The average annual real estate tax bill in New Jersey is $8,180, which is more than 12 times what the average Alabama homeowner pays each year.
New Jersey remains expensive even after controlling for property value. NAHB Eye on Housing says that the state also has the highest effective property tax rate (2.13 percent) in the nation, as measured by taxes paid per $1,000 of home value. In comparison, Hawaii residents have an effective property tax rate of 0.28 percent.
Real estate tax bills vary from state to state.
Texas is an illustrative example of a state in which home values hardly, if at all, explain real estate tax bills faced by homeowners. While Texas ranks only 32nd in the country for average home values, it is 12th in average real estate taxes paid. Other factors are clearly at play, and state and local government financing turns out to be a major one.