In certain states, homes can be 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 as high as $10,000 per year.
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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. We ranked the top 15 in ascending order from least expensive to most. For context, the national average effective property tax is 1.04%, the U.S. average home value is $349,015 and the average annual property tax bill is $3,630. See which states are the most expensive to own real estate in.
15. Kansas
Average effective property tax: 1.32%
2022 average home value: $210,447
Average annual property tax paid: $2,778
Kansas’s property taxes are actually low compared to the others on this list, but are still considered high in relation to the rest of the U.S.
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13. (tie) New York
Average effective property tax: 1.38%
2022 average home value: $370,445
Average annual property tax paid: $5,112
New York ties with Michigan for states with highest property taxes, though New York’s are$1,966 higher, significantly higher. The average home value is also quite a bit higher in New York than the other states, but its residents still pay a relatively low property tax rate.
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13. (tie) Michigan
Average effective property tax: 1.38%
2022 average home value: $228,708
Average annual property tax paid: $3,156
Michigan ties with New York for the #13 spot, even though the property taxes and home values are quite a bit different, but they both share a 1.38% property tax rate.
12. Rhode Island
Average effective property tax: 1.43%
2022 average home value: $433,666
Average annual property tax paid: $6,201
Rhode Island’s property taxes are higher, but so is its average home value, which is in the top three highest on this list.
11. Pennsylvania
Average effective property tax: 1.49%
2022 average home value: $265,724
Average annual property tax paid: $3,959
Pennsylvania’s property taxes are actually relatively low compared to some of the other states even lower on this list, but it has a higher property tax rate.
10. Iowa
Average effective property tax: 1.50%
2022 average home value: $197,330
Average annual property tax paid: $2,960
Iowa’s another state where the property taxes themselves aren’t actually all that high, though the tax rate is, because the average home value is lower here than other states.
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9. Ohio
Average effective property tax: 1.58%
2022 average home value: $212,757
Average annual property tax paid: $3,362
While the effective property tax rate is high in Ohio, the average home value is low, so property taxes are not as high as other states on this list.
8. Nebraska
Average effective property tax: 1.61%
2022 average home value: $244,619
Average annual property tax paid: $3,938
Nebraska’s average home value falls around the middle of the states on this list, but its property tax rate is creeping up past 1.6%.
7. Wisconsin
Average effective property tax: 1.63%
2022 average home value: $266,908
Average annual property tax paid: $4,351
Wisconsin’s property tax rate is over 1.6%, which, at an average home value of $266,908, translates to property taxes that are closing in on $4,500 per year.
6. Texas
Average effective property tax: 1.66%
2022 average home value: $308,392
Average annual property tax paid: $5,119
With a property tax rate edging up to 1.7%, and an average home value of over $300,000, Texas homeowners are paying over $5,000 in taxes each year.
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5. Connecticut
Average effective property tax: 1.76%
2022 average home value: $373,373
Average annual property tax paid: $6,571
In Connecticut, even though its average home value isn’t the highest on the list, with a tax rate of 1.76%, homeowners are paying through the teeth for their annual property taxes.
4. Vermont
Average effective property tax: 1.82%
2022 average home value: $366,246
Average annual property tax paid: $6,666
The New England state of Vermont sees a pricey jump in property tax rate from Connecticut. At over 1.8% property tax rate, even though its average home value is lower than Connecticut, that additional percentage pushes taxes here to a significant level.
3. New Hampshire
Average effective property tax: 1.96%
2022 average home value: $443,793
Average annual property tax paid: $8,698
New England holds three spots on this list, with New Hampshire almost at 2% property tax rate. Its average home value price is also the second most expensive on this list, and the annual property taxes are the second highest on this list.
2. Illinois
Average effective property tax: 2.05%
2022 average home value: $262,134
Average annual property tax paid: $5,374
Illinois may be the first state to crack the 2% mark in property tax rate, but due to its low average home value, the annual taxes here won’t break homeowners’ banks.
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1. New Jersey
Average effective property tax: 2.21%
2022 average home value: $470,981
Average annual property tax paid: $10,409
New Jersey earns the top spot as highest property taxes not only in property tax rate, which is over the 2% mark, but in the actual dollars spent in property taxes; here the average home value is the highest on the list.
Andrew Lisa contributed to the reporting for this article.
Methodology: For this piece GOBankingRates looked at Tax Foundation’s Property Tax data to find (1) effective average property tax for each state. Once this was gathered GOBankingRates also found each state’s (2) March 2022 average home value from Zillow and (3) average annual property tax paid. Only factor (1) was considered in the final rankings. All data was collected on and up to date as of Jan. 23, 2023.
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This article originally appeared on GOBankingRates.com: States With the Highest Property Taxes
