High Posts – Property Taxes by State: 2023

With the top of 2024 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted probably the most readers during the last yr. In October, Jesse Wade shared the typical actual property tax by state and likewise an efficient price controlling for house worth.

Nationally, throughout the 86 million owner-occupied houses within the U.S., the typical annual actual property taxes paid in 2023 was $4,112, in line with NAHB evaluation of the 2023 American Neighborhood Survey. Owners in New Jersey continued to pay the best actual property taxes, paying a median of $9,572, 30.6% greater than the second highest, New York, at $7,329 . On the opposite finish of the distribution, owners in Alabama paid the bottom common quantity of actual property taxes at $978. The map under exhibits the geographic variation of common annual actual property taxes (RETs) paid.

In comparison with 2022, each state noticed will increase within the common quantity of actual property taxes paid. The most important share improve was in Hawaii, up 21.1% from $2,541 to $3,078.  The smallest improve was in New Hampshire, up 1.1% from $6,385 to $6,453.

Common Efficient Property Tax Charges

Whereas common annual actual property taxes paid is essential, it supplies an incomplete image. Property values range throughout states, which explains some, if not most, of the variation throughout the nation in common annual actual property taxes. To manage for property values and create a extra informative state-by-state evaluation, NAHB calculates the typical efficient property tax price by dividing combination actual property taxes paid by combination worth of owner-occupied housing inside every state. For instance, the combination actual property taxes paid throughout the U.S. was $352.3 billion with an combination worth of owner-occupied actual property totaling $38.8 trillion in 2023. Utilizing these two quantities, the typical efficient property tax price nationally was $9.09 ($352.3 billion/$38.8 trillion) per $1,000 in house worth. This efficient price may be expressed as a share of house worth or as a greenback quantity taxed per $1,000 of a house’s worth. The map under shows the efficient price by state under.  

Illinois, a change from New Jersey in 2022 , had the best efficient property tax price at $18.25 per $1,000 of house worth. According to 2022, Hawaii had the bottom efficient property tax price at $3.18 per $1,000 of house worth. Moreover, Hawaii had the biggest improve over the yr, up 18.8% from $2.68 in 2022. Twenty states noticed their efficient property tax charges fall between 2022 and 2023, with the biggest lower occurring in West Virginia the place it fell 6.0%, from $5.06 to $4.75 per $1,000.

Intrastate Variation: Examples from New York

Whereas property taxes clearly range by state, there additionally exists variation inside states themselves. The newest county degree knowledge obtainable comes from 2022 5-year ACS estimates. Analyzing these knowledge , New York confirmed the best diploma of variation of common property taxes paid and efficient actual property tax charges throughout the counties of any state. House house owners in Westchester County on common paid $14,156 in actual property taxes in 2022, the best of any county in New York. The bottom quantity was in Hamilton County, the place house house owners paid on common $2,827 in actual property taxes.

For efficient property tax charges, New York continues to inform the story of intrastate variation. As proven above, Westchester County paid the upper common annual actual property taxes in 2022, however efficient property tax price, which accounts for house worth, Westchester’s efficient property tax price is close to the center at $18.34.  House house owners in Monroe County appear to get the brief finish of the stick, paying at a price of $26.27 per $1,000 of house worth, the best in New York. The bottom efficient property tax price was in Kings County, paying a mere $5.30 per $1,000 of house worth in taxes.