Owning a home is expensive — and costs can really rise out of sight if you have high property taxes.
Recently, finance website WalletHub analyzed real estate taxes in every state and the District of Columbia. To get the effective real-estate tax rate in each state, the site divided the median real-estate tax payment there by the median home price.
Following are the states that have the highest effective real-estate property tax rates, according to WalletHub.
We also include additional tax information from the Tax Foundation so you get a better picture of how much overall tax a resident might owe in each state.
Iowa
State’s effective real-estate tax rate: 1.49%
Although property taxes are high in Iowa, the relative affordability of homes in the state keeps the bill manageable. Annual taxes on a home priced at the median value in Iowa are $2,703.
Income tax rates in Iowa are 4.4% to 6%. The state sales tax rate is 6%.
Nebraska
State’s effective real-estate tax rate: 1.54%
Homeowners in Nebraska should expect to pay about $3,167 in property taxes each year for a home priced at the median value.
Income tax rates in Nebraska are 2.46% to 6.64%. The state sales tax rate is 5.5%.
Wisconsin
State’s effective real-estate tax rate: 1.59%
Up in Wisconsin, residents who own a home priced at the median value can expect to write a check for $3,670 each year to cover property taxes.
Income tax rates in Wisconsin are 3.54% to 7.65%. The state sales tax rate is 5%.
Texas
State’s effective real-estate tax rate: 1.63%
Annual taxes on a home priced at the median value in Texas are $3,872.
However, the state’s residents get some relief in their paycheck: There is no income tax in Texas. The state sales tax rate is 6.25%.
New York
State’s effective real-estate tax rate: 1.64%
Property can be quite expensive in some parts of New York state. In fact, annual taxes on a home priced at the median value in New York are $6,303.
Income tax rates in New York are 4% to 10.9%. The state sales tax rate is 4%.
Vermont
State’s effective real-estate tax rate: 1.78%
Vermont homeowners can face a stiff property tax bill. Those with a median-value home can expect to pay $4,859 annually.
Income tax rates in Vermont are 3.35% to 8.75%. The state sales tax rate is 6%.
New Hampshire
State’s effective real-estate tax rate: 1.89%
New Hampshire is one of the smallest states in size, but its property tax cost is among the biggest. Annual taxes on a home priced at the median value in New Hampshire are $6,372.
The income tax rate in New Hampshire is a flat 4% that is only levied on interest and dividends. There is no state sales tax in the Granite State.
Connecticut
State’s effective real-estate tax rate: 2.00%
Connecticut is another state in the Northeast where property taxes really sting. Annual taxes on a home priced at the median value are $6,484.
Income tax rates in Connecticut are 3% to 6.99%. The state sales tax rate is 6.35%.
Illinois
State’s effective real-estate tax rate: 2.11%
Illinois is the only state among the top six on this list that is not located on the East Coast. The owner of a median-value home in Illinois can expect an annual tax bill of $5,055.
The income tax rate in Illinois is a flat 4.95%. The state sales tax rate is 6.25%.
New Jersey
State’s effective real-estate tax rate: 2.33%
New Jersey residents pay a whopping $9,345 in annual taxes on a home priced at the median value.
Income tax rates in New Jersey are 1.4% to 10.75%. The state sales tax rate is 6.625%.
In other states, property tax rates are much more manageable. For more, check out “9 States With the Lowest Property Tax Rates.”
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