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According to a new study from Owners.com, the city of Virginia Beach, Virginia, is the country's leading home buying market.
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The amount of property taxes you pay often depends on your county, city or district. And if you are a buyer this spring, this is another important factor to consider when looking for a home.
Property taxes largely fund public schools but also other local services such as roads and police. Part of your monthly mortgage payment goes to property taxes. Therefore, if your budget is tight, a higher property tax bill could be expensive.
For example, in Buffalo and Syracuse, New York State, the portion of the monthly bill related to property taxes can often be higher than the mortgage-related portion because Taxes are so high, says Lawrence Yun, chief economist of the National Association of Realtors.
"The property tax is an essential piece of information in the decision to buy a home and an object on which a buyer should ask questions before proceeding with the purchase "Yun says.
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Property taxes are hyperlocal. Some states levy a property tax, but most of these taxes are imposed at the county, city or district level. This means that a house in the street from your home could have a higher tax burden or less burdensome than yours.
Why property taxes vary
In an extreme historical example, two almost identical houses in the same subdivision that covered the boundary line between Concord and Bow, New Hampshire, had very different property tax charges, according to Joan Youngman, director of the department of assessment and taxation of the Lincoln Institute of Land Policy, a think tank on taxation and land use. Concord's property tax rate was about twice as high as Bow's, even though both had the same high school.
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Why was it? Because Bow's most important property taxpayer was a power station, rather than his few residents. In Concord, homeowners bore a greater share of the tax burden. The amount of taxes paid by commercial, industrial and utility owners can affect your rate.
The value of homes is another reason why one city imposes a higher property tax than another. Areas where the value of housing is higher may impose a lower tax rate, but still generate a lot of income.
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Take California and Ohio. In Ohio, the property tax rate is the 12th highest in the country with 1.56%. A median house in Ohio – valued at $ 129,900 – generates $ 2,032 in property taxes. But in California, the tax rate is well below 0.81% – the 34th lowest in the United States – but the median home (valued at $ 385,500) raises $ 3,104 in property taxes.
Other tax considerations
Property taxes are not the only tax burden that residents should take into account, says Youngman. For example, Bridgeport, Connecticut, has the highest property tax rate, but no sales taxes or local taxes. Birmingham, Alta., On the other hand, has the lowest 11th property tax, but "a host of other taxes," she said.
"If you combine them, Birmingham's tax burden is actually higher than Bridgeport's," she said.
State Property Taxes
Overall, the effective property tax rate for homeowners is 1.2% in the United States. On a median house of $ 178,600, the annual tax bill is $ 2,149. Eighteen states have effective rates at or above the US rate, while 32 states and the District of Columbia have lower rates.
In the United States, TODAY relies on data from the Lincoln Institute of Land Policy to classify property taxes among states based on the effective tax rate of homeowners, not the median tax paid, which is affected by the overall value of the dwellings. If your status does not appear in the lists below, check out the Lincoln Institute online tool to find out where it is.
The worst states for property taxes
New Jersey
Tax rate: 2.35%
Median value of the house: $ 315,900
Median fee paid: $ 7,410
Illinois
Tax rate: 2.3%
Median value of the house: $ 173,800
Median fee paid: $ 3,995
New Hampshire
Tax rate: 2.15%
Median value of the house: $ 237,300
Median fee paid: $ 5,100
Connecticut
Tax rate: 1.97%
Median value of the house: $ 270,500
Median fee paid: $ 5,327
Wisconsin
Tax rate: 1.96%
Median value of the house: $ 165,800
Median fee paid: $ 3,248
Texas
Tax rate: 1.9%
Median value of the house: $ 136,000
Median fee paid: $ 2,578
Nebraska
Tax rate: 1.85%
Median value of the house: $ 133,200
Median fee paid: $ 2,467
Michigan
Tax rate: 1.78%
Median value of the house: $ 122,400
Median fee paid: $ 2,174
Vermont
Tax rate: 1.74%
Median value of the house: $ 217,500
Median fee paid: $ 3,795
Rhode Island
Tax rate: 1.63%
Median value of the house: $ 238,000
Median fee paid: $ 3,884
Best statements for property taxes
Hawaii
Tax rate: 0.27%
Median value of the house: $ 515,300
Median fee paid: $ 1,406
Alabama
Tax rate: 0.43%
Median value of the house: $ 125,500
Median fee paid: $ 543
Louisiana
Tax rate: 0.49%
Median value of the house: $ 144,100
Median fee paid: $ 707
Delaware
Tax rate: 0.54%
Median value of the house: $ 231,500
Median fee paid: $ 1,243
Washington DC.
Tax rate: 0.56%
Median value of the house: $ 475,800
Median fee paid: $ 2,665
Caroline from the south
Tax rate: 0.57%
Median value of the house: $ 139,900
Median fee paid: $ 798
West Virginia
Tax rate: 0.58%
Median value of the house: $ 103,800
Median fee paid: $ 607
Colorado
Tax rate0.6%
Median value of the house: $ 247,800
Median fee paid: $ 1,489
Wyoming
Tax rate: 0.61%
Median value of the house: $ 194,800
Median fee paid: $ 1,196
Arkansas
Tax rate: 0.62%
Median value of the house: $ 111,400
Median fee paid: $ 693
You will have to open this piggy bank if you want to live in one of these expensive metro areas. Sean Dowling of Buzz60 has more.
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Read or share this story: https://www.usatoday.com/story/money/2019/05/20/property-taxes-state-which-has-highest-and-lowest/3697929002/
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