Variances Of Property Tax Rate Across And Within Counties

April 11, 2016

We all know that property tax rates vary considerably from state to state. But what may slip under the radar is just how widely property tax rates can vary on a county-by-county basis or even within the same county. As the NAHB Eye on Housing blog reports, the highest rate areas within a county often display rates that are multiple times higher than the lowest rate areas within the same county.

In order to get an accurate comparison of true tax burden for homes in various locations, an ‘effective property tax rate’ is used. The effective property tax rate is the amount of property tax paid divided by the value of the home as reported by the homeowners.

The NAHB report mapped the effective property tax rates for more than 3,100 counties. Many of Louisiana’s counties ranked at the low end of the spectrum with 12 counties registering property tax rates that are effectively under $2 per $1,000 of value. Sliding to the highest end of the national spectrum are Orleans County and Monroe County in New York and Camden County, N.J. with property tax rates averaging close to $29.

While states like Louisiana or Colorado have universally low tax rates and states like New Jersey or Illinois have very high tax rates, it isn’t always so cut and dry. Take Arizona, for example, which has counties with average effective real estate taxes per $1,000 ranging from $11 or higher down to less than $3 all existing within the same county.

To read the full report and to view accompanying maps, follow the link below.

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