Understanding your property tax can be somewhat daunting, especially in certain areas of the United States. The amount that you'll have to pay (for merely owning property, mind you) is going to vary from location to location, and in some cases, the price could seem quite immense.
What is a Property Tax?
Local governments make use of taxes to ensure that their municipalities will always have a reliable source of revenue. This tax is asserted at the fair market value of your property and is a legally binding process that all property owners have to go through (well, most of them, anyways). There isn't a solid rate, so you'll have to do a bit of research on your end to find the proper percentage for where you live; here we’ll discuss some of the highest rates around, though.
They Pay How Much?
The latest research suggests that 60% of the United States’ property taxes range from $500 to $1,500 on an annual basis. Now, if you live in any of the areas we're about to list, you may want to seriously consider making a move, because it gets a lot worse!
- Westchester County (New York) – People who own property here will find themselves paying around $9,647 on an annual basis. That is essentially ten times more than the average property tax rate!
- Nassau County (New York) – It seems as if New York really does have the highest property taxes around; in Nassau County expect to pay a whopping $9,080.
- Bergen County (New Jersey) – At a charge of $8,893 per year, New Jersey is doing a great job of mimicking their neighbors – property taxes have never looked this scary!
The Lowest Rates
On the contrary, Alabama and Louisiana straggle in near last place with rates that could be lower than $250 in some cases, so if you want somewhere cheap to invest in some property– you might want to consider the South.
Oh, and what about Delaware? Our state has one of the lowest median rates (only twelve states do better), at $1,078. So, the first state is a great place to own property too.
Getting Help
Need help understanding your property tax, or with other more complicated tax issues? Click the graphic below to learn how Lank, Johnson & Tull, CPAs can help you today.
