Residents pay the highest property taxes in these states
Hawaii had the lowest effective property tax rate out of all 50 states, a new study found
A New Jersey millionaire's tax is back on the table as Governor Phil Murphy submits his $40 billion budget.
While Americans deal with a host of taxes that regularly take a chunk out of their incomes, property taxes are a particularly big deal for families in some parts of the country.
The average American family owes $2,375 in property taxes on their home annually, according to U.S. Census Bureau data analyzed by WalletHub.
But taxes are far higher in some states — liberal-leaning states, for example — tend to impose higher real estate property taxes when compared with more conservative states.
High property taxes are one reason wealthy taxpayers have fled certain states throughout recent years, particularly after the implementation of the $10,000 cap on state and local tax deductions. Residents have left states like New York, New Jersey and Connecticut for places with lower overall state and local tax burdens, like Florida and Arizona.
Here’s a look at the states with the highest property tax burdens, as compiled by WalletHub:
New Jersey
Effective real estate tax rate: 2.47 percent.
Annual taxes on $205,000 home: $5,064.
Annual taxes on home priced at median state value ($327,900): $8,104.
NEW JERSEY MILLIONAIRE'S TAX BACK ON THE TABLE AS GOV. PHIL MURPHY SUBMITS BUDGET
Illinois
Effective real estate tax rate: 2.3 percent.
Annual taxes on $205,000 home: $4,705.
Annual taxes on home priced at median state value ($187,200): $4,299.
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New Hampshire
Effective real estate tax rate: 2.2 percent.
Annual taxes on $205,000 home: $4,498.
Annual taxes on home priced at median state value ($252,800): $5,550.
Connecticut
Effective real estate tax rate: 2.11 percent.
Annual taxes on $205,000 home: $4,317.
Annual taxes on home priced at median state value ($272,700): $5,746.
Wisconsin
Effective real estate tax rate: 1.91 percent.
Annual taxes on $205,000 home: $3,904.
Annual taxes on home priced at median state value ($173,600): $3,308.
Vermont
Effective real estate tax rate: 1.88 percent.
Annual taxes on $205,000 home: $3,853.
Annual taxes on home priced at median state value ($223,700): $4,206.
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Texas
Effective real estate tax rate: 1.81 percent.
Annual taxes on $205,000 home: $3,703.
Annual taxes on home priced at median state value ($161,700): $2,922.
Nebraska
Effective real estate tax rate: 1.77 percent.
Annual taxes on $205,000 home: $3,634.
Annual taxes on home priced at median state value ($147,800): $2,621.
New York
Effective real estate tax rate: 1.71 percent.
Annual taxes on $205,000 home: $3,497.
Annual taxes on home priced at median state value ($302,200): $5,157.
Rhode Island
Effective real estate tax rate: 1.66 percent
Annual taxes on $205,000 home: $3,407.
Annual taxes on home priced at median state value ($249,800): $4,154.
Pennsylvania
Effective real estate tax rate: 1.59 percent.
Annual taxes on $205,000 home: $3,257.
Annual taxes on home priced at median state value ($174,100): $2,767.
On the other hand, Hawaii had the lowest property taxes, with an effective rate of 0.27 percent, followed by Alabama (.42 percent) and Louisiana (0.53 percent).