Property taxes are something like a hidden fee on homeownership. You don’t always see them, but they’re there, quietly accumulating in the background until the county sends you a tax bill.
Without them, state and local governments would have much less cash on hand. In fact, property taxes account for roughly one-third of all state and local tax collections in the United States, according to the Tax Foundation. That makes property taxes the largest source of state and local tax collections.
In order to find out who has the tax liability on home and other real estate, WalletHub analyzed data from the U.S. Census Bureau for all 50 states and the District of Columbia. The personal finance website also used the rates to obtain the dollar amount paid in real estate taxes on a median value home in each state. On average, American households spend $2,197 each year on property taxes.
Let’s take a closer look at the 15 states with the highest property taxes in 2018.
Effective real estate tax rate: 1.40%
Kansas ranks as the No. 15 worst state in America for property taxes. Residents can be thankful for a low cost of living that helps ease a high effective rate on real estate.
Overall, Kansas has a median home value of only $135,300, resulting in a $1,890 tax bill. By comparison, neighboring Colorado only has an effective real estate tax rate of 0.60%.
Next: In Iowa, you get affordable homes but rather steep tax rates.