For the average person deciding where to buy or rent a home, the process is far less romantic than throwing a dart at a map. A slew of factors make certain locales more or less attractive places to live -- weather, culture and quality of schools to name a few -- plus all those elements that demand you loosen your purse strings. One often-overlooked piece of the moving puzzle is property taxes, a financial obligation that varies significantly across state lines. A recent analysis by WalletHub determined that the average American pays $2,127 in property taxes per year, a cost that's either bundled directly into a mortgage payment or indirectly tacked on to the cost of rent. That's a big budget chunk, which might explain in part why $11.8 billion in property taxes go unpaid each year, according to the National Tax Lien Association. Using U.S. Census Bureau data, WalletHub identified a real estate tax rate (expressed as a percentage) as well as an annual property tax doll...
- Property taxes vary across state lines and may affect whether homeowners can afford to buy or even rent in a given area.
- A recent analysis by WalletHub determined that the average American pays $2,127 in property taxes per year.
- In 2016, the states with the highest property taxes are New Jersey, Illinois and New Hampshire. In comparison, Hawaii, Alabama and Louisiana have the lowest real estate tax rates.