginia | 0.82% | $447,500 | $3,670 |
| Indiana | 0.83% | $245,300 | $2,036 |
| Montana | 0.83% | $244,900 | $2,033 |
| Kentucky | 0.85% | $256,700 | $2,182 |
| Florida | 0.86% | $410,400 | $3,529 |
| Georgia | 0.90% | $376,700 | $3,390 |
| Oklahoma | 0.90% | $242,500 | $2,183 |
| Oregon | 0.93% | $527,600 | $4,907 |
| Washington | 0.94% | $668,400 | $6,283 |
| Missouri | 0.98% | $251,900 | $2,469 |
| North Dakota | 1.00% | $199,900 | $1,999 |
| Maryland | 1.07% | $416,800 | $4,460 |
| Minnesota | 1.11% | $349,000 | $3,874 |
| Massachusetts | 1.20% | $604,200 | $7,250 |
| Alaska | 1.22% | $371,500 | $4,532 |
| South Dakota | 1.24% | $312,700 | $3,877 |
| Maine | 1.28% | $348,600 | $4,462 |
| Kansas | 1.43% | $298,100 | $4,263 |
| Michigan | 1.48% | $249,100 | $3,687 |
| Ohio | 1.53% | $236,700 | $3,622 |
| Pennsylvania | 1.53% | $290,700 | $4,448 |
| Rhode Island | 1.53% | $429,200 | $6,567 |
| Iowa | 1.57% | $265,700 | $4,171 |
| Nebraska | 1.67% | $279,900 | $4,674 |
| New York | 1.73% | $559,900 | $9,686 |
| Wisconsin | 1.73% | $278,900 | $4,825 |
| Texas | 1.74% | $389,100 | $6,770 |
| Vermont | 1.90% | $365,100 | $6,937 |
| New Hampshire | 2.09% | $434,100 | $9,073 |
| Connecticut | 2.15% | $368,900 | $7,931 |
| Illinois | 2.23% | $286,800 | $6,396 |
| New Jersey | 2.47% | $454,500 | $11,226 |
Sources: Property Shark | Wise Voter | World Population Review
Frequently Asked Questions
1. Which state has the highest property tax?
New Jersey has the highest property tax rate in the United States, with an average of 2.47%. This means that homeowners in New Jersey pay an average of $11,226 annually in property taxes.
2. What state has the cheapest property tax?
Hawaii has the lowest property tax rate in the United States, with an average effective property tax rate of 0.29%.
3. Which USA state has no property tax?
There is no U.S. state that has completely eliminated property taxes. However, some states offer exemptions or credits for certain types of properties or individuals, such as seniors or veterans.
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