2020’s Property Taxes by State

• Real-Estate Tax Ranking
• Changes to Real Estate Tax Rates Over Time
• Red vs. Blue States
• Vehicle Property Tax Ranking
• Ask the Experts
• Methodology

John S Kiernan, Managing Editor
Feb 26, 2019

Depending on where you live, property taxes can be a small inconvenience or a major burden. The average American household spends $2,375 on property taxes for their homes each year, according to the U.S. Census Bureau, and residents of the 27 states with vehicle property taxes shell out another $441. Considering these figures and the rising amount of debt in America, it should come as no surprise that more than $14 billion in property taxes go unpaid each year, the National Tax Lien Association has found.

And though property taxes might appear to be a non-issue for the 36 percent of renter households, that couldn’t be further from the truth. We all pay property taxes, whether directly or indirectly, as they impact the rent we pay as well as the finances of state and local governments.

But which states have the largest property tax load, and what should residents keep in mind when it comes to meeting and minimizing their tax obligations? In search of answers, we analyzed the 50 states and the District of Columbia in terms of real-estate and vehicle property taxes. We also asked a panel of property-tax experts for practical and political insight. Read on for our findings and a full description of our methodology.

Real-Estate Tax Ranking

Real-Estate Property Tax Rates by State

*$204,900 is the median home value in the U.S. as of 2018, the year of the most recent available data.

Changes to Real Estate Tax Rates Over Time

Red vs. Blue States

Vehicle Property Tax Ranking

Vehicle Property Tax Rates by State

*$24,970 is the value of a Toyota Camry LE four-door Sedan (as of February 2020), the highest-selling car of 2019.

Ask the Experts

Property taxes are an extremely important issue since they impact all of our lives. But how should we incorporate them into our financial decision making? And how should policy makers across the U.S. approach them as well? For answers to those questions and more, we consulted a panel of tax and public-policy experts. You can check out their bios and responses to key questions below.

1. Do people consider property taxes when deciding where to move? Should they?
2. Should nonprofits pay property taxes?
3. Should local tax policy be adjusted to rely more or less on property taxes versus other forms of taxation?
4. Should more types of property be subject to property taxes? If yes, what types?
5. Should certain groups of people be exempt from property taxes or be taxed at a lower rate?

Methodology

In order to determine the states with the highest and lowest property taxes, WalletHub compared the 50 states and the District of Columbia by using U.S. Census Bureau data to determine real-estate property tax rates and applying assumptions based on national auto-sales data to determine vehicle property tax rates.

For real-estate property tax rates, we divided the “median real-estate tax payment” by the “median home price” in each state. We then used the resulting rates to obtain the dollar amount paid as real-estate tax on a house worth $204,900, the median value for a home in the U.S. as of 2018 according to the Census Bureau.

For vehicle property tax rates, we examined data for cities and counties making up at least 50 percent of a given state’s population and extrapolated this to the state level using weighted averages based on population size. For each state, we assumed all residents own the same vehicle: a Toyota Camry LE four-door sedan — 2019’s highest-selling car — valued at $24,970, as of February 2020.

Please note that Georgia formerly imposed vehicle property tax but replaced it in 2013 with a one-time tax imposed on a vehicle’s fair market value (FMV).

Videos for News Use:

Sources: Data used to create this ranking were collected from the U.S. Census Bureau and each state’s Department of Motor Vehicles.