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The rules regarding property taxes differ between states, making an important factor to consider when selecting a place for residency. Depending on where you live, you could be paying as much as 50 percent more or as much as 50 percent less in property taxes than other citizens. Knowing which states have the highest and lowest property taxes can ensure you make the best decision for you and your family.
When it comes to the states that impose the highest property taxes, the most notable is New Jersey. Residents in New Jersey are taxed in a two-tiered system based on the town and county in which properties are located. On the other side of the spectrum, the states with the lowest property taxes include some of the most populous in the country – such as Texas, Delaware and Hawaii.
In Texas, the tax rate on properties is one of the lowest in the nation. Certain exemptions exist on property taxes, with residents over the age of 65 eligible for significant reductions on the market value of their home. Meanwhile, homeowners in Delaware pay the lowest property taxes in the United States, with an average rate of just 0.43%. Hawaii homeowners also benefit from some of the lowest rates, with an average of just 0.26%.
For those states not featured in the highest or lowest spectrum of property taxes, the national average hovers in around 1.19%. Explore your residency options carefully when making the decision on where to move. Each state varies greatly in the taxes they impose on property, and making sure you’re aware of the rates can save you a significant amount of money in the future.