The average American household spends $2,969 on property taxes for real estate each year, it found, citing U.S. Census Bureau data. The 35% of renter households also pay property taxes, either directly or indirectly, as these affect both rent charges and the finances of state and local governments, the report said.
WalletHub compared the 50 states and the District of Columbia by using Census Bureau data to determine the highest and lowest real estate property tax rates. Researchers divided the median real estate tax payment by the median home value in each state. ThinkAdvisor used this figure for our ranking. So while Hawaii has the lowest effective real estate tax rate, at 0.27%, it would rank 19th on our list because of its high median property values.
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Michael S. Fischer
Michael S. Fischer is a longtime contributing writer for ThinkAdvisor. He previously reported on trade and intellectual property topics for the Economist Intelligence Unit and covered the hedge fund industry for MARHedge and Reuters News Service.
