Everything's Bigger in Texas
Everything is bigger in Texas — including taxes. While every homeowner across the country is subject to real estate taxes, it seems Texans owe a lot more than most Americans, according to a new study from WalletHub.
The study, which used Census data to analyze the 50 states and the District of Columbia in terms of real estate property taxes and vehicle property taxes, says Texas has the fifth highest average real estate tax in the country.
By dividing the median real estate tax payment by the median home price in each state, WalletHub found that Texans pay an average of $3,327 per year in property taxes, which is $1,238 higher than the national average of $2,089. The only states where people pay more real estate taxes are Wisconsin ($3,398), New Hampshire ($3,649), Illinois ($3,939) and New Jersey ($3,971).
Fortunately, Texas doesn’t have a vehicle property tax. In the 27 states with a vehicle property tax, residents shell out another $423 per year on average. New Hampshire might be the worst place in the country for owning property: Residents of New Hampshire that own a house and a vehicle pay an average of $4,062 in property taxes a year.
As the study points out, property taxes matter to renters, too. "While property taxes may appear to be a non-issue for the 36 percent of people who rent their homes that couldn’t be farther from the truth," says WalletHub. "We all pay for property taxes, whether directly or indirectly, as they impact the rent we pay as well as the finances of state and local governments."
If you’re looking to save some money on property taxes, you could think about moving to Hawaii. The state ranked No. 1 for lowest average real estate property tax ($482), and there’s no vehicle property tax.