When you’re working with homebuyers, especially those who are first-time buyers or from out of state, one main factor in determining how much you home is within their reach is property taxes.
WalletHub, using data from the U.S. Census Bureau, the average American household spends $2,127. And while renters often think they are in the clear of the impact of property taxes, oftentimes they are indirectly impacted.
Hawaii was ranked as having the lowest property tax rate of 0.28 percent, but the state has a steep median home value of $504,500. At the opposite end of the coin, New Jersey had the highest property tax rate in the nation of 2.29 percent.
Chicago residents are among those who are paying high property taxes. Illinois was ranked no. 50, right behind New Jersey for its property taxes.
Illinois residents pay 2.25 percent on property taxes
- Annually they spend $3,959 on a $176,000 home
- The median home value in the state is $175,000
- The annual taxes on a home priced at the state’s median value is $3,959