By C. M. Schmidlkofer
(The Center Square) – A new study shows New Hampshire ranks third highest in the country for high property taxes.
According to findings released by financial website WalletHub, the state has a 2.18% tax rate with consumers paying $5,701 in real estate taxes on a home with a $261,700 median value.
WalletHub determined which states had the highest and lowest property taxes by comparing all 50 states and the District of Columbia by using U.S. Census data and by applying assumptions based on national auto sales data for vehicle property taxes.
For real estate property taxes, WalletHub divided the “median real estate tax payment” by the “median home price” in each state, using those rates to get the dollar amount paid as real estate tax on a house worth $127,500 which is the median value for a home as of 2019.
Vehicle property tax rates were calculated based on data for cities and counties with at least 50 percent of a given state’s population, carried to the state level using weighted averages based on population size.
According to its website, the study also concluded Hawaii has the lowest real estate tax at $606, which is 8.9 times lower than in New Jersey, the state with the highest at $5,419.
Blue states have 31.12% higher real estate property taxes – averaging $2,722 – than red states, which average $2,076.
WalletHub Analyst Liz Gonzalez said states with very high property taxes usually don’t impose other types of taxes, such as sales taxes or income taxes.
“One such state is New Hampshire, which has the third highest real estate tax rate in the country, 2.18%, and also imposes a 1.8% vehicle tax,” she said. “Maine and New Jersey are also among the states that rely a lot on property taxes. For the communities in these states, property taxes can be a major burden. In Maine for example, residents pay over $3,000 per year on real estate and vehicle taxes, while in New Jersey real estate taxes can amount to as much as $8,000.”
She added that consumers should take real estate property taxes into account when deciding where to move and live.
“While states with lower taxes can be more appealing, people should also consider the level and quality of public services they get back from paying these taxes,” she said.
Gonzalez points out that each year the average American household spends $2,471 on real estate property taxes plus another $442 for residents of the 27 states with vehicle property taxes. With such high costs, it’s no surprise that more than $14 billion in property taxes go unpaid each year, according to the National Tax Lien Association.
“Legislators should broaden the base for property taxes,” where such taxes are high, she said. “This means more types of properties would be subject to taxation, which would lower the overall rate without revenue loss for governments.”
She also suggested authorities evaluate their revenue potential to see if other forms of taxation would help lower their property taxes.
Originally published by The Center Square. Republished with permission.
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