These Are The States With the Highest Property Taxes in the US

During the early phase of the pandemic, there was a significant increase in home sales across the United States. This surge in homeownership was the most substantial quarterly increase in homeownership rates since record-keeping began in the mid-1960s, with the rate rising from 65.3 percent to 67.9 percent between the first and second quarters of 2020. While owning a home has many advantages compared to renting, it also comes with additional costs like property taxes, which are the most significant of these costs.

Property taxes, which are typically imposed locally by entities like cities, counties, or school districts, are levied on land and residential structures. State governments may also impose supplementary taxes on personal belongings like cars or boats.

Property taxes serve as a crucial source of funding for public services like education, law enforcement, and infrastructure improvements. In fact, they constitute the largest source of state and local tax revenue in the United States, surpassing other taxes like sales and income taxes.

The exact percentage of tax revenue generated from property taxes varies from state to state, ranging from 16.8% to 64.0%. The amount that individuals pay in property taxes every year is determined by the local property tax rate and the assessed value of their property. For example, if a single-family home is valued at $200,000 and the local property tax rate is 1%, the property tax bill would amount to $2,000 annually.

There are significant differences in home values and property tax rates across the United States. This has resulted in some Americans paying thousands of dollars more each year in certain regions compared to others. CEOWORLD magazine has compiled a list of the states where people pay the highest property taxes, using data from the Tax Foundation, an independent non-profit tax policy research organization. The states are ranked according to the effective property tax rate, which is the average amount paid in property taxes as a percentage of the property value in 2021. The national average effective property tax rate is 1.1 percent, but this can vary from as low as 0.32 percent to as high as 2.23 percent, depending on the state.

It’s important to note that lower property tax rates don’t necessarily mean a smaller tax bill. For instance, Hawaii boasts the lowest average property tax rate among all states at 0.32%. However, Hawaii also has the highest home values in the nation and as a result, the state and local property tax collections in Hawaii are approximately $1,556 per person, which is more than what is collected in 22 other states. In various states, where the effective property tax rate is high, the per capita property tax collections can amount to over $2,500 per year.

1. New Jersey

• Effective property tax rate: 2.23%
• Property tax collections per capita: $3,431 (the highest)
• Median home value: $389,800 (8th highest)
• Median household income: $89,296 (3rd highest)
• Property tax as a share of state and local tax revenue: 45.3% (4th highest)

2. Illinois

• Effective property tax rate: 2.08%
• Property tax collections per capita: $2,268 (10th highest)
• Median home value: $231,500 (21st lowest)
• Median household income: $72,205 (17th highest)
• Property tax as a share of state and local tax revenue: 35.4% (16th highest)

3. New Hampshire

• Effective property tax rate: 1.93%
• Property tax collections per capita: $3,285 (3rd highest)
• Median home value: $345,200 (14th highest)
• Median household income: $88,465 (4th highest)
• Property tax as a share of state and local tax revenue: 64.0% (the highest)

4. Vermont

• Effective property tax rate: 1.83%
• Property tax collections per capita: $2,860 (6th highest)
• Median home value: $271,500 (23rd highest)
• Median household income: $72,431 (16th highest)
• Property tax as a share of state and local tax revenue: 44.3% (6th highest)

5. Connecticut

• Effective property tax rate: 1.79%
• Property tax collections per capita: $3,295 (2nd highest)
• Median home value: $311,500 (18th highest)
• Median household income: $83,771 (8th highest)
• Property tax as a share of state and local tax revenue: 39.0% (10th highest)

6. Texas

• Effective property tax rate: 1.68%
• Property tax collections per capita: $2,216 (11th highest)
• Median home value: $237,400 (24th lowest)
• Median household income: $66,963 (23rd highest)
• Property tax as a share of state and local tax revenue: 46.7% (3rd highest)

7. Nebraska

• Effective property tax rate: 1.63%
• Property tax collections per capita: $2,088 (13th highest)
• Median home value: $204,900 (14th lowest)
• Median household income: $66,817 (24th highest)
• Property tax as a share of state and local tax revenue: 36.9% (13th highest)

