U.S. states with the highest property tax rates

Renters will typically pay higher taxes than homeowners because renters don’t receive a home’s “assessment value” from the government and don’t benefit from the property tax paid by owners.

The compilation of the average effective property tax rate for residential properties in all U.S. states and Washington, D.

To illustrate just how much separation occurs in taxes paid, LendingTree looked at median tax amounts by metropolitan area in each of the 50 largest metropolitan cities in the U.S. LendingTree found that homeowners in some parts of the country can pay thousands of dollars more per year than people who live in other large cities.

Methodology

LendingTree calculated the median real estate taxes in the nation’s 50 largest metropolitan statistical areas by using data from US Census Bureau’s 2019 American Community Survey. 

To determine the median real estate taxes, we first calculated the median taxable value of a home in each MSA. To do this, we have to look at data from the Census Bureau and determined how many homes in each MSA were valued at $300,000 or less. Then, we calculated the median value by dividing the total number of homes with a taxable value at $300,000 or

The Census’ definition of “real estate tax” is different than the respondent’s definition of “property tax.” The LendingTree survey indicates that terms are often used interchangeably across the real estate profession.

The IRS’ definition of the real estate tax is “the annual charge for the use of government-owned property or buildings.”

The survey found that only one in four respondents were familiar with the specific definition of the real estate tax.

The LendingTree survey found that “property tax” is a term used by more than half of respondents and was noted by 54

Here are the median property taxes in each state.

 Las Vegas

The average home in Las Vegas is worth $696, while homes that have a mortgage are worth $928, about 28% more. Meanwhile, homes without a mortgage are only worth an average of $572

Birmingham, Alabama

Birmingham, Alabama, has a median mortgage real estate tax of $958 and its median non-mortgage is $727

New Orleans

New Orleans, median real estate tax paid on all homes – $1,313 | Median real estate tax paid – homes with a mortgage – $1,473 | Median real estate tax liability – homes without a mortgage – $1,053.

Indianapolis

Indianapolis – Median real estate paid taxes on all homes: $1,511; median real estate paid taxes on homes with mortgages: $1,596; median real estate taxes on homes without a mortgage: $1,331.

Louisville, Kentucky

The median amount of property taxes paid is $1,520 for homes with mortgages and $1,609 including homes without a mortgage

Phoenix

In the median property tax county, property owners paid an average of $1,546 in real estate tax for all homes and an average of $1,605 with a mortgage. In contrast, homeowners who did not own their homes paid only $1,412.

Nashville

  • /rewrite [National average of median real estate tax paid – all homes $1,581 
  • National average of median real estate tax paid- homes with a mortgage $1,515 
  • National average of median real estate tax paid – homes without a mortgage $1 ,501 ~~~

Memphis, Mississippi

  • Median real estate tax paid – all homes $1,623 
  • Median real estate tax paid – homes with a mortgage $1,746 
  • Median real estate tax – homes without a mortgage $1,384

Oklahoma City, Oklahoma

OKC median annual real estate tax paid – all homes $1,645

  • OKC median annual real estate tax paid – homes with mortgage $1,806
  • OKC median annual real estate tax paid – mortgages absent homes $1,338.

Charlotte, North Carolina

  • Median real estate taxes paid for all homes (zip code) – $1,722 
  • Median real estate taxes paid for homes with a mortgage – $1,847
  • Median real estate taxes paid without a mortgage – $1,383
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