American households spend an average of $2,149 in home property taxes every year. Tack on another $400 on average in vehicle property taxes for residents of 27 states and that’s a big chunk of change. If you’re looking to buy property, it might help to know which states are less expensive than others.
This report, from the property tax experts at WalletHub, uses current U.S. Census Bureau data to determine real estate tax rates and national auto sales statistics to determine vehicle property tax rates. Here are the five cheapest states for real estate property taxes:
- Hawaii: 0.27% real estate tax rate, or $1,406 in annual taxes on a home priced at state median value of $515,300.
- Alabama: 0.43% real estate tax rate, or $543 in annual taxes on a home priced at state median value of $125,500.
- Louisiana: 0.49% real estate tax rate, or $707 in annual taxes on a home priced at state median value of $144,100.
- Delaware: 0.54% real estate tax rate, or $1,243 in annual taxes on a home priced at state median value of $231,500.
- District of Columbia: 0.56% real estate tax rate, or $2,665 in annual taxes on a home priced at state median value of $475,800.
The most expensive states for real estate property tax include Wisconsin, Connecticut, New Hampshire, Illinois, and New Jersey. When it comes to states with vehicle property taxes, Louisiana, Montana, Michigan, California, and Alabama have the lowest rates. If you’re stuck in a state with steep property taxes, you might be able to appeal it and save some dough. You can see the full report at the link below.