Nationally, throughout the 87 million owner-occupied properties within the U.S., the typical quantity of annual actual property taxes paid in 2024 was $4,271, based on NAHB evaluation of the 2024 American Neighborhood Survey. Owners in New Jersey continued to pay the best actual property taxes, paying a mean of $9,767, $2,194 greater than the subsequent closest state, New York, at $7,573. On the opposite finish of the distribution, owners in West Virginia paid the bottom common quantity of actual property taxes at $1,044. The map beneath exhibits the geographic variation of common annual actual property taxes (RETs) paid.
The 2024 knowledge point out that there isn’t a state the place actual property taxes paid have been on common lower than $1,000, the primary time within the ACS knowledge. There continues to be noticeable variations within the common quantity of taxes paid based mostly on geographic location. States within the Northeast, the place dwelling values are usually larger, pay extra on common in actual property taxes in comparison with states in different elements of the nation.
Common Efficient Property Tax Charges
Whereas common annual actual property taxes paid is necessary, it gives an incomplete image. Property values fluctuate throughout states, which explains some, if not most, of the variation throughout the nation in common annual actual property taxes. To regulate for property values and create a extra informative state-by-state evaluation, NAHB calculates the typical efficient property tax charges by dividing mixture actual property taxes paid by mixture worth of owner-occupied housing inside every state. For instance, the mixture actual property taxes paid throughout the U.S. was $370.0 billion with an mixture worth of owner-occupied actual property totaling $41.7 trillion in 2024. Utilizing these two quantities, the typical efficient property tax fee nationally was $8.88 ($370.0 billion/$41.7 trillion) per $1,000 in dwelling worth. This efficient fee could be expressed as a share of dwelling worth or as a greenback quantity taxed per $1,000 of a house’s worth. The map beneath shows the efficient fee by state.
Illinois, for the second consecutive yr, had the best efficient property tax fee at $17.93 per $1,000 of dwelling worth. Hawaii continued to have the bottom efficient property tax fee at $3.08 per $1,000 of dwelling worth. Hawaii additionally had the best common dwelling worth, at $1.05 million in 2024. Notably, the typical efficient property tax fee tends to be larger within the Northeast, along with the presence of upper dwelling values.