Aside from home prices, many Americans need to consider an area’s property taxes to ensure their future property fits into their budget. Homeowners pay an average of $2,471 on property taxes each year, according to the New York Times. In states where property taxes are highest, monthly tax payments on a median-priced home can be more than half of the mortgage payment. Property tax data comes from WalletHub’s analysis of 2019 U.S. census figures. The state with the highest property tax is New Jersey. Monthly mortgage costs for a median-priced home valued at $335,600 with a 30-year fixed mortgage rate at 3.25% with a 20% down payment would equate to $1,168, in addition to $696 in real estate taxes.
But property taxes aren’t that simple. They’re often imposed not just by states, but by cities, counties and local school boards too. In some areas, like many of New York City’s suburbs, home prices and tax rates are well above the state median. Also, today’s prices may be higher than those in the study, given the suburban real estate boom that has unfolded amid the pandemic. Finally, build in a buffer for increases, because tax payments, unlike those for many mortgages, are not fixed — your state or county will reassess the value of your property eventually.
This week’s chart, based on WalletHub’s findings, shows the places where real estate taxes are highest and lowest.