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Property taxes are one of the most variable costs in homeownership, and the gap between the cheapest and most expensive states is wide enough to change whether a home is affordable at all. The average U.S. household pays $3,119 per year in property taxes on their home, according to the U.S. Census Bureau, but that figure obscures a range running from just a few hundred dollars in some states to nearly $10,000 in others. In 26 states, residents also pay vehicle property taxes that add an average of $499 to the annual burden. Where a homeowner lands on that spectrum depends almost entirely on the state the home sits in.
The rate a state charges is only part of the equation. Home values amplify or dampen the effect of any given rate, so a low-rate state with expensive real estate can still produce a hefty annual bill. The reverse holds too: a state with a relatively high rate applied to modest home values may leave homeowners paying less than the national average. Understanding that interaction is what separates a useful comparison from a misleading one. Renters are not insulated from the burden, either. Landlords who face high property tax bills tend to pass those costs through to tenants, spreading the obligation across households that do not own property themselves.
