Property taxes are an unavoidable fact of life for homeowners. However, not all property taxes are created equal. Rates vary widely across different states and cities. What you pay in property taxes has a profound impact on your overall cost of living. If you’re thinking of purchasing a home, here are the places with the worst property taxes in the country.
According to the US Census bureau, the average homeowner pays $2,197 in property taxes each year. If you’re a current homeowner, you’ll either say “that’s all?” or “that much??” depending upon where you live.
Property taxes vary widely around the country. They range from a minor inconvenience to a major household expense. One thing is clear: no one enjoys paying them.
States With The Worst Property Taxes
- New Jersey – 2.40%
- Illinois – 2.32%
- New Hampshire – 2.19%
- Connecticut – 2.02%
- Wisconsin – 1.95%
It should come as no surprise that many of the states with the worst property taxes are generally considered high tax states in other ways. Illinois, for example, is in the middle of a taxpayer exodus. High taxes and low economic freedom are causing citizens to flee. Connecticut is facing similar problems.
States With The Best Property Taxes
It’s hard to say that any property tax is “best.” However, if you’re looking for the states with the lowest property taxes in the country, here are your top 5.
- Hawaii – 0.27%
- Alabama – 0.43%
- Louisiana – 0.51%
- Delaware – 0.55%
- Washington, D.C – 0.56%
So Should We All Move to Hawaii?
Not so fast. Property taxes only tell one chapter of the cost of living story. While warm, sandy beaches and great surfing can be enticing; Hawaii is consistently ranked one of the worst states to make a living.
Why? Hawaii has one of the highest state income taxes in the country. This especially impacts high-income earners where the 11% top bracket rate is the highest in the United States.
Surprised you didn’t see California on the list of states with the worst property taxes? California’s 0.79% property tax rate is comparable to states like Virginia and Mississippi. However, California has skyrocketing home prices, a high state sales tax, and more.
The Moral Of the Story
Whether a state has the best or worst property taxes is an important factor to consider when deciding where to buy a home. However, it isn’t the whole picture. That’s where City vs City can help.
City vs City is a powerful cost of living calculator that looks at more than just taxes. Our app examines income, living expenses, savings, housing costs, transportation costs, and more. We examine cities at the zip-code level to arrive at an accurate comparison between your current city and another one of your choosing.
If you’re thinking of buying a home, download City vs City today and see where you can get the most bang for your buck!