What states have the highest property taxes in 2023?
The state with the highest property tax rate is New Jersey. Homeowners in New Jersey may pay more than $8,000 per year in property taxes, depending on the value of their home. Though this may sound steep, the next highest states aren’t far behind, with average effective property tax rates near or above 2%.
1. New Jersey
Average Effective Property Tax Rate: 2.47% Median Home Value: $355,700
Annual Taxes On a Median-Priced Home: $8,797
2. Illinois
Average Effective Property Tax Rate: 2.23% Median Home Value: $212,600
Annual Taxes On a Median-Priced Home: $4,744
3. Connectcut
Average Effective Property Tax Rate: 2.15% Median Home Value: $286,700
Annual Taxes On a Median-Priced Home: $6,153
New Jersey is Among the Top States People are Leaving (Again)
A new study reveals that New Jersey is once again ranked as a top state that Americans are moving out of. According to the annual North American Van Lines 2022 Migration Moving Report, NJ is number 3 on the list of states people are leaving.
Highest Income Tax States in 2023
Having your residence in certain states requires you to pay a higher income tax than what you are liable for in others. Something the two top outbound states have in common is that they have some of the highest tax rates in the country.
Those in California and New Jersey have long dealt with tax rates that are in the highest percentage in the United States. These levels take away from a person’s overall income and leave fewer funds for discretionary spending and investments. Owning property, along with property taxes, is part of this equation as well and another top reason for people moving to lower tax liability states.