8. Wisconsin

• Effective property tax rate: 1.61%
• Property tax collections per capita: $1,717 (23rd highest)
• Median home value: $230,700 (20th lowest)
• Median household income: $67,125 (22nd highest)
• Property tax as a share of state and local tax revenue: 32.6% (23rd highest)

9. Ohio

• Effective property tax rate: 1.59%
• Property tax collections per capita: $1,458 (20th lowest)
• Median home value: $180,200 (8th lowest)
• Median household income: $62,262 (13th lowest)
• Property tax as a share of state and local tax revenue: 30.0% (25th lowest)

10. Iowa

• Effective property tax rate: 1.52%
• Property tax collections per capita: $1,806 (17th highest)
• Median home value: $174,400 (7th lowest)
• Median household income: $65,600 (21st lowest)
• Property tax as a share of state and local tax revenue: 33.2% (19th highest)

11. Pennsylvania

• Effective property tax rate: 1.49%
• Property tax collections per capita: $1,644 (25th highest)
• Median home value: $222,300 (18th lowest)
• Median household income: $68,957 (21st highest)
• Property tax as a share of state and local tax revenue: 29.6% (24th lowest)

12. New York

• Effective property tax rate: 1.40%
• Property tax collections per capita: $3,118 (4th highest)
• Median home value: $368,800 (12th highest)
• Median household income: $74,314 (14th highest)
• Property tax as a share of state and local tax revenue: 31.4% (25th highest)

13. Rhode Island

• Effective property tax rate: 1.40%
• Property tax collections per capita: $2,449 (8th highest)
• Median home value: $348,100 (13th highest)
• Median household income: $74,008 (15th highest)
• Property tax as a share of state and local tax revenue: 42.7% (7th highest)

14. Michigan

• Effective property tax rate: 1.38%
• Property tax collections per capita: $1,594 (24th lowest)
• Median home value: $199,100 (13th lowest)
• Median household income: $63,498 (17th lowest)
• Property tax as a share of state and local tax revenue: 37.4% (12th highest)

15. Kansas

• Effective property tax rate: 1.34%
• Property tax collections per capita: $1,712 (24th highest)
• Median home value: $183,800 (10th lowest)
• Median household income: $64,124 (18th lowest)
• Property tax as a share of state and local tax revenue: 32.9% (20th highest)

16. Maine

• Effective property tax rate: 1.24%
• Property tax collections per capita: $2,862 (5th highest)
• Median home value: $252,100 (25th highest)
• Median household income: $64,767 (19th lowest)
• Property tax as a share of state and local tax revenue: 44.6% (5th highest)

17. South Dakota

• Effective property tax rate: 1.17%
• Property tax collections per capita: $1,606 (25th lowest)
• Median home value: $219,900 (17th lowest)
• Median household income: $66,143 (22nd lowest)
• Property tax as a share of state and local tax revenue: 36.0% (15th highest)

18. Massachusetts

• Effective property tax rate: 1.14%
• Property tax collections per capita: $2,638 (7th highest)
• Median home value: $480,600 (4th highest)
• Median household income: $89,645 (2nd highest)
• Property tax as a share of state and local tax revenue: 36.3% (14th highest)

19. Minnesota

• Effective property tax rate: 1.11%
• Property tax collections per capita: $1,776 (19th highest)
• Median home value: $285,400 (22nd highest)
• Median household income: $77,720 (13th highest)
• Property tax as a share of state and local tax revenue: 27.3% (17th lowest)

20. Maryland

• Effective property tax rate: 1.05%
• Property tax collections per capita: $1,744 (20th highest)
• Median home value: $370,800 (10th highest)
• Median household income: $90,203 (the highest)
• Property tax as a share of state and local tax revenue: 25.6% (14th lowest)

21. Alaska

Effective property tax rate: 1.04%

Property tax collections per capita: $2,276 (9th highest)

Median home value: $304,900 (19th highest)

Median household income: $77,845 (12th highest)

Property tax as a share of state and local tax revenue: 50.3% (2nd highest)

