Additional Coverage:
- 10 States Where Property Taxes Hit Homeowners the Hardest (financebuzz.com)
High Property Taxes? Think Twice Before Moving to These States
Soaring home prices are hitting everyone hard, but if you’re looking to get ahead financially, you might want to steer clear of states with high property taxes. Sure, those taxes often fund great schools, roads, and emergency services, but they can also eat into your savings and impact your retirement plans.
Before you start house hunting, take a look at this list of states with the highest property taxes:
- New Jersey (2.21%): New Jersey has some of the highest property values in the US, resulting in hefty tax bills. Cities like Elizabeth and Paterson, near New York City, are particularly expensive.
- Illinois (2.05%): Several smaller metro areas in Illinois, including Rockford, Peoria, and Joliet, are known for their high property taxes.
- Connecticut (1.98%): Connecticut has a high cost of living across the board, from housing and utilities to everyday goods. While many residents earn higher-than-average incomes, the high property taxes are still a significant expense.
- New Hampshire (1.96%): With no income or sales tax, New Hampshire relies heavily on property taxes to fund state services, contributing to its high rate.
- Vermont (1.90%): Property taxes are expected to rise by 5.9% in 2025, following a 13.8% jump the previous year.
- New York (1.89%): New York City’s complex property tax system is a frequent source of frustration for residents. High property taxes are also a concern in other parts of the state.
- Texas (1.80%): Texas has no state income tax, which means property taxes play a larger role in funding community services. Cities like El Paso, Fort Worth, San Antonio, and Arlington are known for their high rates.
- Wisconsin (1.85%): Wisconsin relies heavily on property taxes to fund services. Milwaukee’s effective property tax rate is a substantial 2.53%.
- Nebraska (1.78%): Omaha’s property tax rates are higher than many other large US cities. High taxes on agricultural land are also a major concern for farmers in the state.
- Ohio (1.76%): Rising home values in Ohio have led to increased property taxes for many homeowners.
The Bottom Line
While there are advantages to living in these states, high property taxes can significantly impact your finances. If you’re looking to save money and build a strong financial future, it’s worth considering the long-term costs before making a move.
Smart Money Moves for Everyone
Regardless of your financial situation, there are always ways to improve. Here are a few tips:
- Tackle Debt: Debt can hinder your financial progress. Explore options like balance transfer credit cards and debt counseling to accelerate your debt payoff.
- Boost Your Income: Earning extra income can provide financial breathing room. Consider a part-time job or side hustle to supplement your earnings.
- Cut Expenses: Review your biggest expenses to identify potential savings. Shop around for better rates on auto insurance and explore travel credit cards to offset vacation costs.
Read More About This Story:
- 10 States Where Property Taxes Hit Homeowners the Hardest (financebuzz.com)