Report: New York, New Jersey among highest property taxes in country
(The Center Square) — New York and New Jersey homeowners pay among the highest property taxes in the country, according to a new report by the personal finance website WalletHub.
The Empire State has the eighth highest property taxes in the U.S., according to the report – 2023’s Property Taxes by State, which also includes Washington D.C. The annual tax on a $244,900 home, the median home value in the U.S. in 2021, is an estimated $4,231 in New York.
The median home value in New York is $340,600. The tax on a New York home at that value is an estimated $5,884, the report said.
WalletHub compared U.S. Census Bureau data for the 50 states and Washington, D.C., to determine the property tax rankings and divided the median real estate tax payment by the median home price in each state to produce an effective real estate tax rate.
Hawaii has the lowest property taxes in the U.S., while New Jersey has the highest, the report said. The tax on a $244,900 home in Hawaii is an estimated $700. The tax on a home of the same value in New Jersey is an estimated $6,057.
The average American household spends $2,690 on property taxes for their homes each year, according to WalletHub, which cited U.S. Census Bureau figures.
Meanwhile, residents of 26 states with vehicle property taxes — including Massachusetts, Connecticut and Rhode Island — shell out another $444, Wallethub said.
The mounting costs have contributed to rising individual debt, with more than $14 billion in property taxes going unpaid each year, according to the National Tax Lien Association.
Wallethub Managing Editor John Kiernan said property tax burdens aren’t just a problem for homebuyers, but also for renters who account for about 35% of U.S. households.
“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,” Kiernan wrote in the report.
