2019’s Property Taxes by State
2:39 AMPosted by: John S Kiernan
Depending on where you live, property taxes can be a small inconvenience or a major burden. The average American household spends $2,197 on property taxes for their homes each year, according to the U.S. Census Bureau, and residents of the 27 states with vehicle property taxes shell out another $436. Considering these figures and the rising amount of debt in America, it should come as no surprise that more than $14 billion in property taxes go unpaid each year, the National Tax Lien Association has found.
And though property taxes might appear to be a non-issue for the 37 percent of renter households, that couldn’t be further from the truth. We all pay property taxes, whether directly or indirectly, as they impact the rent we pay as well as the finances of state and local governments.
But which states have the largest property tax load, and what should residents keep in mind when it comes to meeting and minimizing their tax obligations? In search of answers, we analyzed the 50 states and the District of Columbia in terms of real-estate and vehicle property taxes. We also asked a panel of property-tax experts for practical and political insight. Read on for our findings and a full description of our methodology.
Real-Estate Tax RankingEmbed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/11585/property-geochart1.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="https://ift.tt/2ovKWNC>
Real-Estate Property Taxes by State
|
Rank (1=Lowest) |
State |
Effective Real-Estate Tax Rate |
Annual Taxes on $185K Home* |
State Median Home Value |
Annual Taxes on Home Priced at State Median Value |
|---|---|---|---|---|---|
| 1 | Hawaii | 0.27% | $501 | $538,400 | $1,459 |
| 2 | Alabama | 0.43% | $791 | $128,500 | $550 |
| 3 | Louisiana | 0.51% | $934 | $148,300 | $750 |
| 4 | Delaware | 0.55% | $1,009 | $233,100 | $1,274 |
| 5 | District of Columbia | 0.56% | $1,026 | $506,100 | $2,811 |
| 6 | Colorado | 0.57% | $1,058 | $264,600 | $1,516 |
| 6 | South Carolina | 0.57% | $1,056 | $143,600 | $821 |
| 8 | West Virginia | 0.59% | $1,082 | $107,400 | $629 |
| 9 | Wyoming | 0.61% | $1,130 | $199,900 | $1,223 |
| 10 | Arkansas | 0.63% | $1,161 | $114,700 | $721 |
| 11 | Utah | 0.67% | $1,240 | $224,600 | $1,508 |
| 12 | Tennessee | 0.75% | $1,376 | $146,000 | $1,088 |
| 13 | Idaho | 0.76% | $1,404 | $167,900 | $1,276 |
| 13 | New Mexico | 0.76% | $1,408 | $161,600 | $1,232 |
| 15 | Arizona | 0.77% | $1,427 | $176,900 | $1,367 |
| 15 | Nevada | 0.77% | $1,425 | $191,600 | $1,478 |
| 17 | California | 0.79% | $1,461 | $409,300 | $3,237 |
| 17 | Virginia | 0.79% | $1,467 | $248,400 | $1,973 |
| 19 | Mississippi | 0.80% | $1,470 | $105,700 | $841 |
| 20 | Kentucky | 0.85% | $1,579 | $126,100 | $1,078 |
| 20 | Montana | 0.85% | $1,570 | $199,700 | $1,698 |
| 22 | North Carolina | 0.86% | $1,581 | $157,100 | $1,345 |
| 23 | Indiana | 0.87% | $1,606 | $126,500 | $1,100 |
| 24 | Oklahoma | 0.89% | $1,638 | $121,300 | $1,076 |
| 25 | Georgia | 0.93% | $1,712 | $152,400 | $1,413 |
| 26 | Missouri | 1.00% | $1,842 | $141,200 | $1,408 |
| 27 | Florida | 1.02% | $1,885 | $166,800 | $1,702 |
| 28 | North Dakota | 1.05% | $1,947 | $164,000 | $1,729 |
| 29 | Washington | 1.06% | $1,962 | $269,300 | $2,860 |
| 30 | Oregon | 1.07% | $1,970 | $247,200 | $2,637 |
| 31 | Maryland | 1.10% | $2,030 | $290,400 | $3,191 |
| 32 | Minnesota | 1.17% | $2,155 | $191,500 | $2,234 |
| 33 | Alaska | 1.19% | $2,190 | $257,100 | $3,048 |
| 34 | Massachusetts | 1.21% | $2,238 | $341,000 | $4,132 |
