What State has the highest real estate taxes?
When you buy a home you receive a deed and title that provides you with proof of ownership of the home. Title gives you a whole bundle of rights – like the rights of possession, control, enjoyment and disposition.
But you don’t get every right as the government keeps a number of rights – like the right of taxation, access and zoning control.
If you want to be really cynical about it, when you buy a home you don’t only buy an asset but you also buy a liability as you promise to pay the government a number of purchase and annual real estate taxes.
A real estate tax is a government tax that can be levied on the Federal, State, County, City and Special Tax District level. The taxes are based on the physical location of the property as well as the value and use of the property.
It’s impossible to give a one size fits all breakdown of real estate taxes as they vary considerably from County to County. Tax-Rates.org does a good job of breaking down the median tax rate by State, County and Town. You can also use their tax calculator to estimate real estate taxes for any County in the USA.
Highest Real Estate Tax Rates
Tax-Rates.org also breaks down the median tax rates per property value for each State. The rate is expressed as a percentage of the home’s value. As an example, if the home is valued at $400,000 and the tax burden is $6,000 per year, the tax rate is 1.5%.
The lists below will give you a feel for State-by-State tax rates but each County has different tax rates.
You also need to be aware that each State has different income tax rates. As an example, Texas has no State income tax but has a high real estate tax rate. The bottom line is that each State will get their piece of you, one way or another.
Top 10 State Real Estate Tax Rates
New Jersey – 1.89%
New Hampshire – 1.86%
Texas – 1.81%
Nebraska – 1.76%
Wisconsin – 1.76%
Illinois – 1.73%
Connecticut – 1.63%
Michigan – 1.62%
Vermont – 1.59%
North Dakota – 1.42%
Top 10 Lowest Real Estate Tax Rates
New Mexico – 0.55%
Mississippi – 0.52%
Arkansas – 0.52%
South Carolina – 0.5%
West Virginia – 0.49%
District of Columbia – 0.46%
Delaware – 0.43%
Alabama – 0.33%
Hawaii – 0.26%
Louisiana – 0.18%