Depending on where you live, property taxes can be a small inconvenience or a major burden. Apparently, New Jerseyans are burdened the most. According to a report this week from WalletHub, the Garden State had the highest property taxes in the U.S. again in 2020.
The state has a 2.49% effective tax rate, and the median home value is $335,600, according to the report. That means homeowners there pay about $8,362 on a property valued at that amount. How does that compare to the rest of the nation? The average American household spends $2,471 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 $442.
What other states have homeowners shelling out a lot?
Illinois was just above New Jersey at $4,419 and a 2.27 effective tax rate – median home sales there are $194,500. New Hampshire had the third-most-expensive property taxes at $5,701; and Connecticut, New York, Illinois and California are also in the top 10 states with the highest property taxes in 2020, with homeowners paying $5,898, $5,407, $4,419 and $3,818, respectively.
As for the state that pays the lowest, it’s Hawaii with an effective property tax rate of 0.28%, however, the median home value there is $615,300, bringing the annual tax bill to about $1,715, according to the report.