The average American household spends $2,969 on real estate property taxes per year. That’s not the case in Illinois.
According to a new study by WalletHub, the Land of Lincoln has the second-highest property taxes in the nation, behind only New Jersey. This is in line with past trends.
In Illinois, the effective real estate tax rate, meaning the average residential property taxes paid as a percentage of home value, is 2.07%. That means the annual taxes paid on a $303,400 home — 2023’s median U.S. home value — is $6,770.
In Illinois, however, the median home value was a bit lower in 2023: $250,500. That means the typical homeowner there pays $5,189 in annual real estate taxes, putting Illinois at No. 6 in terms of relative taxes. In order, it was more expensive in New Jersey, Connecticut, New Hampshire, New York and Massachusetts.
The states with the highest effective real estate tax rates are:
1. New Jersey (2.23%)
2. Illinois (2.07%)
3. Connecticut (1.92%)
4. New Hampshire (1.77%)
5. Vermont (1.71%)
6. New York (1.6%)
7. Texas (1.58%)
8. Wisconsin (1.51%)
9. Nebraska (1.5%)
10. Iowa (1.43%)
The states with the lowest effective real estate tax rates are:
1. Hawaii (.27%)
2. Alabama (.38%)
3. Nevada and Colorado (both .49%)
5. South Carolina (.51%)
6. Arizona (.52%)
7. Delaware and Idaho and Utah (all .53%)
8. West Virginia (.54%)
9. Louisiana and Tennessee (both .55%)
10. Arkansas (.57%)