rate, while 32 states and the District of Columbia have lower rates. Eighteen states have effective rates that are the same or higher than the U.S. On a median home of $178,600, that’s an annual tax bill of $2,149. Overall, the effective property tax rate for homeowners is 1.2% in the U.S. “If you put those together, Birmingham's tax burden is actually higher than Bridgeport’s,” she said. Birmingham, Alabama, by contrast, has the 11th lowest property tax, but “a host other taxes,” she said. For instance, Bridgeport, Connecticut, has the highest property tax rate but no local sales or income taxes. Property taxes aren’t the only tax burdens, either, that residents should consider, Youngman says. But in California, the tax rate is much lower at 0.81% – the 34th lowest in the U.S. – but the median home there (valued at $385,500) raises $3,104 in property taxes. A median house in Ohio – valued at $129,900 – brings in $2,032 in property taxes. In Ohio, the tax property rate is the 12th highest in the country at 1.56%. Shuttered stores: Fred's closing 104 more stores in summer, see the list Those areas with higher housing values can charge a lower tax rate, but still raise a lot in revenue. Home values are another reason why one city has a higher property tax than another. How much owners of commercial, industrial and utility properties pay in taxes can affect your rate. In Concord, the homeowners bore a bigger share of the tax burden. Why was that? Because Bow’s biggest property taxpayer was a power plant, rather than its few residents. Golden years? Many people retire earlier than planned, here's why
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House hunting: Homes for sale: Here are the most affordable ZIP codes in the US Concord’s property tax rate was about twice as much as Bow’s, even though both shared the same high school. In an extreme historical example, two nearly identical houses in the same subdivision that spanned the town line between Concord and Bow, New Hampshire, had vastly different property tax burdens, according to Joan Youngman, chair of the department of valuation and taxation at the Lincoln Institute of Land Policy, a think tank on the taxation and use of land. That means a house down the street from yours could have a higher or lower tax burden than yours. Some states levy a property tax, but for the most part, these taxes are imposed on the county, city or district levels. Rare Range Rover: You'll never be able to drive this rare 2019 Range Rover Sport - but I did Truck Wars: GM engineers hid secret tailgate in storage room for 2 years “Property tax is a critical piece of information in the home purchase decision and something a buyer should ask about before making the purchase,” Yun says. A portion of your monthly mortgage payment goes to property taxes, so if you’re on a tight budget, a higher property tax bill could be onerous.įor instance, in Buffalo and Syracuse in New York, the property tax portion of the monthly bill can often be higher than the mortgage part because tax rates are so high there, says Lawrence Yun, the chief economist for the National Association of Realtors.
Property taxes largely fund public schools but also other local services like roads and police. And if you’re a homebuyer this spring, it’s another important factor to consider while you house hunt. How much you pay in property taxes often comes down to which side of a county, city or district line you’re on.