We already knew New Jersey has the highest property taxes per capita in the United States. Now the Tax Foundation has crunched data for all 50 states again to determine where homeowners pay the highest property taxes as a percentage of home values – and once again New Jersey is No. 1.
The Tax Foundation released a new chart Wednesday showing property taxes expressed as a percentage of residential home value to offer a broader perspective for property tax comparisons that accounts for higher home values, which are often linked to higher property tax bills.
According to the Tax Foundation, New Jersey homeowners pay 2.1% of their home’s value in property taxes – the highest effective rate on owner-occupied property in the U.S., followed by Illinois (1.97%), New Hampshire (1.89%), Vermont (1.76%), Connecticut (1.73%) and Texas (1.6%), the foundation said.
On the other end of the spectrum, the states where homeowners paid the lowest effective rate on owner-occupied property are Hawaii (0.31%), Alabama (0.37%), Louisiana and Wyoming (both 0.51%), Colorado (0.52%) and West Virginia (0.53%). To see how all 50 states compare, go here.
“Some states with high property taxes, like New Hampshire and Texas, rely heavily on them in lieu of other major tax categories,” said Tax Foundation Policy Analyst Janelle Cammenga. “This often involves greater devolution of authority to local governments, which are responsible for more government services than they are in states with greater reliance on state-level revenues. Other states, like New Jersey and Illinois, impose high property taxes alongside high rates in the other major tax categories.”
Back in May, the Tax Foundation analyzed population data and property taxes collections to calculate the per capita property tax collection figure for each state. New Jersey ranked No. 1 in that comparison as well, collecting $3,378 per person in property taxes – the highest in the nation – followed by New Hampshire ($3,362), Connecticut ($3,107), New York ($3,025), and Vermont ($2,738).
The states with the lowest property taxes collected per capita were Alabama ($598), Oklahoma ($771), Arkansas ($776), Tennessee ($799), and New Mexico ($832). To read how all 50 states compare in the Tax Foundation’s per capita property tax rankings in May go here.
