As Americans are preparing to file their 2020 taxes, we thought it would be a good time to look at how some states rank in regards to property tax rates. A recent study by WalletHub analyzed tax data on all 50 states and the District of Columbia. Although the amount varies wildly, the average American household pays $2,471 on real estate property taxes. One not so surprising finding from this analysis determined that how states voted in the last presidential election correlated with their tax rates. In other words, Democratic states generally pay more in property taxes than Republican states.
States with the highest property taxes
New Jersey came in at the top spot as the state with the highest property tax rate. Residents in this state can expect to pay a rate of 2.49% in property taxes. Therefore, living in a median-priced home in the area ($335,600) means that you will be coughing up $8,362 per year in property taxes. Below is a list of the states with the highest property taxes:
- New Jersey: $8,362 (2.49%)
- Illinois: $4,419 (2.27%)
- New Hampshire: $5,701 ( 2.18%)
- Connecticut: $5,898 (2.14%)
- Vermont: $4,329 (1.90%)
- Wisconsin: $3,344 (1.85%)
- Texas: $3,099 (1.80%)
- Nebraska: $2,689 (1.73%)
- New York: $5,407 (1.72%)
- Rhode Island: $4,272 (1.63%)
States with the lowest property taxes
Below is a list of the states with the lowest property taxes:
- Hawaii: $1,715 (0.28%)
- Alabama: $587 (0.41%)
- Colorado: $1,756 (0.51%)
- Louisiana: $890 (0.55%)
- District of Columbia: $3,378 (0.56%)
- South Carolina: $924 (0.57%)
- Delaware: $1,431 (0.57%)
- West Virginia: $698 (0.58%)
- Nevada: $1,614 (0.60%)
- Wyoming: $1,337 (0.61%)
The middle states (ranked lowest to highest in taxes)
- 11. Arkansas
- 12. Utah
- 13. Arizona
- 14. Idaho
- 15. Tennessee
- 16. California
- 17. New Mexico
- 18. Mississippi
- 19. Virginia
- 20. Montana
- 21. North Carolina
- 22. Indiana
- 23. Kentucky
- 24. Florida
- 25. Oklahoma
- 26. Georgia
- 27. Missouri
- 28. Oregon
- 29. North Dakota
- 30. Washington
- 31. Maryland
- 32. Minnesota
- 33. Alaska
- 34. Massachusetts
- 35. South Dakota
- 36. Maine
- 37. Kansas
- 38. Michigan
- 39. Ohio
- 40. Iowa
- 41. Pennsylvania
Summary
You may be wondering what Florida’s effective property tax rate is? As reflected above, the Sunshine State came in ranked #24 in the country, which puts it approximately in the middle of the pack. With an effective property tax rate of 0.89% and a median home value of $215,300, this would equate to an average property tax bill of $1,914 per year. Of course, certain parts of Florida such as South Florida will have higher median home values. It is important to also note that the state of Florida does not have a state income tax. Therefore, these factors combined with the beautiful beaches and tropical climate are major reasons why we are seeing so many Americans relocating to South Florida.
Are you ready to live where others vacation? If so, contact Live South Florida Realty, Inc. today!
