Where are the lowest (and highest) property taxes?
The coronavirus pandemic has closed many doors over the past year, from restaurants to gyms, theaters and offices. But it has also opened up new opportunities with the expansion of video technology and remote working, which employers are now embracing. Demand for new homes is increasing across the country, and many homeworkers, freed from their travels, are free to consider relocating anywhere that fits their budget.
But before you get too excited about this country house, which seems to cost about the same amount you would get for selling your apartment, check the property taxes. They may just be off the charts.
For an idea of ââwhat’s affordable, check out WalletHubrecent median property tax rankings in the 50 states and the District of Columbia, which were determined using the latest available figures from the U.S. Census (2019) for median home value and median property taxes paid.
The average American household spends $ 2,471 in property taxes each year. In places with the highest median property taxes, the monthly payment of tax on a median price home is often more than half of the mortgage payment. Topping the list is New Jersey, where the median-priced home was valued at $ 335,600. For this home, a 30-year 3.25% fixed mortgage with a 20% down payment would require a monthly mortgage payment of $ 1,168, plus approximately $ 696 in property taxes. Once you know the tax rate, an online mortgage calculator like ours can determine the monthly payments at any interest rate and price.
But property taxes are not that simple. They are often imposed not only by states, but also by cities, counties and local school boards. In some areas, such as many New York suburbs, house prices and tax rates are well above the state median. Additionally, prices today may be higher than those in the study, given the suburban real estate boom that unfolded in the midst of the pandemic. Finally, put a buffer in place for increases, as tax payments, unlike those on many mortgages, are not fixed – your state or county will eventually re-value your property.
This week’s chart, based on WalletHub, shows where property taxes are highest and lowest.
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