10 States With Highest Property Tax Rates

The average annual property tax in the U.S. was $3,296 in 2016, with an effective tax rate of 1.15 percent, according to a new report released by ATTOM Data Solutions. The report encompasses a 2016 property tax analysis of more than 84 million single-family homes.

Read more: How You Can Address Your Clients’ Property Tax Concerns

The effective tax rate, according to ATTOM Data Solutions, is the average annual property tax expressed as a percentage of the average estimated market value of homes in a geographic area. ATTOM Data Solutions identified the following 10 states as having the highest effective property tax rates in 2016:

  1. New Jersey: 2.31 percent
  2. Illinois: 2.13 percent
  3. Texas: 2.06 percent
  4. New Hampshire: 2.03 percent
  5. Vermont: 2.02 percent
  6. Connecticut: 2 percent
  7. Pennsylvania: 1.89 percent
  8. New York: 1.88 percent
  9. Ohio: 1.68 percent
  10. Rhode Island: 1.64 percent

“Ohio, in recent history, has among the highest average property taxes in the nation, even though housing is among the most affordable,” says Matthew Watercutter, senior regional vice president and broker of record for HER, REALTORS®, in Dayton, Ohio. “Typically, the more populated urban and suburban counties have a higher effective tax rate than their more rural counterparts. This issue affects the affordability of housing, as property taxes do affect the ratios for potential buyers. By continually raising property taxes to support schools, as well as other infrastructure in lieu of other funding sources such as sales tax—which generates revenues from property owners as well as non-property owners—property taxes limit a buyer’s ability to purchase as well as the property’s ability to appreciate in value.”

Among the 217 metro areas with populations of at least 200,000, ATTOM Data Solutions reported these areas as having the highest effective property tax rates:

  1. Binghamton, N.Y.: 3.10 percent
  2. Rochester, N.Y.: 2.99 percent
  3. Rockford, Ill.: 2.96 percent
  4. Atlantic City, N.J.: 2.77 percent
  5. Syracuse, N.Y.: 2.67 percent

Source: RealtyTrac

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