Here’s one survey for ya, if you believe such things and methodology, but something for state and municipal officials to ponder when the General Assembly convenes on Wednesday for its annual legislative session.
Connecticut, behind New Jersey, pays the most in lifetime property taxes among average homeowners. The northeast United States leads the pack, also among the wealthiest states in the country.
Check it out from Portland Real Estate:
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New Jersey residents pay the most property taxes, with an estimated $375,683 paid by the average homeowner over their lifetime.
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Connecticut and New York rank second and third, paying an average of $261,908 and $259,325 in lifetime property taxes, respectively.
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Alabama homeowners pay the lowest lifetime property taxes, averaging $26,724.
New data has revealed that New Jersey residents pay the highest lifetime property taxes in America.
The study, conducted by real estate company Portland Real Estate, analyzed median annual property taxes, the average age of first-time buyers, and the estimated life expectancy of residents to determine which states have the highest and lowest lifetime property tax costs.
According to the data, New Jersey spends the most on lifetime property taxes. With an average annual property tax of $9,163 and a life expectancy of 79, the typical homeowner will pay $375,683 over their lifetime. This is 220% higher than the national average of $117,346. With the median first-time homebuyer age in the U.S. at 38, the typical New Jersey homeowner pays this amount over 41 years.
Connecticut homeowners rank second, paying an average of $261,908 in lifetime property taxes. The state also has a life expectancy of 79 years old. However, the average annual property tax amount is $6,388, paid over 41 years.
New York is in third place, with an average lifetime property tax amount of $259,325. The median house price in the state is $519,500. With an annual property tax rate of 1.22%, New York homeowners can expect to pay an average of $6,325 annually across 41 years.
New Hampshire ranks fourth, with an average lifetime property tax of $251,400. Homeowners in the state pay $6,285 annually on average across 40 years.
Massachusetts follows closely in fifth place. Homeowners in the state will pay an average of $5,821 annually across 41 years, bringing their lifetime property taxes to $238,661.
California ranks sixth. Homeowners in the state will pay an average of $204,560 in lifetime property taxes across 40 years.
Illinois ranks seventh, the state’s life expectancy of 77 means that the average homeowner can expect to pay $198,471 in lifetime property taxes across 39 years.
Vermont ranks eighth for the highest property taxes. Homeowners pay an average of $4,851 annually, totaling $194,040 in lifetime property taxes.
In ninth place is Rhode Island. Homeowners in the state will pay an average of $185,760 in property taxes across 40 years.
Washington rounds out the top 10. The average lifetime property tax amount in the state is $179,120.
Alabama was found to have the lowest lifetime property taxes, with $786 annually expected to be paid across 34 years, bringing the average lifetime property taxes in the state to $26,724. This is 77% lower than the national average amount of $117,346.
The 10 states that pay the highest lifetime property taxes
|
Rank |
State |
Lifetime property tax |
|
1. |
New Jersey |
$375,683 |
|
2. |
Connecticut |
$261,908 |
|
3. |
New York |
$259,325 |
|
4. |
New Hampshire |
$251,400 |
|
5. |
Massachusetts |
$238,661 |
|
6. |
California |
$204,560 |
|
7. |
Illinois |
$198,471 |
|
8. |
Vermont |
$194,040 |
|
9. |
Rhode Island |
$185,760 |
|
10. |
Washington |
$179,120 |
A spokesperson for Portland Real Estate commented on the findings,
“Understanding the substantial impact of lifetime property taxes is crucial for prospective homeowners. As this study illustrates, states vary dramatically in their tax burdens, with those on the East Coast appearing to bear the heaviest costs – seven of the states with the highest lifetime property taxes are on the East Coast.
“It is essential for buyers to account for these long-term expenses, as they can significantly influence overall financial planning and homeownership affordability.”
Sources:
Methodology:
Data on the average home sale price in each state was obtained from Redfin. This was compared with the average property taxes paid in each state to reveal the property tax rate. The life expectancy in each state was obtained from the CDC, and the average age of a first-time homebuyer, established by the NAR to be 38, was subtracted from each state’s life expectancy to reveal the number of years for which the average homeowner in each state must pay property taxes.
The lifetime property tax rate was calculated by multiplying the median annual property tax amount by the number of years the average homeowner pays property taxes. The most recently available data was used for each factor. Life expectancy is circa 2021, taxes paid are circa 2023, and home prices and first-time buyer age are circa 2024.
Calculations do not consider the estimated change in property value in each location year-on-year. All amounts are also in current dollars and not adjusted for a projected inflationary value.
Life expectancy was rounded down to the nearest whole year. The rationale for this is that property tax is charged annually, and the last time a homeowner would pay their tax would be the last full year of their life. For example, if a homeowner lived to the average life expectancy of 79.9 years in Hawaii, then the last time they paid property tax would have been at age 79 and not at age 80.
If you use these insights, we would appreciate a link to https://www.portlandrealestate.com/ – a linked credit allows us to supply you with more stories in the future.
