American homeowners' annual property tax payments vary by thousands of dollars depending on the states they are residing in, as per an investigation by Tax Foundation based in the US.
The various sums were computed using the most recent available census data from 2021, which covered five years.
The median tax bill was $2,331 when totalled across all states.
According to a Tax Foundation examination of 2021 census data, the disparity between states is mostly explained by variations in home values and property tax rates, which range from an average effective rate of 0.32% in Hawaii to 2.23% in New Jersey.
In addition to having some of the highest home prices in the nation, New Jersey has the highest effective property tax rate in the country. As a result, property taxes are high for homeowners.
Following is the list of the US states, where homeowners pay the most property taxes.
New Jersey $8,797.00
Connecticut $6,153.00
New Hampshire $6,036.00
New York $5,884.00
Massachusetts $5,091.00
Illinois $4,744.00
Vermont $4,570.00
Rhode Island $4,483.00
California $4,279.00
Washington $3,752.00
According to information given to CNBC Make It, New Jersey has the highest median household income around $8,797 of any state in the United States. Whereas, the average property tax bill in Alabama is only $646.
Hawaii has the lowest rate of all the states, but because homes are so expensive, Hawaii is more in the middle of the pack in terms of how much it actually costs to pay property taxes.
According to the study, property taxes account for 32.2% of state and municipal revenue in the United States. Schools, roads, police, fire, and emergency medical services are often funded by these taxes.
Property tax bills typically cost more in states that prioritise county and municipal local governance. This applies to Illinois, New York, and New Jersey.
Even in states with low state income taxes, like Texas and New Hampshire, property taxes can be quite costly. These states rely more on property tax revenue to pay for government services because they don't charge personal income taxes.
Property taxes within a state can vary greatly, with residents in metropolitan regions typically paying higher rates than those in rural areas due to greater home values and infrastructure expenses.
According to data from the US Census American Community Survey, the Tax Foundation used the median amount of taxes paid for owner-occupied properties between 2017 and 2021 to determine median property tax amounts. Renters' and companies' property taxes are not included in the data.
Below is the list of US states with the lowest property taxes for homeowners.
Alabama $646.00
West Virginia $756.00
Arkansas $878.00
Louisiana $983.00
South Carolina $1,024.00
Mississippi $1,052.00
Tennessee $1,270.00
Indiana $1,308.00
Kentucky $1,320.00
Oklahoma $1,351.00
Bitcoin began at a little over $5,000 at the start of the epidemic and reached a peak of around $68,000 in November 2021
Gold's rise was largely propelled by speculations fueled by Federal Reserve Chair Jerome Powell's comments on Friday...
James Cleverly says that the UK is raising the required wage for a skilled worker visa to £38,700 in an attempt to...
National Electric Power Regulatory Authority decides to initiate legal action against power providing companies
Analyst says bulls are driving PSX as market participants are hoping for rate cut in next week's MPC meeting
Disney, Apple have stopped advertising on X, and Elon Musk has told corporations that have departed to "Go yourself"