According to an article in USA TODAY, Lawrence Yun, chief economist with the National Association of REALTORS®, believes that property taxes are “…a critical piece of information in the home purchase decision and something a buyer should ask before making ‘the’ purchase.” Since a portion of home borrowers mortgage payment goes to paying off property taxes, the specifics of that property tax rate really do matter.
The average state property tax in the US is 1.2% BUT state property taxes are HYPERLOCAL. It really does matter where one lives…on which side of the county, in which city, on which side of the street…because home values in each county, city and on each street determine property taxes. Areas with higher housing values can charge lower tax rates and still raise essential revenue needed to pay for schools, roads and police.
For example, in Ohio, the property tax rate is the twelfth highest in the country at 1.56%. A median priced house in Ohio valued at $129,000 brings in $2,032 in property taxes. In California, the property tax rate is 0.81%, the thirty-fourth lowest rate in the country. A median priced home in California at $385,500 raises $3,104 in property taxes.
In data from the Lincoln Institute of Land Policy, USA TODAY ranked property taxes among states by the effective tax rate for homeowners, not the median tax paid because the median tax paid is affected by overall home values. USA TODAY found that 18 states in the country have effective property tax rates that are the same or higher than the average US tax rate of 1.2%. Thirty-two states and the District of Columbia have lower property tax rates than that 1.2% average.
USA TODAY found that the Worst States for Property Taxes in 2019 are…
- New Jersey with a property tax rate of 2.35%
- Median home value of $315,900
- Median property tax paid – $7,410
- Illinois with a property tax rate of 2.3%
- Median home value of $173,800
- Median property tax paid – $3,995
- New Hampshire with a property tax rate of 2.15%
- Median home value of $237,300
- Median property tax paid – $5,100
- Connecticut with a property tax rate of 1.97%
- Median home value of $270,500
- Median property tax paid – $5,327
- Wisconsin with a property tax rate of 1.96%
- Median home value of $165,800
- Median property tax paid – $3,248
- Texas with a property tax rate of 1.9%
- Median home value of $136,000
- Median property tax paid – $2,578
- Nebraska with a property tax rate of 1.85%
- Median home value of $133,200
- Median property tax paid – $2,467
- Michigan with a property tax rate of 1.78%
- Median home value of $122,400
- Median property tax paid – $2,174
- Vermont with a property tax rate of 1.74%
- Median home value of $217,500
- Median property tax paid – $3,795
- Rhode Island with a property tax rate of 1.63%
- Median home value of $238,000
- Median property tax paid – $3,884
USA TODAY’s Best States for Property Taxes in 2019 are…
- Hawaii with a property tax rate of 0.27%
- Median home value of $515,300
- Median property tax paid – $1,406
- Alabama with a property tax rate of 0.43%
- Median home value of $125,500
- Median property tax paid – $543
- Louisiana with a property tax rate of 0.49%
- Median home value of $144,100
- Median property tax paid – $707
- Delaware with a property tax rate of 0.54%
- Median home value of $231,500
- Median property tax paid – $1,243
- Washington DC with a property tax rate of 0.56%
- Median home value of $475,800
- Median property tax paid – $2,665
- South Carolina with a property tax rate of 0.57%
- Median home value of $139,900
- Median property tax paid – $798
- West Virginia with a property tax rate of 0.58%
- Median home value of $103,800
- Median property tax paid – $607
– Colorado with a property tax rate of 0.6%
Median home value of $247,800
Median property tax paid – $1,489
- Wyoming with a property tax rate of 0.61%
- Median home value of $194,800
- Median property tax paid – $1,196
- Arkansas with a property tax rate of 0.62%
- Median home value of $111,400
- Median property tax paid – $693
