The coronavirus pandemic closed many doors in the past year, from restaurants to gyms to theaters and offices. But it has also opened up some new possibilities thanks to the expansion of video technology and remote working that employers are now using. The demand for new homes is increasing across the country, and many homeworkers who are not bound by their commute may consider moving anywhere that fits their budget.
However, before you get too excited about the house in the country, which costs about the same amount that you get to sell your home, it's a good idea to check property taxes. You can just be off the charts.
Check out WalletHub's latest ranking of median property taxes in all 50 states and the District of Columbia, based on the latest available 2019 U.S. Census figures for median home values and median property taxes paid.
The average American household spends $ 2,471 on property taxes each year. In the places with the highest middle property taxes, the monthly tax payment for a house at the average price is often more than half the mortgage payment. At the top of the list is New Jersey, where the home was valued at an average of $ 335,600. For this home, a 3.25 percent 30 year fixed mortgage with a 20 percent down payment would require a monthly mortgage payment of $ 1,168 plus approximately $ 696 real estate taxes. Once you know the tax rate, an online mortgage calculator like this one can work out our monthly payments at any rate and price.
But property taxes are not that simple. They are often imposed not only by states but also by cities, counties, and local school authorities. In some areas, such as many of the suburbs of New York City, house prices and tax rates are well above the state median. Given the boom in suburban real estate that has developed amid the pandemic, prices today could be higher than those reported in the study. Finally, build in a buffer for increases because, unlike many mortgages, tax payments are not set – your state or county will ultimately reevaluate the value of your property.
This week's graph, based on WalletHub's results, shows the places where property taxes are highest and lowest.
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