Property Tax Rates Highest for Homeowners Who Have Owned Between Five and 15 Years, Own High-End or Low-End Homes

Counties with Highest Tax Rates in New York, San Antonio, Chicago and Milwaukee;
Higher-end homes account for more than half of all property tax dollars nationwide

IRVINE, Calif. – March 3, 2015 — RealtyTrac® (www.realtytrac.com), the nation’s leading source for comprehensive housing data, today released a its first-ever U.S. Property Tax Rates Report for 2014, which provides average property taxes and effective property tax rates for single family homes in more than 1,000 counties nationwide as well as by state and metropolitan statistical area.

The report also provides a breakdown of average property taxes in 2014 and effective property tax rates — which is the average property taxes for single family homes in 2014 divided by the average estimated value of single family homes as of the end of 2014 — by number of years owned and by property value range.

Owners of very high end and very low end homes pay the highest property tax rates

Nationwide, the average effective property tax rate for all single family homes in 2014 was 1.29 percent, but the average effective property tax rate was 1.68 percent for homes valued $50,000 or below and 1.40 percent on homes valued between $50,000 and $100,000. Meanwhile the average effective property tax rate was 1.56 percent on homes valued $1 million to $2 million and 1.77 percent for homes valued $2 million to $5 million. 

Homeowners who have owned between 5 and 15 years have highest property tax rates

The report found that homeowners who have owned five to 15 years had the highest effective property tax rates while those who have owned more than 20 years had the lowest effective property tax rates. The average effective property tax rate was 1.35 percent for homeowners who have owned between 10 and 15 years, and it was 1.34 percent for homeowners who have owned between 5 and 10 years. Meanwhile, the average effective property tax rate was 1.18 percent for homeowners who have owned less than 1 year, and it was 1.15 percent for homeowners who have owned more than 20 years.

“State laws like Prop 13 in California give a property tax advantage to homeowners who have owned for a longer time, but the bell curve in effective property tax rates in the middle of the years-owned spectrum indicates that many who purchased during the housing bubble — or in the years leading up to the housing bubble — may be paying taxes based on a still-inflated valuation of their properties,”  said Daren Blomquist, vice president at RealtyTrac. “These homeowners should consider appealing their property’s assessment if that is an option available to them in their county.”

Higher-end homes account for more than half of all property tax dollars nationwide

Single family homes valued above $300,000 accounted for 25 percent of all single family homes nationwide, but the property taxes paid on those homes account for 54 percent of all property taxes paid nationwide.

Single family homes values up to $300,000 accounted for 75 percent of all single family homes but 46 percent of the total property taxes paid nationwide. 

States with highest property taxes and rates

States with the highest effective property tax rates were New York (3.01 percent), Texas (2.18 percent), Illinois (2.15 percent), Connecticut (2.11 percent) and New Jersey (2.01 percent).

States with the highest average property taxes in dollars for single family homes were New York ($15,625), New Jersey ($8,108), New Hampshire ($5,795), Connecticut ($5,646), and Hawaii ($5,024).

States with lowest property taxes and rates

States with the lowest effective property tax rates were Alabama (0.40 percent), Wyoming (0.55 percent), Colorado (0.55 percent), West Virginia (0.60 percent) and Tennessee (0.64 percent).

States with the lowest average property taxes in dollars for single family homes were Alabama ($618), West Virginia ($931), New Mexico ($1,096), Tennessee ($1,116) and Indiana ($1,418).

Counties with the highest property taxes and rates

Among the 1,042 counties with sufficient tax assessor and home value data analyzed in the report, those with the highest effective property tax rates in 2014 were Westchester County, New York, in the New York metro area (7.53 percent), Bexar County, Texas, in the San Antonio metro area (3.32 percent), De Kalb County in the Chicago metro area (3.27 percent), Passaic County, New Jersey in the greater New York metro area (2.98 percent), and Milwaukee County, Wisconsin (2.96 percent).

Counties with the highest average 2014 property taxes in dollars for single family homes were Westchester County, New York ($56,124), New York County, New York ($38,574), Nassau County, New York ($11,587), Marin County, California ($11,422), and Bergen County, New Jersey ($11,159).

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The RealtyTrac U.S. Property Tax Report is the result of a proprietary evaluation of information compiled by RealtyTrac; the report and any of the information in whole or in part can only be quoted, copied, published, re-published, distributed and/or re-distributed or used in any manner if the user specifically references RealtyTrac as the source for said report and/or any of the information set forth within the report. 

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About RealtyTrac
RealtyTrac is a leading supplier of U.S. real estate data, with nationwide parcel-level records for more than 129 million U.S. parcels that include property characteristics, tax assessor data, sales and mortgage deed records, Automated Valuation Models (AVMs) and 20 million active and historical default, foreclosure auction and bank-owned properties. RealtyTrac’s housing data and foreclosure reports are relied on by the Federal Reserve, U.S. Treasury Department, HUD, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate.

Media Contacts:
Jennifer Von Pohlmann
949.502.8300, ext. 139
jennifer.vonpohlmann@realtytrac.com

Ginny Walker
949.502.8300, ext. 268
ginny.walker@realtytrac.com

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