All 50 states ranked from the highest to lowest lifetime property taxes
|
Rank |
State |
Lifetime property tax payment ($) |
Median annual property tax ($) |
Average life expectancy |
Estimated number of years to pay property taxes |
Annual property tax rate as % of current median sale price |
Median house sale price ($) |
|
1. |
New Jersey |
375,683 |
9,163 |
79 |
41 |
1.70% |
538,800 |
|
2. |
Connecticut |
261,908 |
6,388 |
79 |
41 |
1.39% |
459,800 |
|
3. |
New York |
259,325 |
6,325 |
79 |
41 |
1.22% |
519,500 |
|
4. |
New Hampshire |
251,400 |
6,285 |
78 |
40 |
1.25% |
504,700 |
|
5. |
Massachusetts |
238,661 |
5,821 |
79 |
41 |
0.90% |
645,400 |
|
6. |
California |
204,560 |
5,114 |
78 |
40 |
0.59% |
869,800 |
|
7. |
Illinois |
198,471 |
5,089 |
77 |
39 |
1.76% |
289,500 |
|
8. |
Vermont |
194,040 |
4,851 |
78 |
40 |
1.16% |
418,900 |
|
9. |
Rhode Island |
185,760 |
4,644 |
78 |
40 |
0.90% |
514,400 |
|
10. |
Washington |
179,120 |
4,478 |
78 |
40 |
0.66% |
674,500 |
|
11. |
Texas |
158,138 |
4,274 |
75 |
37 |
1.23% |
347,900 |
|
12. |
Maryland |
153,504 |
3,936 |
77 |
39 |
0.77% |
513,000 |
|
13. |
Oregon |
146,250 |
3,750 |
77 |
39 |
0.72% |
520,300 |
|
14. |
Wisconsin |
139,698 |
3,582 |
77 |
39 |
1.10% |
325,800 |
|
15. |
Nebraska |
137,397 |
3,523 |
77 |
39 |
1.22% |
288,800 |
|
16. |
Alaska |
133,848 |
3,718 |
74 |
36 |
0.94% |
394,100 |
|
17. |
Minnesota |
132,840 |
3,321 |
78 |
40 |
0.91% |
365,100 |
|
18. |
Pennsylvania |
119,738 |
3,151 |
76 |
38 |
0.99% |
319,300 |
|
19. |
Iowa |
110,253 |
2,827 |
77 |
39 |
1.17% |
242,300 |
|
20. |
Maine |
109,668 |
2,886 |
76 |
38 |
0.70% |
414,200 |
|
21. |
Florida |
106,134 |
2,793 |
76 |
38 |
0.65% |
432,500 |
|
22. |
Michigan |
105,265 |
2,845 |
75 |
37 |
1.07% |
265,700 |
|
23. |
Virginia |
104,652 |
2,754 |
76 |
38 |
0.60% |
460,100 |
|
24. |
Kansas |
104,348 |
2,746 |
76 |
38 |
0.95% |
287,900 |
|
25. |
Utah |
103,400 |
2,585 |
78 |
40 |
0.42% |
619,600 |
|
26. |
South Dakota |
103,056 |
2,712 |
76 |
38 |
0.80% |
339,600 |
|
27. |
Colorado |
101,556 |
2,604 |
77 |
39 |
0.39% |
662,600 |
|
28. |
Ohio |
99,144 |
2,754 |
74 |
36 |
1.08% |
255,100 |
|
29. |
Montana |
98,346 |
2,658 |
75 |
37 |
0.49% |
540,700 |
|
30. |
North Dakota |
95,745 |
2,455 |
77 |
39 |
0.83% |
297,400 |
|
31. |
Hawaii |
93,603 |
2,283 |
79 |
41 |
0.24% |
946,100 |
|
32. |
Georgia |
85,788 |
2,383 |
74 |
36 |
0.62% |
386,500 |
|
33. |
Idaho |
81,939 |
2,101 |
77 |
39 |
0.43% |
491,800 |
|
34. |
Nevada |
75,369 |
2,037 |
75 |
37 |
0.41% |
499,400 |
|
35. |
Missouri |
68,652 |
1,907 |
74 |
36 |
0.70% |
273,600 |
|
36. |
North Carolina |
67,680 |
1,880 |
74 |
36 |
0.48% |
389,800 |
|
37. |
Arizona |
67,007 |
1,811 |
75 |
37 |
0.39% |
461,200 |
|
38. |
Wyoming |
66,341 |
1,793 |
75 |
37 |
0.38% |
471,000 |
|
39. |
Delaware |
65,170 |
1,715 |
76 |
38 |
0.43% |
400,000 |
|
40. |
New Mexico |
59,815 |
1,709 |
73 |
35 |
0.43% |
394,600 |
|
41. |
Indiana |
59,292 |
1,647 |
74 |
36 |
0.63% |
261,000 |
|
42. |
Oklahoma |
54,162 |
1,593 |
72 |
34 |
0.65% |
246,500 |
|
43. |
Kentucky |
51,816 |
1,524 |
72 |
34 |
0.56% |
270,800 |
|
44. |
Tennessee |
48,280 |
1,420 |
72 |
34 |
0.36% |
396,600 |
|
45. |
South Carolina |
43,260 |
1,236 |
73 |
35 |
0.31% |
402,500 |
|
46. |
Louisiana |
39,712 |
1,168 |
72 |
34 |
0.47% |
248,200 |
|
47. |
Mississippi |
37,664 |
1,177 |
70 |
32 |
0.46% |
257,000 |
|
48. |
Arkansas |
35,292 |
1,038 |
72 |
34 |
0.40% |
259,700 |
|
49. |
West Virginia |
27,819 |
843 |
71 |
33 |
0.32% |
261,100 |
|
50. |
Alabama |
26,724 |
786 |
72 |
34 |
0.29% |
275,500 |
