Homeowners in these 20 states have the lowest property tax rates in the US. See how the states rank.
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- Property taxes are among the many factors to consider when buying a home in the US.
- New Jersey has the highest property tax rate, which is nearly eight times the country's lowest.
- Hawaii has the lowest real estate taxes in the country, despite having the highest-valued homes.
Owning a home is increasingly feeling more out of reach for many Americans.
One of the many factors that add to the pressures and challenges of homeownership is the ongoing cost of property taxes, which persists even after a property is paid off.
For some, property taxes are little more than an afterthought, while for others, they can be a significant financial setback on top of mortgage or insurance payments.
A recent WalletHub study looked at the tax burden of owning real estate across the US and ranked all 50 states by the effective tax rate paid by homeowners in the state. The study used data from the US Census Bureau.
"Property taxes represent a recurring cost that can significantly affect financial planning, savings capacity, and long-term affordability," Mitchell Franklin, an accounting professor at Le Moyne College in New York, said in the study. "Even if a home's purchase price appears manageable, high property taxes can dramatically increase the overall cost of ownership and strain household budgets."
Across the country, states like New Jersey and Illinois top the charts with the highest tax rates of 2.11% and 2.01% respectively.
In New Jersey, the owners of a home priced at the state's median home value, which in the state is $454,400, pay an annual $9,590.
Meanwhile, in states like Alabama, which has the second-lowest real estate tax rate in the country, the owners of a home at the state's median home value, which in this case is $209,900, pay about $788 each year.
These 20 US states have the lowest real estate tax rates. See how they rank.
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