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New Jersey, Illinois, Texas Demand Highest Property Taxes

More than $277 billion in property taxes were levied on U.S. single-family homes in 2016—an average of $3,296 per property, according to a 2016 property tax analysis report released by ATTOM Data Solutions [1] on Thursday.

The analysis, which looked at property tax data collected from county tax assessors across the nation, broke down last year’s property taxes and estimated market values at the state-, metro-, and county-level. What it found was an effective national property tax rate of 1.15 percent levied against more than 84 million single-family homes in the U.S.

But some geographic areas saw a much higher rate than that, with one state (New Jersey) clocking in with an effective property tax rate of 2.31 percent—more than twice the national average. Also on the high end of tax rates were Illinois (2.13 percent), Texas (2.06 percent), New Hampshire (2.03 percent), and Vermont (2.02 percent.) Connecticut, Pennsylvania, New York, Ohio, and Rhode Island weren’t far behind.

At a metro level, the highest rates were seen in the Northeast. The Binghamton, New York, area saw the highest property tax rates at 3.10 percent. At No. 2 was Rochester, New York, with a 2.99 percent effective property tax rate, followed by Rockford, Illinois (2.96 percent); Atlantic City, New Jersey (2.77 percent); and Syracuse, New York (2.67 percent.)

On the opposite end of the spectrum, the nation’s lowest property tax rates—by state—were in Hawaii (0.32 percent), Alabama (0.48 percent) and Colorado (0.52 percent). Tennessee, Delaware, West Virginia, South Carolina, Nevada, Utah, and Arkansas followed closely after.

The metro with the lowest property tax rate was Honolulu, with a 0.32 percent effective rate for 2016. Rounding out the top five were Montgomery, Alabama (0.35 percent); Tuscaloosa, Alabama (0.36 percent); Florence, South Carolina (0.44 percent); and Colorado Springs, Colorado (0.44 percent).

Though the national average for property taxes came out to right around $3,300 per home, nine counties in the U.S. averaged annual taxes of $10,000 or more. Those included Westchester, Rockland, and Nassau in New York; Essex, Bergen, Union, and Morris in New Jersey; Marin in California; and Fairfield in Connecticut. Another 32 counties, located mostly in Illinois, Texas, Virginia, and Massachusetts, saw average taxes of $7,000 or more per home.

ATTOM’s analysis also found that property tax rates were slightly higher on owner-occupied homes than on investment properties, which had rates of 1.21 percent and 1.03 percent, respectively.

To see the full results of the analysis, visit RealtyTrac.com [2].