Report: Texas property taxes 7th-highest in U.S.

Texas has the seventh-highest real estate property tax rate in the U.S. according to a recent analysis by the consumer financial site, Wallethub.

“Depending on where you live, property taxes can be a small inconvenience or a major burden,” John Kiernan, Managing Editor at Wallethub writes.

According to data from the U.S. Census Bureau, the average household nationwide spends $2,375 on property taxes, and residents of 27 states with vehicle property taxes shell pay an additional $441.

“Considering these figures and the rising amount of debt in America, it should come as no surprise that more than $14 billion in property taxes go unpaid each year,” Kiernan says, according to data from the National Tax Lien Association.

New Jersey has the highest property taxes, followed by Illinois, New Hampshire, Connecticut, Wisconsin, Vermont, Texas, Nebraska, New York and Rhode Island rounding out the top ten highest property taxed states.

Texas is one of 23 states with no vehicle property taxes and one of seven that levies no state income tax.

WalletHub compared U.S. Census Bureau data for all 50 states and the District of Columbia to determine real-estate property tax rates and applying assumptions based on national auto-sales data to determine vehicle property tax rates.

For real-estate property tax rates, it divided the “median real-estate tax payment” by the “median home price” in each state. It then used the resulting rates to obtain the dollar amount paid as real-estate tax on a house worth $204,900, the median value for a home in the U.S. as of 2018.

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