Property taxes can range by almost $8,000 for the same-priced house, relying on the place you reside in the U.S., a brand new examine reveals.
New Jersey’s efficient tax price is 2.23%, the highest in all 50 states and the District of Columbia, based on Tax Foundation’s analysis of the Census Bureau’s most up-to-date information.
Hawaii is the lowest-taxed state, with an efficient tax price of 0.32%.
For a house that is value the U.S. median of $416,100, meaning New Jersey householders would pay $9,279 in property taxes. In Hawaii, the tax invoice for the identical house would solely be $1,332.
The median efficient property tax price for all states and the District of Columbia is 0.91%. Only New Jersey and Illinois have property taxes that are greater than 2%.
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In New Jersey, there is a sturdy emphasis on native management of public companies, notably training. Those training prices are amongst the highest in the nation, and they’re mostly paid through property taxes.
Likewise, Illinois has extra models of native authorities than every other state, based on the state’s legislative handbook. These are funded by property taxes, with a giant chunk of these taxes paying for training and state worker pension obligations.
By distinction, Hawaii’s authorities is more centralized at the state degree and depends on tourism greater than property taxes to pay for presidency companies. As a end result, property taxes are the lowest in the nation.
However, even with low property taxes, Hawaii remains to be the costliest state to purchase a home, according to a recent LendingTree study.
Notably, comparatively low-tax states like New Hampshire and Texas are amongst the states with the highest efficient property tax charges. Since neither state levies revenue taxes, they’re extra reliant on property taxes to pay for a larger share of presidency companies.
For functions of the examine, the efficient property tax displays common taxes paid towards a house’s worth, for owner-occupied properties solely. The price was calculated utilizing 2021 U.S. Census information, the most up-to-date obtainable.
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