Property taxes across America vary a lot, and this has a huge impact on your monthly living costs as well as the affordability of homes in different regions. These taxes also have a big impact on local economies and housing markets, so watch out for these 17 states, which have some of the highest rates in the country.
New Jersey
According to N.J.com, in 2023, “the average property tax bill for homeowners in the Garden State hit a record $9,803.” This is among the highest in the country, and as a result, the state has a reputation for having a high cost of living and a high number of people migrating out of the state.
Illinois
Although they vary widely throughout the state, Illinois’ property taxes are among the highest across the US. While they are necessary to fund local services such as education, the cost has a huge impact on residents and has resulted in a lot of people moving away from the state.
New Hampshire
Due to the fact that New Hampshire doesn’t charge state income or sales tax, they rely heavily on property taxes for revenue. Door Loop says, “It has the fourth-highest property tax rate in the US, which is 1.77%.” The funds from this help local governing bodies pay for public services and infrastructure.
Connecticut
There is quite a lot of variation in Connecticut’s property tax system, and a lot of the highest rates are found in the wealthiest areas. Overall, this makes the state the third highest in the country for property taxes, which is a big cost for residents.
Texas
While residents of Texas benefit from having no state income tax to pay, it means the area relies more on property taxes for revenue. As a result, property taxes are relatively high, although there are big differences between urban areas such as Austin and small rural places.
Nebraska
Another state with high property taxes, Nebraska, is particularly controversial due to the high charges farmers face for their land, which have a big impact on their profits. However, these taxes are the main source of funding for education in the state.
Wisconsin
The property taxes in Wiscosin have been historically high, and even though there have been recent efforts to stop this from further increasing, AARP found that “Wisconsin has one of the highest average property tax rates in the U.S., ranking eighth highest among all 50 states.” Within the state, taxes are generally higher in urban areas.
Michigan
In Michigan, properties are assessed annually and valued at 50% of their market value for tax purposes. This allows the state to accurately charge property taxes, as local governments heavily rely on the funding for public schools and other services. The rising rates, particularly in cities, are tricky for many residents to pay.
Vermont
Unfortunately for residents in Vermont, the tourism market often drives up property values in popular areas. This means property taxes can become significantly higher. As a result, there are various state aid programs in place for those who can’t afford the payments.
Rhode Island
As the smallest state in the US, there is limited space for residents and a high demand for local public services in Rhode Island. This has led to inflated property taxes that are among the highest in the country. To try and help, local governments have put tax caps in place to protect the elderly and those on low incomes.
Ohio
Ohio’s property taxes are relatively high, and according to Axios, they have increased in recent years, “Median property taxes in Ohio rose 23.1% from 2019 to 2023, above the national average of 21.6%.” This has an impact on home buyers and investors in the region, especially as neighboring states have lower taxes.
Pennsylvania
The rates in Pennsylvania vary quite dramatically between counties, which is done to reflect the needs of the local community and each area’s economic situation. Older people in this state are particularly effected by high property taxes, and the local government has put tax relief programs together to help them.
New York
New York is another state where property taxes have big variations depending on the area. For example, New York City and Long Island have disproportionately high rates compared to other areas due to the high property values and more affluent communities. There are a number of exemption programs in place for those who need them.
Massachusetts
Overall, Massachusetts has a moderate property tax rate, but like many other states, these rates vary a lot depending on the area. These taxes are, however, crucial for funding the high quality public services and amenities on offer in the state, such as schools, safety services, and infrastructure.
Iowa
In Iwoa, there are particularly high tax rates on agricultural land, which has a big impact on farmers’ ability to make a profit from their operations as well as the value of their land. The state also tries to balance taxes to insure they have enough funding for essential services while providing businesses with competitive rates for commercial properties.
Minnesota
Minnesota has a complex property tax system, which means rates vary a lot depending on the type of property you live in and where it is. This has a big impact on the state’s housing market, as buyers need to carefully consider what they can afford.
Maryland
High property values in Maryland have a big effect on property taxes, so the state reassesses properties every three years to ensure each one is fairly and accurately taxed. Homeowners in the state do get a bit of extra support with various tax credits to help keep it affordable.
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