Prime Posts – Property Taxes by State: 2023

With the top of 2024 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted probably the most readers over the past yr. In October, Jesse Wade shared the typical actual property tax by state and in addition an efficient charge controlling for residence worth.

Nationally, throughout the 86 million owner-occupied properties within the U.S., the typical annual actual property taxes paid in 2023 was $4,112, in line with NAHB evaluation of the 2023 American Group Survey. Householders in New Jersey continued to pay the best actual property taxes, paying a mean of $9,572, 30.6% larger than the second highest, New York, at $7,329 . On the opposite finish of the distribution, owners in Alabama paid the bottom common quantity of actual property taxes at $978. The map beneath reveals the geographic variation of common annual actual property taxes (RETs) paid.

In comparison with 2022, each state noticed will increase within the common quantity of actual property taxes paid. The most important share improve was in Hawaii, up 21.1% from $2,541 to $3,078.  The smallest improve was in New Hampshire, up 1.1% from $6,385 to $6,453.

Common Efficient Property Tax Charges

Whereas common annual actual property taxes paid is necessary, it gives an incomplete image. Property values range throughout states, which explains some, if not most, of the variation throughout the nation in common annual actual property taxes. To manage for property values and create a extra informative state-by-state evaluation, NAHB calculates the typical efficient property tax charge 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 $352.3 billion with an mixture worth of owner-occupied actual property totaling $38.8 trillion in 2023. Utilizing these two quantities, the typical efficient property tax charge nationally was $9.09 ($352.3 billion/$38.8 trillion) per $1,000 in residence worth. This efficient charge may be expressed as a share of residence worth or as a greenback quantity taxed per $1,000 of a house’s worth. The map beneath shows the efficient charge by state beneath.  

Illinois, a change from New Jersey in 2022 , had the best efficient property tax charge at $18.25 per $1,000 of residence worth. Per 2022, Hawaii had the bottom efficient property tax charge at $3.18 per $1,000 of residence worth. Moreover, Hawaii had the most important improve over the yr, up 18.8% from $2.68 in 2022. Twenty states noticed their efficient property tax charges fall between 2022 and 2023, with the most important lower occurring in West Virginia the place it fell 6.0%, from $5.06 to $4.75 per $1,000.

Intrastate Variation: Examples from New York

Whereas property taxes clearly range by state, there additionally exists variation inside states themselves. The most recent county degree knowledge accessible comes from 2022 5-year ACS estimates. Analyzing these knowledge , New York confirmed the best diploma of variation of common property taxes paid and efficient actual property tax charges throughout the counties of any state. House homeowners in Westchester County on common paid $14,156 in actual property taxes in 2022, the best of any county in New York. The bottom quantity was in Hamilton County, the place residence homeowners paid on common $2,827 in actual property taxes.

For efficient property tax charges, New York continues to inform the story of intrastate variation. As proven above, Westchester County paid the upper common annual actual property taxes in 2022, however taking a look at efficient property tax charge, which accounts for residence worth, Westchester’s efficient property tax charge is close to the center at $18.34.  House homeowners in Monroe County appear to get the brief finish of the stick, paying at a charge of $26.27 per $1,000 of residence worth, the best in New York. The bottom efficient property tax charge was in Kings County, paying a mere $5.30 per $1,000 of residence worth in taxes.