In some states, homes are cheap, property tax rates are less than half of 1% and the average property tax payment is just a few hundred bucks per year. In the most expensive states, however, rates soar over 2%, homes are pricey and average annual property tax bills routinely creep above $5,000 and beyond.
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Using data from the Tax Foundation, GOBankingRates ranked the states with the highest property taxes in America, including the percentage rate, the average dollar amount paid and the average home value. The results are listed in ascending order from least expensive to most. For context, the national average effective property tax is 1.06%, the U.S. average home value is $263,351 and the average annual property tax bill is $2,787.
See which states are the most expensive to own real estate in.
Last updated: April 9, 2021
10. Rhode Island
Average effective property tax: 1.53%
November 2020 average home value: $337,470
Average annual property tax paid: $5,163
Rhode Island’s property taxes are high, but certainly not shockingly high by the standards of pricey New England. It’s one of only four states on this list with annual property tax payments over $5,000, mostly because of its steep home prices.Learn: Tax Tricks the Rich Don’t Want You To Know
9. Ohio
Average effective property tax: 1.62%
November 2020 average home value: $166,213
Average annual property tax paid: $2,693
Ohio’s property taxes are high enough to earn it a place in the top 10, but its residents pay the lowest average annual tax of any state on this list. That’s because it’s one of only two states in the top 10 with average home values under $200,000. Average prices in the other state, Nebraska, are more than $20,000 higher, making Ohio the cheapest by far.Overall: Best and Worst States for Taxes — Ranked
8. Nebraska
Average effective property tax: 1.65%
November 2020 average home value: $189,314
Average annual property tax paid: $3,124
Nebraska has the No. 2 cheapest average home value on the list behind only Ohio. Its property taxes are a bit higher, so it–like every other state on this list–can’t join the Buckeye State in boasting sub-$3,000 average annual taxes paid. Moving? 50 Cities With the Most Underpriced Homes
7. Texas
Average effective property tax: 1.69%
November 2020 average home value: $220,942
Average annual property tax paid: $3,734
Texas is a newcomer to the list and wasn’t ranked among the 10 states with the highest property taxes last year. It’s the last state on the list with a tax rate lower than 1.7%.Find Out: Is Taking Out Loans to Pay Off the IRS a Good Idea?
6. Connecticut
Average effective property tax: 1.70%
November 2020 average home value: $299,945
Average annual property tax paid: $5,099
Back to the Northeast is Connecticut, which is just expensive enough to squeak out a spot among the four states with average annual taxes paid above $5,000. Connecticut’s average home value isn’t quite $300,000, but at just a hair below, it’s still well above the national average. Find Out: What Are the 2020-2021 Federal Tax Brackets and Tax Rates?
5. Wisconsin
Average effective property tax: 1.73%
November 2020 average home value: $208,523
Average annual property tax paid: $3,607
Kicking off the top five is Wisconsin, where the average home value is cheaper than all but two other states on this list. That dynamic gives it a spot among the four states with average annual property taxes paid less than $4,000. Find Out: Most Popular Things To Do With Your Tax Refund — and How To Do It Smarter
4. Vermont
Average effective property tax: 1.80%
November 2020 average home value: $277,387
Average annual property tax paid: $4,993
The first state to hit an average effective property tax rate of 1.8%, Vermont and the rest of New England is no stranger to the pricey side of any list having to do with the cost of living in the states. Vermont missed joining the small list of states with average annual taxes paid above $5,000–but only by $7. Take a Look: What Homes Will Be Worth in Your State by the End of 2021
3. New Hampshire
Average effective property tax: 2.03%
November 2020 average home value: $333,739
Average annual property tax paid: $6,775
Right next door to Vermont is New Hampshire, where the average effective property tax rate soars above 2%–just two other states break that barrier. The average home value, too, is much higher than in neighboring Vermont, leaving New Hampshire as one of only two states with average annual taxes paid above $6,000. Learn More: The Major Tax Changes for 2021 You Need To Know About
2. Illinois
Average effective property tax: 2.05%
November 2020 average home value: $218,358
Average annual property tax paid: $4,476
Illinois, too, suffers from steep average effective tax rates above 2%. Its forgiving average home prices, however, help reduce the average annual property tax paid to an unremarkable sum in the mid-$4,000s. Did You Know: This Is Where Your Tax Dollars Actually Go
1. New Jersey
Average effective property tax: 2.21%
November 2020 average home value: $376,199
Average annual property tax paid: $8,314
New Jersey holds the unenviable distinction of having the highest property taxes in America yet again–it’s a title that the Garden State has gotten used to defending. The tax rate there is an astronomical 2.21%, the highest in the country, and its average home value is painfully high, as well. The result is America’s highest average annual property tax paid–no other state even breaks the $7,000 mark, much less $8,000. More From GOBankingRatesDon’t Miss Out on Nominating Your Favorite Small Business To Be Featured on GOBankingRates — Ends May 31
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Methodology: For this piece, GOBankingRates looked at the Tax Foundation’s “How High Are Property Taxes in Your State?” data to find (1) effective average property tax for each state. Once this was gathered GOBankingRates also found each state’s (2) November 2020 average home value from Zillow and (3) average annual property tax paid. Only factor (1) was considered in the final rankings. All data were collected on and up to date as of Dec. 17, 2020.
This article originally appeared on GOBankingRates.com: States With the Highest Property Taxes
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