In some states, homes are 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 above $5,000 and beyond.
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. The results are listed in ascending order from least expensive to most. For context, the national average effective property tax is 0.99%, the U.S. average home value is $337,560 and the average annual property tax bill is $3,357.
Pennsylvania's property taxes are high enough to earn it a place in the top 10, but its residents still pay a relatively low property tax rate. That may be due to it having average home values under $260,000.
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9. Ohio
Average effective property tax: 1.52%
March 2022 average home value: $204,237
Average annual property tax paid: $3,104
Ohio has the No. 2 cheapest average home value on the list behind only Iowa. Its property taxes are a bit higher, however, but still nowhere near as pricey as those closer to the top of the list.
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8. Wisconsin
Average effective property tax: 1.53%
March 2022 average home value: $257,439
Average annual property tax paid: $3,939
Next on the list is Wisconsin where the average property tax may be less than the ones that follow, but it's still high enough to rank. And with an average home value is among the cheapest on this list, Wisconsin has earned a spot among the five states with average annual property taxes paid of less than $4,000.
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7. Nebraska
Average effective property tax: 1.54%
March 2022 average home value: $233,221
Average annual property tax paid: $3,592
Nebraska has the No. 3 cheapest average home value on the list, behind only Ohio and Iowa. And though its property taxes are higher than the rest of the U.S., they're still on the bottom half of this list.
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6. Texas
Average effective property tax: 1.60%
March 2022 average home value: $296,622
Average annual property tax paid: $4,746
Prices start to rise all around when we hit Texas. The average home value is climbing toward $300,000, and its property taxes are edging up toward $5,000.
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5. Connecticut
Average effective property tax: 1.73%
March 2022 average home value: $369,485
Average annual property tax paid: $6,392
Connecticut and the rest of New England are no stranger to the pricey side of any list having todo with the cost of living in the states. Connecticut marks a significant leap upward in property taxes, closing in on $6,500 per year.
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4. Vermont
Average effective property tax: 1.76%
March 2022 average home value: $347,329
Average annual property tax paid: $6,113
Like its neighboring New England states, Vermont is undoubtedly a pricey state to live in. You can expect to spend over $6,000 in property taxes here, but considering that the average home value is almost $350,000, it's no surprise.
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3. New Hampshire
Average effective property tax: 1.89%
March 2022 average home value: $434,563
Average annual property tax paid: $8,213
The first state to hit an average effective property tax rate of 1.8%, New Hampshire almost takes the lead with one of the three highest annual average property tax rates on this list.
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2. Illinois
Average effective property tax: 1.97%
March 2022 average home value: $258,872
Average annual property tax paid: $5,100
Illinois is an odd little outlier for the No. 2 spot on this list, as its annual average property taxes are lower than others that fall lower on the list, as is its annual home value. However, it's the property tax rate of nearly 2% that earns it this high spot.
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1. New Jersey
Average effective property tax: 2.13%
March 2022 average home value: $458,872
Average annual property tax paid: $9,774
New Jersey holds the unenviable distinction of having the highest property taxes in America yet again-it's a title that the Garden State has gotten used to defending. The tax rate there is an astronomical 2.21%, the highest in the country, and its average home value is painfully high as well. The result is America's highest average annual property tax paid-no other state even breaks the $7,000 mark, much less $8,000.
Methodology: GOBankingRates looked at Tax Foundation's "How High Are Property Taxes in Your State?" 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 May 9, 2022.
