Where Real Estate Taxes Are Highest – 2023 Study - SmartReads by SmartAsset (2024)

FAQs

Which state has the highest property taxes 2023? ›

New Jersey had the largest median property tax bill for singe-family homes in 2023. Connecticut, New York, New Hampshire and Massachusetts rounded out the top five states with the most expensive median property tax bill.

For 2023, states with high income tax rates include California at 13.3%, Hawaii at 11%, and New York at 10.9%, with several others not far behind.

Key Findings. Real estate taxes are over $10,000 annually in San Francisco, Santa Clara and Sunnyvale, CA. This is the highest average annual payment of real estate taxes studywide. Meanwhile, average home values range from $1.36 million to $1.58 million in these cities.

Washington has the highest estate tax at 20%, which is applied to the portion of an estate's value greater than $11,193,000. Inheritance tax rates depend on the beneficiary's relation to the deceased, and, in each state, certain types of relationships are exempt from inheritance tax.

In most states, estate taxes are progressive: the tax rate increases with the total value of the decedent's assets. Two states, Connecticut and Vermont, have flat estate taxes with a single tax rate. Hawaii and Washington have the highest top rates in the nation at 20 percent.

Sadly for investors, the answer is no, there are no states without property tax. This is because property tax is a useful way for local governments to fund public services such as schools, fire and police departments, infrastructure and libraries.

Texas has some of the highest property tax bills in the country, owing to the state's lack of an income tax and heavy reliance on property taxes to pay for government services like police, firefighters, sidewalks and, most prominently, public schools.

Unsurprisingly, the states with no state income taxes at all ended up scoring pretty highly. Those eight states are Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Who has the highest taxes in the world? ›

The long-troubled West African country, Ivory Coast, has the highest income tax rate in the world. People living there are giving away a whopping 60% of their income to the government.

Though Texas has no state-level personal income tax, it does levy relatively high consumption and property taxes on residents to make up the difference. Ultimately, it has a higher effective state and local tax rate for a median U.S. household at 12.73% than California's 8.97%, according to a new report from WalletHub.

Answer: El Paso. By far. Newly published documents reveal that Sun City imposes a much higher property tax rate than its peers. For fiscal year 2021, the El Paso City Council set its total tax rate at 90.7301 cents per $100 of taxable value.

The five states with the lowest average combined rates are Alaska (1.81 percent), Hawaii (4.44 percent), Wisconsin (5.43 percent), Wyoming (5.44 percent), and Maine (5.50 percent).