Home Macroeconomics Property Taxes by State – 2022

Property Taxes by State – 2022

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Property Taxes by State – 2022

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NAHB evaluation of the 2022 American Neighborhood Survey information reveals that New Jersey leads the nation with the best common annual actual property tax (RET) invoice ($9,285)—$8,425 greater than yearly property taxes paid by Alabama’s householders ($860). The dimensions of this disparity grew 1.1% in 2022 and has elevated 9.3% since 2017. Vermont was the one state for which the typical actual property tax invoice declined over the 12 months.

The map under illustrates the focus of excessive common property tax payments within the Northeast and on the West Coast. In distinction, dwelling homeowners in Southern states (excluding Texas) pay a number of the lowest RET payments within the nation.

As property values differ extensively by state, controlling for this variable produces a extra instructive state-by-state comparability. Consistent with prior analyses, NAHB calculates this by dividing mixture actual property taxes paid by the combination worth of owner-occupied housing models inside a state. The efficient tax charge might be expressed both as a proportion of dwelling worth or as a greenback quantity levied per $1,000 of this worth.

New Jersey additionally has the excellence of imposing the best efficient property tax charge—1.85% or $18.52 per $1,000 of dwelling worth–though Illinois adopted carefully behind at 1.84%. In distinction, Hawaii boasted the bottom common charge within the nation (0.27%) equal to $2.68 per $1,000 of worth. Nevertheless, this low charge mixed with extraordinarily excessive dwelling values ends in middle-of-the-pack per-homeowner property tax payments. Hawaii’s common owner-occupied dwelling worth ($948,025) the best within the nation, with California an in depth second. They’re additionally the one state’s with a median dwelling worth higher than $700,000 (Washington ranks third with a median of $684,427).

The composition of the ten states with the best RET payments and property tax charges has remained roughly unchanged since 2017, though Wisconsin fell from having the Sixth-highest charge in 2021 to the Tenth-highest in 2022.

Interstate variations amongst dwelling values clarify some, however not all, of the variance in actual property tax payments throughout the nation. Texas is an illustrative instance of a state by which dwelling values clarify little on the subject of actual property tax payments confronted by householders. Whereas Texas ranks within the backside half of states when it comes to common dwelling values, it’s eleventh in common actual property taxes paid and imposes the Seventh-highest common property tax charge.

After all, neither dwelling values nor a state’s reliance on property tax income is totally chargeable for the geographic variance of property tax charges and revenues. State spending per resident, the character of this authorities spending, the prevalence of homeownership inside a state, and demographics all have an effect on tax coverage and, thus, the sort and magnitude of tax collections. These variables mix to elucidate the variance that the 2 components mentioned right here don’t totally seize.



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