2023 Property Taxes by State
Searching for a new home or an investment property? One thing to take into consideration is property tax. The average American household spends $2690 on property taxes for their homes each year, according to the US Census Bureau.
Property taxes are paid by the real estate owner to county or local tax authorities. They support the local schools and community infrastructure and they vary by state.
The amount of property taxes paid is based on the assessed value of your home and vary depending on your state’s property tax rate. Most homeowners pay these fees in combination with their mortgage payments. And even if you pay off your house in full, you can expect to continue to pay property tax.
In 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.
For real-estate property tax rates, they divided the “median real-estate tax payment” by the “median home price” in each state. They then used the resulting rates to obtain the dollar amount paid as real-estate tax on a house worth $244,900, the median value for a home in the U.S. as of 2021 according to the Census Bureau.
Check out the map below for their findings.
