Information about property taxes might not be as famous as other taxes that makes the headline but it still affects everyone. Once disregarded, your finance might suffer due to your negligence.
Forbes reports about the State that has the highest Property taxes in America. The information has been supported by the Tax Foundation, which has compiled the states with highest property tax rates.
However, according to the online magazine, the property taxes that people are paying are relative because the assessment depends on its formula. The state might have a higher tax rate but another variable to consider is the assessed value of the property. For example in Pennsylvania, it is calculated by "assessment multiplied by the millage; assessments, based on common-level ratios, and millage can vary from county to county." In New Jersey, the tax rate may vary in each district as well.
Anyhow, to come up with an accurate information as to which state has the highest property tax rate, the Tax Foundation "calculated the average amount of residential property tax actually paid, expressed as a percentage of home value." By using the formula, it has produced a more even result because "it factors in the cost of living in different geographic areas." their computations are also established on the owner-occupied properties. Rentals and corporate properties are not included in the calculations, it is in an effort to "to compare apples to apples."
As a result the highest effective rate has been identified. The top 5 Estates with highest property tax rate are the following: New Jersey (2.38%), Illinois (2.32%), New Hampshire (2.15%), Connecticut (1.98%), and Wisconsin (1.96%). As for the top 5 Estates with lowest property tax are: Hawaii (.028%), Alabama (0.43%), Louisiana (0.51%), Delaware (0.55%), and District of Columbia (0.57%).
Wallet Hub says that an average American is paying around $2,089 on property taxes annually. Houses are also being foreclosed when homeowners are delinquent in paying their property taxes. Based on the study conducted by National Tax Lien Association in 2012, foreclosed properties have amounted to $15 billion-worth of homes every year.
