ATTOM Data Solutions released a 2016 property tax analysis for more than 84 million U.S. single family homes, which shows that property taxes levied on single family homes in 2016 totaled $277.7 billion, an average of $3,296 per home and an effective tax rate of 1.15 percent.
The report analyzed property tax data collected from county tax assessor offices nationwide at the state, metro and county level along with estimated market values of single family homes calculated using an automated valuation model (AVM). The effective tax rate was the average annual property tax expressed as a percentage of the average estimated market value of homes in each geographic area.
New Jersey, Illinois, Texas post highest property tax rates
States with the highest effective property tax rates were New Jersey (2.31 percent), Illinois (2.13 percent); Texas (2.06 percent); New Hampshire (2.03 percent); and Vermont (2.02 percent).
Other states in the top 10 for highest effective property tax rates were Connecticut (2.00 percent), Pennsylvania (1.89 percent), New York (1.88 percent), Ohio (1.68 percent), and Rhode Island (1.64 percent).
Among 217 metropolitan statistical areas with a population of at least 200,000, those with the highest effective property tax rates were Binghamton, New York (3.10 percent); Rochester, New York (2.99 percent); Rockford, Illinois (2.96 percent); Atlantic City, New Jersey (2.77 percent); and Syracuse, New York (2.67 percent).
Hawaii, Alabama, Colorado post lowest property tax rates
States with the lowest effective property tax rates were Hawaii (0.32 percent); Alabama (0.48 percent); Colorado (0.52 percent); Tennessee (0.54 percent); and Delaware (0.56 percent).
Other states in the top 10 for lowest effective property tax rates were West Virginia (0.57 percent); South Carolina (0.63 percent); Nevada (0.64 percent); Utah (0.65 percent); and Arkansas (0.67 percent).
Among the 217 metro areas analyzed for the report, those with the lowest effective property tax rates were Honolulu (0.32 percent); Montgomery, Alabama (0.35 percent); Tuscaloosa, Alabama (0.36 percent); Florence, South Carolina (0.44 percent); and Colorado Springs, Colorado (0.44 percent).
9 counties with average annual property taxes of more than $10,000
Among 586 counties with a population of at least 100,000 and at least 10,000 single family homes, nine posted average annual property taxes of more than $10,000: Westchester, Rockland, and Nassau counties in New York; Essex, Bergen, Union and Morris counties in New Jersey; Marin County, California; and Fairfield County, Connecticut.
There were a total of 32 counties with average annual property taxes of $7,000 or more, including counties in Illinois, Texas, Virginia and Massachusetts.
Owner-occupied properties register higher effective tax rate than investment properties
The average annual property tax for owner-occupied single family homes nationwide was $3,658, an effective tax rate of 1.21 percent. That was higher than the average annual property tax of $2,437 and effective tax rate of 1.03 percent on non-owner occupied (investment) homes.
The effective tax rate for investment homes was lower than the effective tax rate for owner-occupied homes in 34 states, including California, Texas, Ohio, Illinois and New York.
States where the effective tax rate for investment homes was higher than the effective tax rate for owner-occupied homes included Florida, Pennsylvania, Michigan, Indiana and Arizona.
Investment property homeowners owed $51.4 billion in property taxes in 2016, accounting for 19 percent of the total property taxes owed nationwide, while the number of investment properties accounted for 26 percent of all single family homes.