When looking to buy a home, many buyers might forget that they're not just responsible for the mortgage. There are several other expenses that homeowners must pay, like homeowners association fees for some, insurance, routine maintenance and, of course, property taxes.
If you're looking to buy real estate in New Jersey, one report suggests property taxes will cost you quite a bit more than it would in other states.
According to personal finance website WalletHub, New Jersey has the highest real estate tax rate in the nation.
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With some of the highest median home values in the country, this makes New Jersey the most expensive state for property taxes.
In this recent report − which ranked all 50 states and the District of Columbia by their real estate tax rates − New Jersey was found to have an effective real estate tax rate of 2.33%. With a state median home value of about $401,400, this means that homeowners must pay $9,345 in property taxes annually.
How New Jersey compares to other states
Right behind New Jersey, Illinois has the second highest real estate tax rate in the nation at 2.11%. Homeowners there pay about $5,055 in property taxes annually on a home with a median value of $239,100. Connecticut ranks third with a real estate tax rate of 2%. With a median home value of $323,700, homeowners pay about $6,484 annually. New Hampshire and Vermont make up the rest of the top five, with rates of 1.89% and 1.78%, respectively.
On the other end, Hawaii has the lowest tax rate in the nation at 0.27%. With a median home value of $764,800, homeowners pay about $2,054 in property taxes annually. Alabama has the second lowest real estate property tax rate at 0.39%, with homeowners paying $701 annual in taxes on a median value home of $179,400. Colorado, Nevada and South Carolina make up the remaining five states with the lowest tax rates at 0.50%, 0.53% and 0.55%, respectively.
How was the ranking determined
WalletHub used U.S. Census Bureau data to determine real estate property tax rates for all 50 states and the District of Columbia. This was done by dividing the median real estate tax payment by the median home price in each state, and those resulting rates were used to determine the amount paid for real estate tax on a home worth $281,900 — the median value for a home in the U.S. as of 2022. This tax rate was also used to determine the amount paid in property tax for each state's median home value.
Maddie McGay is the real estate reporter forNorthJersey.comand The Record, covering all things worth celebrating about living in North Jersey. Find her onInstagram @maddiemcgay,onX @maddiemcgayy, and sign up for herNorth Jersey Livingnewsletter.Do you have a tip, trend or terrific house she should know about? Email her at[email protected].
