Property tax in the United States

Counties, cities and individual state governments in the United States levy property taxes on home and business owners. This means that people living in different areas will face a different property tax burden.
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Property taxes are charged as a percentage of someone’s home value. This means that benchmarks are generally difficult to make. The easiest way to compare property taxes is by looking at the median property tax figure as a percentage of home value in different areas.

Analysts who use this system draw up a table of a single value for each state in the union. Commercial properties are taxed at a different rate, but commercial property taxes follow the same set of rules as residential ones in a majority of places.

Median Property Tax Values
Property taxCalculations used to determine the actual property tax people owe can vary widely between each county. A county tax assessor calculates the approximate market value of each home or business, and then uses a table to determine the total tax owed. Tax specialists use aggregate data from all 50 states to compare these values. Washington DC charges a similar tax as well.Relative yearly property tax burdens in the United States are as follows:

  • 1) New Jersey: 1.89 percent
  • 2) New Hampshire: 1.86 percent
  • 3) Texas: 1.81 percent
  • 4) Nebraska: 1.76 percent
  • 5) Wisconsin: 1.76 percent
  • 6) Illinois: 1.73 percent
  • 7) Connecticut: 1.63 percent
  • 8) Michigan: 1.62 percent
  • 9) Vermont: 1.59 percent
  • 10) North Dakota: 1.42 percent
  • 11) Ohio: 1.36 percent
  • 12) Rhode Island: 1.35 percent
  • 13) Pennsylvania: 1.35 percent
  • 14) Iowa: 1.29 percent
  • 15) Kansas: 1.29 percent
  • 16) South Dakota: 1.28 percent
  • 17) New York: 1.23 percent
  • 18) Maine: 1.09 percent
  • 19) Minnesota: 1.05 percent
  • 20) Massachusetts: 1.04 percent
  • 21) Alaska: 1.04 percent
  • 22) Florida: 0.97 percent
  • 23) Washington: 0.92 percent
  • 24) Missouri: 0.91 percent
  • 25) Maryland: 0.87 percent
  • 26) Oregon: 0.87 percent
  • 27) Indiana: 0.85 percent
  • 28) Nevada: 0.84 percent
  • 29) Georgia: 0.83 percent
  • 30) Montana: 0.83 percent
  • 31) North Carolina: 0.78 percent
  • 32) California: 0.74 percent
  • 33) Oklahoma: 0.74 percent
  • 34) Virginia: 0.74 percent
  • 35) Arizona: 0.72 percent
  • 36) Kentucky: 0.72 percent
  • 37) Idaho: 0.69 percent
  • 38) Tennessee: 0.68 percent
  • 39) Colorado: 0.6 percent
  • 40) Utah: 0.6 percent
  • 41) Wyoming: 0.58 percent
  • 42) New Mexico: 0.55 percent
  • 43) Mississippi: 0.52 percent
  • 44) Arkansas: 0.52 percent
  • 45) South Carolina: 0.5 percent
  • 46) West Virginia: 0.49 percent
  • 47) Delaware: 0.43 percent
  • 48) Alabama: 0.33 percent
  • 49) Hawaii: 0.26 percent
  • 50) Louisiana: 0.18 percent

Individuals who own homes in the Washington DC area will be responsible for a burden that’s somewhere around 0.46 percent.

Federal Property Tax Deductions
The IRS actually allows homeowners to potentially deduct some of the property taxes that they pay to local governments from their income taxes. While the rules are complicated, they can help to reduce a high tax bill. Taxpayers aren’t allowed to deduct the full amount from their taxes, but they’re given enough of an allowance to make it worth their while. Filers are stressed to review IRS Publication for more information.

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