According to the latest data, New Jersey has the highest property tax rates, while Hawaii ranks the lowest. For individuals planning to purchase property, understanding the property tax situation in their target state is crucial, in addition to considering property prices and mortgage situations, to avoid increasing the cost burden of property ownership.
According to a report released by WalletHub, in 2022, the median property tax paid by homeowners in New Jersey amounted to $9,345 annually, the highest in the nation. In comparison, the median property tax paid by the typical American homeowner is $2,869. The report indicates that property taxes in Democratic strongholds in the Northeast are generally higher than those in Republican-leaning states in the South, although there are exceptions.
Homeowners in Hawaii paid about $2,054 in property taxes in 2022.(Getty Images)
Apart from New Jersey, states like Illinois, Connecticut, New Hampshire, and Vermont have relatively high property tax rates. In contrast, Hawaii has the lowest effective tax rate at only 0.27%, with homeowners paying approximately $2,054 annually, one of the lowest in the country.
New Jersey’s median home price was $524,950 in January.(Angus Mordant/Bloomberg via Getty Images)
Property tax rates vary not only due to regional factors but also due to policies, local economic conditions, and other factors. For example, property tax revenues in most areas are primarily used to fund public services such as public schools. Although property tax rates may be higher, homeowners in areas with lower property prices may pay lower overall tax amounts.
When purchasing property, buyers should consider factors such as property prices, mortgage situations, and property taxes to ensure they can afford the comprehensive costs of property ownership. Understanding the property tax situation in different states can help buyers make wiser decisions and avoid unnecessary financial pressure.