National Tax Day is April 15: Here are the Top 10 Highest and Lowest Taxed Areas in the U.S.

by Carson BuckApril 9, 2019

One of Two Things You Can’t Get Out Of

As Benjamin Franklin said about the permanence of our Constitution, “…in this world, nothing can be said to be certain, except death and taxes.” If Mr. Franklin were alive today, he might add more to the list, but as sayings go, his sentiment regarding the unavoidable permanence of death and taxes is “right on the money.”

That said, not all taxes are created equal. While you’re grinning and bearing the payment of your income tax this spring, it’s important to note that those taxes have little to do with where you have chosen to make your home. Further, those taxes do not get spent in accordance with your immediate location, either.

This year around tax day, you might take a moment and reflect on the one tax you pay that is based on where you live, and does mostly stay local as it is allocated: property tax.

highest and lowest tax areas

How Property Tax Works

While there is no national standard for determining property taxes (hence the huge difference between the amount levied in the nation’s top ten most taxed areas and the rates in the least taxed counties), there are similarities in how property taxes are assessed. First of all, property tax does not just apply to real estate. There are portions of the country where people are required to pay property tax on personal property, as well.

For this post, we will focus on property taxes, or as some areas call it, mileage rate, only as it applies to real estate. Generally speaking, property tax is almost always computed by taking the fair market value of the real estate in question, together with any permanent structures on it, and multiplying that figure by an assessment ratio and then a local tax rate. Values are typically determined by the governing body (usually the county), and have been known to be a source of some dispute.

highest and lowest tax areas

The Nation’s Ten Most Heavily Taxed Areas

The suburbs of Manhattan in New York, and the city’s other suburbs in the northern part of New Jersey, have the highest general property taxes of anywhere in the country.

The Nation’s Ten Most Heavily Taxed Counties:

  1. Westchester County, NY $9,647
  2. Nassau County, NY $9080
  3. Bergen County New Jersey $8,893
  4. Hunterdon County, New Jersey $8,764
  5. Rockland County, NY $8,762
  6. Essex County New Jersey $8,541
  7. Morris County New Jersey $8,165
  8. Somerset County, New Jersey $8,058
  9. Passaic County New Jersey $8,047
  10. Union County, New Jersey $7,944

highest and lowest tax areas

The Ten Lowest Property Tax Areas in the U.S.

For the nation’s lowest general property tax rates, you’ll have to travel several hundred miles south of New York City, to the Deep South, where Alabama and Louisiana have many of the lowest property tax rates of any area in the country.

  1. Autauga County, Alabama $123
  2. Red River Parish, Louisiana $205
  3. Franklin Parish, Louisiana $207
  4. Fayette County, Alabama $209
  5. Marion County, Alabama $218
  6. St. Landry Parish, Louisiana $219
  7. Clay County, Alabama $220
  8. Sabine Parish, Louisiana $223
  9. Jackson Parish, Louisiana $225
  10. Bibb County, Alabama $225

Picking a New Home Based on Your Tax Burden

If you’re one who’s prone to shopping around and you’re currently looking to relocate, but want to make sure you’re not getting into a heavily taxed area, you’re in luck. CNN has published an interactive nation-wide property tax map that allows you to research any county in the nation. You may not be able to escape the permanence of property tax, but you might be able to minimize its impact!

 

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About The Author
Carson Buck
Carson is a real estate agent based out of Phoenix, Arizona. Carson loves data and market research, and how readily available it is in today's world. He is passionate about interpreting these insights to help his clients find and buy their perfect home. Carson got into the real estate industry because he loves the feeling of handing over the keys to a new home to happy clients. In his free time, he works on his backyard bonsai garden and spends time with his wife, Julia.

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