22. Missouri

• Effective property tax rate: 1.01%
• Property tax collections per capita: $1,114 (11th lowest)
• Median home value: $198,300 (12th lowest)
• Median household income: $61,847 (11th lowest)
• Property tax as a share of state and local tax revenue: 28.1% (20th lowest)

23. North Dakota

• Effective property tax rate: 0.98%
• Property tax collections per capita: $1,538 (21st lowest)
• Median home value: $224,400 (19th lowest)
• Median household income: $66,519 (25th lowest)
• Property tax as a share of state and local tax revenue: 20.4% (5th lowest)

24. Oregon

• Effective property tax rate: 0.93%
• Property tax collections per capita: $1,730 (21st highest)
• Median home value: $422,700 (6th highest)
• Median household income: $71,562 (18th highest)
• Property tax as a share of state and local tax revenue: 33.3% (18th highest)

25. Georgia

• Effective property tax rate: 0.92%
• Property tax collections per capita: $1,336 (19th lowest)
• Median home value: $249,700 (25th lowest)
• Median household income: $66,559 (25th highest)
• Property tax as a share of state and local tax revenue: 32.8% (21st highest)

26. Florida

• Effective property tax rate: 0.91%
• Property tax collections per capita: $1,541 (22nd lowest)
• Median home value: $290,700 (21st highest)
• Median household income: $63,062 (15th lowest)
• Property tax as a share of state and local tax revenue: 38.1% (11th highest)

27. Oklahoma

• Effective property tax rate: 0.89%
• Property tax collections per capita: $883 (5th lowest)
• Median home value: $168,500 (4th lowest)
• Median household income: $55,826 (8th lowest)
• Property tax as a share of state and local tax revenue: 21.2% (9th lowest)

28. Virginia

• Effective property tax rate: 0.87%
• Property tax collections per capita: $1,830 (16th highest)
• Median home value: $330,600 (16th highest)
• Median household income: $80,963 (10th highest)
• Property tax as a share of state and local tax revenue: 32.7% (22nd highest)

29. Washington

• Effective property tax rate: 0.87%
• Property tax collections per capita: $1,727 (22nd highest)
• Median home value: $485,700 (3rd highest)
• Median household income: $84,247 (7th highest)
• Property tax as a share of state and local tax revenue: 28.1% (20th lowest)

30. Indiana

• Effective property tax rate: 0.84%
• Property tax collections per capita: $1,146 (13th lowest)
• Median home value: $182,400 (9th lowest)
• Median household income: $62,743 (14th lowest)
• Property tax as a share of state and local tax revenue: 24.3% (13th lowest)

31. Kentucky

• Effective property tax rate: 0.83%
• Property tax collections per capita: $33 (the lowest)
• Median home value: $173,300 (6th lowest)
• Median household income: $55,573 (7th lowest)
• Property tax as a share of state and local tax revenue: 21.0% (8th lowest)

32. North Carolina

• Effective property tax rate: 0.82%
• Property tax collections per capita: $1,082 (10th lowest)
• Median home value: $236,900 (23rd lowest)
• Median household income: $61,972 (12th lowest)
• Property tax as a share of state and local tax revenue: 25.7% (15th lowest)

33. California

• Effective property tax rate: 0.75%
• Property tax collections per capita: $1,955 (15th highest)
• Median home value: $648,100 (2nd highest)
• Median household income: $84,907 (5th highest)
• Property tax as a share of state and local tax revenue: 27.9% (19th lowest)

34. Montana

• Effective property tax rate: 0.74%
• Property tax collections per capita: $1,806 (18th highest)
• Median home value: $322,800 (17th highest)
• Median household income: $63,249 (16th lowest)
• Property tax as a share of state and local tax revenue: 40.4% (8th highest)

35. New Mexico

• Effective property tax rate: 0.67%
• Property tax collections per capita: $899 (6th lowest)
• Median home value: $214,000 (16th lowest)
• Median household income: $53,992 (6th lowest)
• Property tax as a share of state and local tax revenue: 18.0% (3rd lowest)

36. Mississippi

• Effective property tax rate: 0.67%
• Property tax collections per capita: $1,167 (15th lowest)
• Median home value: $145,600 (2nd lowest)
• Median household income: $48,716 (the lowest)
• Property tax as a share of state and local tax revenue: 29.4% (23rd lowest)

