Although Millennials Are Choosing To Rent vs. Buy, Those That Do Purchase a Home, Will Tangle With Property Taxes

How Does Your State Rank:

Property taxes, depending which state you live in, are insignificant to some and a drain on your income for others. The average American household spends $2,149 (not in NJ) on property taxes for their homes each year, according to the U.S. Census Bureau, and residents of the 27 states with vehicle property taxes shell out another $402 Considering these figures and the debt-fueled environment to which we have grown so accustomed, it should come as no surprise that roughly $11.8 billion in property taxes go unpaid each year, the National Tax Lien Association has found.

And though property taxes might appear to be a non-issue for the 37 percent of renter households, that couldn’t be further from the truth. 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.

A recent survey by Wallet Hb ranks the best and worst states as it relates to property taxes:

Hover over your state to see where it ranks (lower the better):

Source: WalletHub

Real-Estate Property Taxes by State

Rank	State	Effective Real-Estate Tax Rate	Annual Taxes on $179K Home*	State Median Home Value	Annual Taxes on Home Priced at State Median Value
1	Hawaii	0.27%	$487	$515,300	$1,406
2	Alabama	0.43%	$773	$125,500	$543
3	Louisiana	0.49%	$876	$144,100	$707
4	Delaware	0.54%	$959	$231,500	$1,243
5	District of Columbia	0.56%	$1,000	$475,800	$2,665
6	South Carolina	0.57%	$1,019	$139,900	$798
7	West Virginia	0.58%	$1,044	$103,800	$607
8	Colorado	0.60%	$1,073	$247,800	$1,489
9	Wyoming	0.61%	$1,097	$194,800	$1,196
10	Arkansas	0.62%	$1,111	$111,400	$693
11	Utah	0.68%	$1,218	$215,900	$1,472
12	New Mexico	0.74%	$1,324	$160,300	$1,188
13	Tennessee	0.75%	$1,335	$142,100	$1,062
14	Idaho	0.76%	$1,366	$162,900	$1,246
15	Mississippi	0.79%	$1,408	$103,100	$813
16	Virginia	0.80%	$1,420	$245,000	$1,948
T-17	California	0.81%	$1,438	$385,500	$3,104
T-17	Arizona	0.81%	$1,446	$167,500	$1,356
T-19	Montana	0.85%	$1,525	$193,500	$1,652
T-19	Kentucky	0.85%	$1,511	$123,200	$1,042
T-19	North Carolina	0.85%	$1,524	$154,900	$1,322
T-19	Nevada	0.85%	$1,523	$173,700	$1,481
23	Indiana	0.87%	$1,560	$124,200	$1,085
24	Oklahoma	0.88%	$1,569	$117,900	$1,036
25	Georgia	0.94%	$1,685	$148,100	$1,397
26	Missouri	1.00%	$1,790	$138,400	$1,387
27	Florida	1.06%	$1,894	$159,000	$1,686
T-28	Oregon	1.08%	$1,929	$237,300	$2,563
T-28	Washington	1.08%	$1,931	$259,500	$2,805
30	Maryland	1.10%	$1,956	$286,900	$3,142
31	North Dakota	1.12%	$2,000	$153,800	$1,722
T-32	Alaska	1.18%	$2,112	$250,000	$2,956
T-32	Minnesota	1.18%	$2,110	$186,200	$2,200
34	Massachusetts	1.20%	$2,139	$333,100	$3,989
35	Maine	1.30%	$2,321	$173,800	$2,259
36	South Dakota	1.34%	$2,389	$140,500	$1,879
37	Kansas	1.40%	$2,502	$132,000	$1,849
38	Iowa	1.48%	$2,649	$129,200	$1,916
39	Pennsylvania	1.53%	$2,725	$166,000	$2,533
40	Ohio	1.56%	$2,794	$129,900	$2,032
41	New York	1.62%	$2,899	$283,400	$4,600
42	Rhode Island	1.63%	$2,915	$238,000	$3,884
43	Vermont	1.74%	$3,116	$217,500	$3,795
44	Michigan	1.78%	$3,172	$122,400	$2,174
45	Nebraska	1.85%	$3,308	$133,200	$2,467
46	Texas	1.90%	$3,386	$136,000	$2,578
47	Wisconsin	1.96%	$3,499	$165,800	$3,248
48	Connecticut	1.97%	$3,517	$270,500	$5,327
49	New Hampshire	2.15%	$3,838	$237,300	$5,100
50	Illinois	2.30%	$4,105	$173,800	$3,995
51	New Jersey	2.35%	$4,189	$315,900	$7,410