What to Know
- Property taxes can be a small inconvenience or a major financial worry depending on the state you call "home"
- WalletHub determined that New Jersey has the lagest real estate property tax rate among the 50 states and the District of Columbia.
- Rest of tri-state doesn't trail too far behind with Connecticut coming in as the state with fourth largest rate and New York with the ninth
Property taxes can be a small inconvenience or a major financial worry depending on the state you call "home."
According to the U.S. Census Bureau, the average American household spends about $2,279 on property taxes annually, with residents in the 27 states with vehicle property taxes paying a few hundred dollars more.
While property taxes may seem like a non-issue for renters, in actuality, we all pay property taxes directly or indirectly, like an increase in rent. With this in mind, the financial website WalletHub looked at which states have the largest property tax load and for residents of the Garden State, the news may not come as much of a surprise.
WalletHub determined that New Jersey has the lagest real estate property tax rate among the 50 states and the District of Columbia.
According to the report, New Jersey has a 2.44 percent tax rate on a house valued at $193,500 — the median home value in the United States as of 2017. This means that for a house with that value, a New Jersey resident has to pay about $4,725 annually in real estate property tax.
However, that is not the entire picture for New Jerseyans. Because the state's median home value is $321,100, a New Jersey resident pays an approximate $7,840 in real estate property taxes annually on a 2.44 percent tax rate.
Local
Additionally, nearby Connecticut and New York also rank among the top 10 states with the largest tax rate, according to WalletHub.
Not far behind New Jersey, Connecticut comes in fourth among the states with the largest tax rate due to a 2.07 percent tax rate that translates to $3,999 in taxes for a home valued at the United States median rate. However, in reality, the average homeowner in Connecticut will pay about $5,582 annually in property tax since the state's median home value is $270,100.
New York placed as the ninth state with the largest property tax rate. The state's rate is 1.68 percent annually — or $3,246 — on a home valued at the United States median of $193,500.
However, since the state's median home value is $293,000, a home-owning New Yorker will pay about $4,915 in property taxes each year.
WalletHub's study also determined that red state impose lower real estate property taxes than blue states.
Additionally, since New York and New Jersey do not have a vehicle property tax, they were among the states that had the lowest vehicle property tax rate in the county. Connecticut, however, has a vehicle property tax rate of 2.59 percent on a vehicle valued at $24,350, translating to an annual tax of $632 — the fifth highest in the country.
To see the complete list and the methodology used, click here.
