NEW JERSEY -- The average American household spends $2,279 on property taxes for their homes each year, according to the U.S. Census Bureau. In light of this, it’s little surprise that more than $14 billion in property taxes go unpaid each year, according to the National Tax Lien Association.

To determine who pays the highest taxes, personal-finance website WalletHub today released its 2019 Property Taxes by State report to compare home and vehicle taxes across the nation. (New Jersey does not have a vehicle tax, while residents of the 27 states with vehicle property taxes shell out another $440.)

Depending on where you live, property taxes can be a small inconvenience or a major burden. The WalletHub study analyzed the 50 states and the District of Columbia in terms of real-estate and vehicle property taxes. Not surprisingly, New Jersey ranks dead last with a 2.44% effective real estate tax rate and annual taxes of $7,840 on a state median home price of $321,100.

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“Households do pay attention to property taxes in deciding where to move, as well they should,” said John F. McDonald, Ph.D., Emeritus Professor of Economics, University of Illinois at Chicago and Adjunct Professor of Economics at Temple University. “They also consider the quality of the public services, especially schools. People will pay more property taxes for better schools.”

Property Taxes in New Jersey (1st=Lowest; 25th=Avg.):

  • Real-Estate Property Tax Rank: 51st
  • Vehicle Property Tax Rank: 1st
  • Real-Estate Tax on Median New Jersey Home Value: $7,840
  • Real-Estate Tax on Median U.S. Home Value: $4,725
  • Vehicle Property Tax on Best-Selling Car: $0.00

Hawaii had the lowest property tax rate, followed by Alabama, Louisiana, Colorado and the District of Columbia. Nearby Pennsylvania ranked 40th (where 1 is the lowest and 51 is the highest), while New York was 43rd. To view the entire WalletHub report, click here.

The WalletHub results are an explanation why a recent United Van Lines study found that New Jersey leads the nation in people moving out of state.

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