37. Tennessee

• Effective property tax rate: 0.67%
• Property tax collections per capita: $845 (4th lowest)
• Median home value: $235,200 (22nd lowest)
• Median household income: $59,695 (10th lowest)
• Property tax as a share of state and local tax revenue: 22.7% (10th lowest)

38. Idaho

• Effective property tax rate: 0.67%
• Property tax collections per capita: $1,131 (12th lowest)
• Median home value: $369,300 (11th highest)
• Median household income: $66,474 (24th lowest)
• Property tax as a share of state and local tax revenue: 27.8% (18th lowest)

39. Arkansas

• Effective property tax rate: 0.64%
• Property tax collections per capita: $798 (3rd lowest)
• Median home value: $162,300 (3rd lowest)
• Median household income: $52,528 (4th lowest)
• Property tax as a share of state and local tax revenue: 18.4% (4th lowest)

40. Arizona

• Effective property tax rate: 0.63%
• Property tax collections per capita: $1,206 (16th lowest)
• Median home value: $336,300 (15th highest)
• Median household income: $69,056 (20th highest)
• Property tax as a share of state and local tax revenue: 29.2% (22nd lowest)

41. Delaware

• Effective property tax rate: 0.61%
• Property tax collections per capita: $1,049 (9th lowest)
• Median home value: $300,500 (20th highest)
• Median household income: $71,091 (19th highest)
• Property tax as a share of state and local tax revenue: 17.9% (2nd lowest)

42. Nevada

• Effective property tax rate: 0.59%
• Property tax collections per capita: $1,153 (14th lowest)
• Median home value: $373,000 (9th highest)
• Median household income: $66,274 (23rd lowest)
• Property tax as a share of state and local tax revenue: 24.0% (12th lowest)

43. Utah

• Effective property tax rate: 0.57%
• Property tax collections per capita: $1,209 (17th lowest)
• Median home value: $421,700 (7th highest)
• Median household income: $79,449 (11th highest)
• Property tax as a share of state and local tax revenue: 27.1% (16th lowest)

44. West Virginia

• Effective property tax rate: 0.57%
• Property tax collections per capita: $1,002 (8th lowest)
• Median home value: $143,200 (the lowest)
• Median household income: $51,248 (2nd lowest)
• Property tax as a share of state and local tax revenue: 23.4% (11th lowest)

45. South Carolina

• Effective property tax rate: 0.57%
• Property tax collections per capita: $1,314 (18th lowest)
• Median home value: $213,500 (15th lowest)
• Median household income: $59,318 (9th lowest)
• Property tax as a share of state and local tax revenue: 32.4% (24th highest)

46. Louisiana

• Effective property tax rate: 0.56%
• Property tax collections per capita: $914 (7th lowest)
• Median home value: $192,800 (11th lowest)
• Median household income: $52,087 (3rd lowest)
• Property tax as a share of state and local tax revenue: 20.7% (6th lowest)

47. Wyoming

• Effective property tax rate: 0.56%
• Property tax collections per capita: $2,163 (12th highest)
• Median home value: $266,400 (24th highest)
• Median household income: $65,204 (20th lowest)
• Property tax as a share of state and local tax revenue: 40.4% (8th highest)

48. Colorado

• Effective property tax rate: 0.55%
• Property tax collections per capita: $1,956 (14th highest)
• Median home value: $466,200 (5th highest)
• Median household income: $82,254 (9th highest)
• Property tax as a share of state and local tax revenue: 34.5% (17th highest)

49. Alabama

• Effective property tax rate: 0.40%
• Property tax collections per capita: $632 (2nd lowest)
• Median home value: $172,800 (5th lowest)
• Median household income: $53,913 (5th lowest)
• Property tax as a share of state and local tax revenue: 16.8% (the lowest)

50. Hawaii

• Effective property tax rate: 0.32%
• Property tax collections per capita: $1,556 (23rd lowest)
• Median home value: $722,500 (the highest)
• Median household income: $84,857 (6th highest)
• Property tax as a share of state and local tax revenue: 20.8% (7th lowest)

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