"The highest property taxes in the US: California is not among the top five states."."

According to an analysis by the Tax Foundation, the amount of property taxes that Americans pay annually can vary by thousands of dollars depending on where they live. According to data provided by CNBC Make It, the average property tax in New Jersey is $8,797, which is the highest among all U.S. states. In Alabama, however, the average property tax is only $646.

The difference in tax amounts was calculated based on data from the five-year population census up to 2021, which is the most current information available. When examining the tax amounts for all states and the District of Columbia, it was found that the average tax bill is $2,331.

The differences between states are mainly due to varying housing prices and property tax rates, which range from an average effective rate of 0.32% in Hawaii to 2.23% in New Jersey, according to an analysis by the Tax Foundation based on 2021 census data.

New Jersey is facing a double problem:

has the highest effective property tax rate in the US, as well as some of the highest housing costs in the country. As a result, property owners pay a significant amount in property taxes.

Hawaii has the lowest tax rate of all the states.

However, property prices are also very high, which places Hawaii closer to the middle of the list in terms of actual property tax expenses.

Property taxes generate 32.2% of the revenues for state and local budgets, according to a study.

In states where there is an emphasis on local governance at the county and city level, property tax bills are usually higher. Such states include New Jersey, New York, and Illinois.

Property taxes can also be surprisingly high in states with low taxes, such as Texas and New Hampshire. These states do not impose a personal income tax, so they rely on property tax revenues to fund public services.

It is worth noting that property taxes can vary significantly within a single state: property owners in urban areas typically pay more than those in rural areas due to the higher property values and infrastructure costs.

To calculate the average amount of property tax, the Tax Foundation used the median value of taxes paid on owner-occupied housing from 2017 to 2021 based on U.S. Census data. The data does not include property taxes paid by businesses and renters.