Hawaii leads the nation with the lowest real estate tax rate while New Jersey is weighed down with the highest rate, according to a new data report by WalletHub.
In an analysis of the 50 states and the District of Columbia, WalletHub found Hawaii has an effective real estate tax rate of 0.27%. For a residence with the state’s median home value of $839,100, Hawaii homeowners pay an annual real estate tax of $2,239.
The second lowest real estate tax rate is the 0.38% level in Alabama. For a residence with the state’s median home value of $209,900, Alabama homeowners pay an annual real estate tax of $788.
Thirty-one states have real estate tax rates of under 1% while only two have rates above 2%: Illinois at 2.1% and New Jersey at 2.11%.
WalletHub noted the average household pays $3,119 in real estate property taxes, while Blue States have 27.02% higher real estate property taxes, averaging $3,594, compared to Red States, averaging $2,830.
“Some states charge no property taxes at all, while others charge an arm and a leg,” said Chip Lupo, WalletHub analyst. “Americans who are considering moving and want to maximize the amount of money they take home should take into account property tax rates, in addition to other financial factors like the overall cost of living, when deciding on a city.”