| 35 | Maine | 1.32% | $2,444 | $176,000 | $2,329 |
| 35 | South Dakota | 1.32% | $2,446 | $146,700 | $1,943 |
| 37 | Kansas | 1.40% | $2,580 | $135,300 | $1,890 |
| 38 | Iowa | 1.50% | $2,762 | $132,800 | $1,986 |
| 39 | Pennsylvania | 1.55% | $2,867 | $167,700 | $2,603 |
| 40 | Ohio | 1.56% | $2,890 | $131,900 | $2,064 |
| 41 | New York | 1.65% | $3,057 | $286,300 | $4,738 |
| 41 | Rhode Island | 1.65% | $3,047 | $238,200 | $3,929 |
| 43 | Michigan | 1.71% | $3,158 | $127,800 | $2,185 |
| 44 | Vermont | 1.78% | $3,285 | $218,900 | $3,893 |
| 45 | Nebraska | 1.83% | $3,371 | $137,300 | $2,506 |
| 46 | Texas | 1.86% | $3,435 | $142,700 | $2,654 |
| 47 | Wisconsin | 1.95% | $3,602 | $167,000 | $3,257 |
| 48 | Connecticut | 2.02% | $3,733 | $269,300 | $5,443 |
| 49 | New Hampshire | 2.19% | $4,038 | $239,700 | $5,241 |
| 50 | Illinois | 2.32% | $4,288 | $174,800 | $4,058 |
| 51 | New Jersey | 2.40% | $4,437 | $316,400 | $7,601 |
*$184,700 is the median home value in the U.S. as of 2016, the year of the most recent available data.
Changes to Real Estate Tax Rates Over Time
Embed on your website<a href="https://ift.tt/1Tc9EwD"> <img src="//d2e70e9yced57e.cloudfront.net/wallethub/posts/47417/rankings-2010-2016-real-estate-tax_-states.gif" width="" height="" alt="Rankings-2010---2015-Real-Estate-Tax_-States" /> </a> <div style="width:px;font-size:12px;color:#888;">Source: <a href="https://ift.tt/2ovKWNC>
Red vs. Blue States
Vehicle Property Tax Ranking
Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/11585/property-geochart2.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="https://ift.tt/2ovKWNC>
Vehicle Property Taxes by State
|
Rank (1=Lowest) |
State |
Effective Vehicle Tax Rate |
Annual Taxes on $24K Car* |
|---|---|---|---|
| 1 | Hawaii | 0.00% | $0 |
| 1 | Delaware | 0.00% | $0 |
| 1 | District of Columbia | 0.00% | $0 |
| 1 | Utah | 0.00% | $0 |
| 1 | Tennessee | 0.00% | $0 |
| 1 | Idaho | 0.00% | $0 |
| 1 | New Mexico | 0.00% | $0 |
| 1 | Oklahoma | 0.00% | $0 |
| 1 | Georgia | 0.00% | $0 |
| 1 | Florida | 0.00% | $0 |
| 1 | North Dakota | 0.00% | $0 |
| 1 | Washington | 0.00% | $0 |
| 1 | Oregon | 0.00% | $0 |
| 1 | Maryland | 0.00% | $0 |
| 1 | Alaska | 0.00% | $0 |
| 1 | South Dakota | 0.00% | $0 |
| 1 | Pennsylvania | 0.00% | $0 |
| 1 | Ohio | 0.00% | $0 |
| 1 | New York | 0.00% | $0 |
| 1 | Vermont | 0.00% | $0 |
| 1 | Texas | 0.00% | $0 |
| 1 | Wisconsin | 0.00% | $0 |
| 1 | Illinois | 0.00% | $0 |
| 1 | New Jersey | 0.00% | $0 |
| 25 | Louisiana | 0.10% | $24 |
| 26 | Michigan | 0.59% | $142 |
| 27 | California | 0.65% | $156 |
| 28 | Alabama | 0.68% | $163 |
| 29 | Arkansas | 1.00% | $239 |
| 29 | Iowa | 1.00% | $240 |
| 31 | Kentucky | 1.22% | $292 |
| 32 | North Carolina | 1.25% | $299 |
| 32 | Indiana | 1.25% | $300 |
| 34 | Montana | 1.28% | $307 |
| 35 | Minnesota | 1.30% | $311 |
| 36 | Nebraska | 1.60% | $383 |
| 37 | West Virginia | 1.66% | $398 |
| 38 | Arizona | 1.68% | $403 |
| 39 | Nevada | 1.76% | $423 |
| 40 | Colorado | 1.79% | $428 |
| 41 | Wyoming | 1.80% | $432 |
| 41 | New Hampshire | 1.80% | $432 |
| 43 | Kansas | 2.06% | $495 |
| 44 | Massachusetts | 2.25% | $540 |
| 45 | Maine | 2.40% | $576 |
| 46 | Missouri | 2.50% | $600 |
| 47 | Connecticut | 2.54% | $609 |
| 48 | South Carolina | 2.71% | $651 |
| 49 | Mississippi | 3.39% | $813 |
| 50 | Virginia | 4.05% | $971 |
| 51 | Rhode Island | 4.77% | $1,144 |
*$24,000 is the value of a Toyota Camry LE four-door sedan (as of February 2018), the highest-selling car of 2017.
