Which States Have the Highest Property Taxes?

Which states have the highest property taxes? A new analysis ranks states by property tax rates to determine which states have the highest property taxes.

Property taxes are a hot button for homeowners. That’s because no matter where you live, discussion around who pays the highest property taxes is bound to come up in conversation. So, here are some facts for your next trip to the watercooler or cocktail party.

The average American household spends $2,375 on property taxes each year, according to the U.S. Census Bureau. Residents of the 27 states with vehicle property taxes pay another $441. Recent research by WalletHub looks at property tax rates by state to determine which states have the highest and lowest property and vehicle taxes.

Which States Have the Highest Property Taxes?

New Jersey has the highest property taxes in the nation at nearly 2.5 percent of the property’s market value. The median home value in New Jersey is $327,900 and annual taxes on those homes average $8,104. Other states with high property taxes include Illinois, (2.30%), New Hampshire (2.20%), Connecticut (2.11%), Wisconsin (1.91%), Vermont (1.88%), Texas (1.81%), Nebraska (1.77%), New York (1.71%) and Rhode Island (1.66%).

States like Georgia (0.91%), Florida (0.93%), Missouri (0.97%) and Oklahoma (0.90%) have mid-range property tax rates. The average home value in Georgia is $166,800 and annual taxes on those homes are roughly $1,510.

Which States Have the Lowest Property Taxes?

Hawaii is the state with the lowest property tax rate at 0.27 percent of the property’s market value. The median home value in Hawaii is $587,700 and annual taxes on those homes average $1,607. Alabama (0.42%), Louisiana (0.53%), Colorado (0.53%), the District of Columbia (0.55%), Delaware (0.56%), South Carolina (0.57%), West Virginia (0.59%), Wyoming (0.61%) and Arkansas (0.63%) round out the top ten states with the lowest property tax rates.

What States Have the Highest Vehicle Taxes?

Virginia is the state with the highest vehicle taxes. Car owners can expect to pay over 4 percent in annual vehicle taxes. The annual taxes on a $25,000 vehicle total $1,011. Mississippi (3.50%), Rhode Island (3.46%), Connecticut (2.60%) and Missouri (2.60%) are other states with high vehicle taxes.

Louisiana has the lowest vehicle taxes at 0.10 percent. Vehicle taxes on a $25,000 car would be $25 in Louisiana. Michigan (0.59%), California (0.65%), Alabama (0.68%), Arkansas (1.01%) and Iowa (1.00%) also have low vehicle taxes.