The typical American family spends $2,869 yearly on property taxes, in keeping with a brand new report from the non-public finance web site WalletHub.
Even renters pay property taxes, albeit not directly, as these taxes have an effect on the quantity of their month-to-month invoice and likewise bolster state and native authorities funds. College districts, counties, municipalities and townships can all acquire property taxes.
WalletHub, citing information from the U.S. Census Bureau and elsewhere, examined how property taxes differ relying on the place householders reside.
“Some states cost no property taxes in any respect, whereas others cost an arm and a leg,” WalletHub analyst Cassandra Happe mentioned in a press release. “Individuals who’re contemplating transferring and need to maximize the sum of money they take residence ought to take into consideration property tax charges, along with different monetary elements like the general price of dwelling, when deciding on a metropolis.”
To search out out the place property taxes are highest and lowest, WalletHub in contrast the 50 states and the District of Columbia by utilizing U.S. Census Bureau information to find out real-estate property tax charges. Researchers divided the median actual property tax cost by the median residence value in every state.
They then used the ensuing charges to acquire the greenback quantity paid as actual property tax on a home price $281,900, which the Census Bureau indicated was the median worth for a U.S. residence as of 2022.
In fact, the worth of a house issues with regards to whole tax payments. We broke ties in WalletHub’s rating of efficient tax charges utilizing the annual taxes paid on a house priced on the median worth inside the state.
See the accompanying gallery for the 12 states with the bottom property taxes, in keeping with WalletHub.