Ask the ExpertsProperty taxes are an extremely important issue since they impact all of our lives. But how should we incorporate them into our financial decision making? And how should policy makers across the U.S. approach them as well? For answers to those questions and more, we consulted a panel of tax and public-policy experts. You can check out their bios and responses to key questions below.
- Do people consider property taxes when deciding where to move? Should they?
- Should nonprofits pay property taxes?
- Should local tax policy be adjusted to rely more or less on property taxes versus other forms of taxation?
- Should more types of property be subject to property taxes? If yes, what types?
- Should certain groups of people be exempt from property taxes or be taxed at a lower rate?
Carolyn L. Dessin Aileen McMurray Trusler Professor of Law, University of Akron, School of Law
John Plecnik J.D., LL.M. – Associate Professor of Law, Cleveland-Marshall College of Law, Cleveland State University
John F. McDonald Ph.D. – Emeritus Professor of Economics, University of Illinois at Chicago and Adjunct Professor of Economics, Temple University
Adam Olson Ph.D., CPA – Assistant Professor, Department of Accounting, Lindner College of Business, University of Cincinnati
Blake Bowler Ph.D., CPA – Assistant Professor, University of Florida
Debra Sanders Emeritus Accounting Professor, Carson College of Business, Washington State University, Vancouver
Carolyn L. Dessin Aileen McMurray Trusler Professor of Law, University of Akron, School of Law
John Plecnik J.D., LL.M. – Associate Professor of Law, Cleveland-Marshall College of Law, Cleveland State University
John F. McDonald Ph.D. – Emeritus Professor of Economics, University of Illinois at Chicago and Adjunct Professor of Economics, Temple University
Adam Olson Ph.D., CPA – Assistant Professor, Department of Accounting, Lindner College of Business, University of Cincinnati
Blake Bowler Ph.D., CPA – Assistant Professor, University of Florida
Debra Sanders Emeritus Accounting Professor, Carson College of Business, Washington State University, VancouverIn order to determine the states with the highest and lowest property taxes, WalletHub compared the 50 states and the District of Columbia by using U.S. Census Bureau data to determine real-estate property tax rates and applying assumptions based on national auto-sales data to determine vehicle property tax rates.
For real-estate property tax rates, we divided the “median real-estate tax payment” by the “median home price” in each state. We then used the resulting rates to obtain the dollar amount paid as real-estate tax on a house worth $184,700, the median value for a home in the U.S. as of 2016 according to the Census Bureau.
For vehicle property tax rates, we examined data for cities and counties making up at least 50 percent of a given state’s population and extrapolated this to the state level using weighted averages based on population size. For each state, we assumed all residents own the same vehicle: a Toyota Camry LE four-door sedan — 2017’s highest-selling car — valued at $24,000, as of February 2018.
Please note that Georgia formerly imposed vehicle property tax but replaced it in 2013 with a one-time tax imposed on a vehicle’s fair market value (FMV).
Sources: Data used to create this ranking were collected from the U.S. Census Bureau and each state’s Department of Motor Vehicles.
Image: Tuan_Azizi / Shutterstock.com
from Wallet HubWallet Hub
via Finance Xpress
0 comments