When it comes to buying a home, buyers often focus on the mortgage payment, down payment or even closing costs, however, there is yet another cost to owning a home that comes after the deed is signed – property taxes.
Some states have relatively low property tax rates, while others can add up to quite a hefty sum. The highest rate is in New Jersey, where homeowners pay a property tax of 2.35% annually.
The average American pays about $2,149 per year in property taxes, according to the U.S. Census Bureau, however about $11.8 billion in property taxes go unpaid each year, according to the National Tax Lien Association.
WalletHub, a personal finance website, used data from the U.S. Census Bureau to show which states charged homeowners the most in property taxes.
This chart ranks the states by applying the state tax rate to the national median home price of $179,000.
However, perhaps a better way to determine the ranking of each state is to apply each state’s property tax rate to its own median home price. Using that data, here are the top 10 states that charge the most in property taxes each year:
10. Maryland – $3,142
Property tax rate: 1.1%
Median home price: $286,900
9. Wisconsin – $3,248
Property tax rate: 1.96%
Median home price: $165,800
8. Vermont – $3,795
Property tax rate: 1.74%
Median home price: $217,500
7. Rhode Island – $3,884
Property tax rate: 1.63%
Median home price: $238,000
6. Massachusetts – $3,989
Property tax rate: 1.2%
Median home price: $333,100
5. Illinois – $3,995
Property tax rate: 2.3%
Median home price: $173,800
4. New York – $4,600
Property tax rate: 1.62%
Median home price: $283,400
3. New Hampshire – $5,100
Property tax rate: 2.15%
Median home price: $237,300
2. Connecticut – $5,327
Property tax rate: 1.97%
Median home price: $270,500
1. New Jersey – $7,410
Property tax rate: 2.35%
Median home price: $315,900
