Property taxes represent fees imposed by governmental bodies and settled by property owners, predominantly serving as the main revenue stream for local administrations in the United States. In 2022, the property tax revenue in New York state alone amounted to $67.8 billion. These taxes encompass all stationary assets held by property owners.
NEW JERSEY
Renowned as the “Garden State,” New Jersey boasts the highest property tax rates nationwide, with an effective rate of 2.23% and an average annual property tax bill totaling $8,597.69. Although the state lacks an estate tax, it imposes an inheritance tax ranging from 11% to 16%.
TEXAS
As the second-most populous state, Texas sees its citizens grappling with an effective property tax rate of 1.68%, accompanied by an average annual property tax of $4,776.81. Texas distinguishes itself by eschewing both estate and inheritance taxes.
ILLINOIS
Dubbed “the Prairie State,” Illinois bears an effective property tax rate of 2.08% and an average annual property tax amounting to $9,006.07. While the state forgoes an inheritance tax, it levies an estate tax ranging from 0.8% to 16%.
NEW HAMPSHIRE
Known as the “Granite State” and “Switzerland of America,” New Hampshire features an effective property tax rate of 1.93%, with an average annual property tax of $8,389.53. The absence of estate or inheritance taxes sets it apart.
VERMONT
Vermont, famed as the “Green Mountain State,” maintains an effective property tax rate of 1.83%, with an average annual property tax bill totaling $9,119.74. While it lacks an inheritance tax, Vermont imposes a 16% estate tax, with exemptions up to $5 million.
CONNECTICUT
Celebrated for its prowess in shipbuilding and aerospace, Connecticut grapples with an effective property tax rate of 1.79% and an average annual property tax of $6,213.98. Despite the absence of an inheritance tax, Connecticut imposes an estate tax, with estates exceeding $12.92 million taxed at 12%.
NEBRASKA
Nebraska, recognized for innovations like Kool-Aid and the Reuben sandwich, features an effective property tax rate of 1.63% and an average annual property tax amounting to $5,982.37. While it lacks an estate tax, Nebraska applies an inheritance tax, with direct heirs facing a 1% tax on inheritances surpassing $100,000.
WISCONSIN
Distinguished as “America’s Dairyland,” Wisconsin maintains an effective property tax rate of 1.61% and an average annual property tax bill of $2,497.18. The absence of both estate and inheritance taxes underscores its appeal.
OHIO
Heralded as the “Birthplace of Aviation” and the “Mother of Presidents,” Ohio grapples with an effective property tax rate of 1.59% and an average annual property tax totaling $3,868.19. Ohio sets itself apart by forgoing estate and inheritance taxes.
IOWA
Iowa, also known as the “Hawkeye State,” features an effective property tax rate of 1.52%, with an average annual property tax amounting to $3,180.79. The state imposes inheritance tax rates ranging from 2% to 6%, with an estate tax exemption for estates valued below $25,000.
PENNSYLVANIA
Pennsylvania, the birthplace of American independence, bears an effective property tax rate of 1.49% and an average annual property tax bill totaling $7,087.11. Although it lacks an estate tax, Pennsylvania imposes an inheritance tax ranging from 0% to 15%.
NEW YORK
Comprising the bustling New York City and ranked fourth in population, New York contends with an effective property tax rate of 1.40% and an average annual property tax of $3,407.29. While it lacks an inheritance tax, New York enforces an estate and gift tax, ranging from 3.06% to 16%.
RHODE ISLAND
Rhode Island, the smallest state in the US and dubbed “The Ocean State,” maintains an effective property tax rate of 1.40%, with an average annual property tax bill of $3,432.79. It enforces an estate tax, ranging from 0.8% to 16%, applicable to estates exceeding $1,733,264.
MICHIGAN
Known as the “Great Lakes State,” Michigan sustains an effective property tax rate of 1.38% and an average annual property tax of $7,369.50. Michigan distinguishes itself by eschewing both estate and inheritance taxes.
KANSAS
Nicknamed “the Sunflower State,” Kansas grapples with an effective property tax rate of 1.34% and an average annual property tax totaling $2,610.67. The absence of estate and inheritance taxes underscores its appeal.
MAINE
Maine, famed as the “Pine Tree State” and boasting over four thousand beaches, maintains an effective property tax rate of 1.24%, with an average annual property tax of $2,586.29. Although it lacks an inheritance tax, Maine imposes an estate tax ranging from 8% to 12%.
MASSACHUSETTS
Massachusetts, known as “The Bay State,” features an effective property tax rate of 1.14% and an average annual property tax bill totaling $4,534.54. It lacks both inheritance and gift taxes but imposes an estate tax ranging from 0.8% to 16%.
SOUTH DAKOTA
South Dakota, renowned for Mount Rushmore National Memorial, sustains an effective property tax rate of 1.17% and an average annual property tax of $2,974.75. The absence of estate and inheritance taxes adds to its appeal.
