property tax report
Texans are paying the 7th highest property taxes in the U.S., per report
At least we don't have New Jersey's tax rate.
Tax season is here, and Texas homeowners are likely reeling at the thought of a multi-thousand dollar property tax bill. However, Texans can find some consolation in the fact that their property taxes are lower than those in six other U.S. states, according to WalletHub's 2024 property tax report.
The median value of a house in the Lone Star State is $238,000, the report found, which is a $35,400 increase from the state's median home value in 2023. Once a homeowner factors in Texas' effective real estate tax rate of 1.63 percent (compared to 1.74 percent last year), that means the average Texan is paying $3,872 in property taxes.
"Some states charge no property taxes at all, while others charge an arm and a leg," said WalletHub analyst Cassandra Happe. "Americans who are considering moving and want to maximize the amount of money they take home should take into account property tax rates, in addition to other financial factors like the overall cost of living, when deciding on a city."
Texans can be glad they don't live in New Jersey, which WalletHub maintains has the worst property tax rate in the nation for the second year in a row. New Jersey homeowners are paying over $9,300 annually for their homes, based on a median home value of $401,400 and an effective tax rate of 2.33 percent.
Instead, Texas homeowners can pine after Hawaii's property tax rate, as the Aloha State came out on top with the lowest property tax rate in the country for the second consecutive year. Hawaii homeowners have an effective tax rate of 0.27 percent, which on a high median home value of $764,800, amounts to only $2,054 in property taxes.
The states that pay the lowest real estate property taxes are:
- No. 1: Hawaii – 0.27 percent
- No. 2: Alabama – 0.39 percent
- No. 3: Colorado – 0.49 percent
- No. 4: Nevada – 0.50 percent
- No. 5: South Carolina – 0.53 percent
- No. 6: West Virginia, Louisiana, Delaware, Utah (tied) – 0.55 percent
- No. 10 – Arizona, Idaho, and District of Columbia (tied) – 0.56 percent
While Texas homeowners feel the sting of their property taxes, at least they can find some comfort in not having to worry about vehicle property taxes. Texas vehicle owners only have to pay a 6.25 percent tax rate on the purchase price of a car with their local tax assessor-collector, but they do not have to pay any annual vehicle property taxes.
Plus, it’s not just Texas – WalletHub determined that 23 other states and Washington, D.C., also do not have vehicle property tax rates. Louisiana has the lowest rate out of the remaining states that do pay vehicle property taxes, at 0.10 percent. The state with the highest vehicle property tax rate is Virginia, at 3.97 percent.
