Property Tax Rates Vary Widely by State and Geography

Economics
Published

There is a nearly $8,000 difference between what residents of the state with the highest property taxes pay compared to those who live in the state with the lowest annual tax bill.

NAHB analysis of data from the 2019 American Community Survey shows that in 2019, New Jersey continued its perennial distinction as the state with the highest average annual tax bill per home owner. Garden State home owners paid an average of $8,687 in real estate taxes in 2019.

At the opposite end of the spectrum, Alabama ranked 50th among home owners in average real estate tax paid per year. There, the average real estate tax bill totaled just $713.

The top five states with the highest average annual property taxes are all located in the Northeast:

Rank Average Real Estate Taxes Paid Per Year
1. New Jersey $8,687
2. Connecticut $6,593
3. New York $6,410
4. New Hampshire $5,843
5. Massachusetts $5,495

The states with the lowest average annual property taxes are primarily located in the South:

Rank Average Real Estate Taxes Paid Per Year
50. Alabama $713
49. West Virginia $815
48. Mississippi $1,038
47. Arkansas $1,046
46. Louisiana $1,080

NAHB economist David Logan looks at the national picture and provides further analysis in this Eye on Housing blog post.

Find out where your state stands on the list.

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