The Learning Center

The 10 Worst States for Property Taxes

Top 10 worst states for property taxes:

New Jersey: 1.89 percent
New Hampshire: 1.86 percent
Texas: 1.81 percent
Nebraska: 1.76 percent
Wisconsin: 1.76 percent
Illinois: 1.73 percent
Connecticut: 1.63 percent
Michigan: 1.62 percent
Vermont: 1.59 percent
North Dakota: 1.42 percent

The difference between the state with the lowest rates—Louisiana—and New Jersey’s highest rate is a whopping 1.71 percent. It may not sound like much but when it’s correlated to a home’s value it can come out to a pretty significant property tax bill, particularly on a luxury home.

It’s All Relative

Some states that impose formidable property tax rates, such as New Hampshire and Texas, give residents a few breaks in other major tax categories. For example, Texas has no state income tax. These states therefore rely heavily on property taxes to make ends meet.
On the other side of the equation are states that impose high taxes across the board, such as New Jersey and Illinois.
Property taxes are not set solely at the state level. Cities, counties and local school boards get involved, so taxes in one area of a state might be higher than those in other areas.
Several states offer property tax exemptions for senior citizens, veterans, and the disabled, and some offer homestead exemptions for at least a portion of your home’s value if you actually live in the residence—it’s not a rental or investment property.
You might also qualify for a state tax credit based on the amount of your property taxes. You can often ask for relief if you’re going through tough financial times. Some taxing authorities will defer your payments for a period of time.
The worst thing you can do is ignore that tax bill if it’s not included in your monthly mortgage payment, which is often the case.

Who Sets Home Value?

You can’t simply tell the state, county, or municipality how much you think your home is worth and let them take it from there. Your home’s value for property tax purposes is based on appraised fair market value. And, no, the appraiser is not an independent third party.

Property tax assessors typically work for the government. Most states have an appeals process in place, however, so you have some recourse if you receive an astronomical assessment. If you’re considering adding a second floor to your home or putting an in-ground swimming pool in your back yard, you can expect your tax bill to go up. Improvements such as these will almost certainly increase your home’s fair market value. You’ll find yourself paying more in property taxes even if your state’s tax rate remains the same.

The values of other homes in your area can be taken into account as well.

Americans are moving westward, flocking to the Mountain and Pacific West

Americans are moving westward, flocking to the Mountain and Pacific West, while the Northeast and Midwest continue to lose residents. In 2017, more residents moved out of Illinois than any other state with 63 percent of moves being outbound. Vermont had the highest percentage of inbound migration in 2017 with nearly 68 percent of moves to and from the state being inbound. Those are the results of the United Van Lines’ 41st Annual National Movers Study, which tracks customers’ state-to-state migration patterns over the past year.

As a region, the Mountain West continues to increase in popularity with 54 percent of moves being inbound. The West is represented on the high-inbound list by Oregon (65 percent), Idaho (63 percent), Nevada (61 percent) Washington (59 percent), and Colorado (56 percent). Of moves to Oregon, the highest ranking western state, a new job or company transfer (49 percent) and proximity to family (24 percent) led the reasons for most inbound moves.

The southern states also saw a high number of people moving in with 52 percent of total moves being inbound. United Van Lines found the top reasons for moving south included company transfer/new job, retirement and proximity to family.

The Northeast continues to experience a moving deficit with New Jersey (63 percent outbound), New York (61 percent) and Connecticut (57 percent) making the list of top outbound states for the third consecutive year. Massachusetts (56 percent) also joined the top outbound list this year.

“For more than 40 years, United Van Lines has been tracking which states people are moving to and from. We also survey our customers to understand why they are moving from state-to-state,” said Melissa Sullivan, director of marketing communications at United Van Lines. “As the nation’s largest household goods mover, the data we collect is reflective of national migration trends.”

“This year’s data reflects longer-term trends of movement to the western and southern states, especially to those where housing costs are relatively lower, climates are more temperate and job growth has been at or above the national average, among other factors,” said Michael Stoll, economist and professor in the Department of Public Policy at the University of California, Los Angeles. “We’re also seeing continued migration to the Pacific Northwest and Mountain West as young professionals and retirees leave California.”

The Mountain West was the most popular destination for retirees with one in four movers indicating they chose to move to this location for retirement. Top regions attracting movers taking new jobs included the Midwest (61 percent) and Pacific West (59 percent). The region with the largest exodus of residents due to finding jobs elsewhere was the South (61 percent). Across all regions, nearly one in five of those who moved in 2017 moved to be closer to family.

United Van Lines has tracked migration patterns annually on a state-by-state basis since 1977. For 2017, the study is based on household moves handled by United within the 48 contiguous states and Washington, D.C. This study ranks states based off the inbound and outbound percentages of total moves in each state. United classifies states as “high inbound” if 55 percent or more of the moves are going into a state, “high outbound” if 55 percent or more moves were coming out of a state or “balanced” if the difference between inbound and outbound is negligible.

Moving In
The top inbound states of 2017 were:
1. Vermont
2. Oregon
3. Idaho
4. Nevada
5. South Dakota
6. Washington
7. South Carolina
8. North Carolina
9. Colorado
10. Alabama

New to the 2017 top inbound list are Colorado at No. 9 and Alabama at No. 10 with 56 and 55 percent inbound moves, respectively.

Moving Out
The top outbound states for 2017 were:
1. Illinois
2. New Jersey
3. New York
4. Connecticut
5. Kansas
6. Massachusetts
7. Ohio
8. Kentucky
9. Utah
10. Wisconsin

Illinois (63 percent) moved up one spot on the outbound list to No. 1, ranking in the top five for the past nine years. New Jersey previously held the top spot for 5 consecutive years. New additions to the 2017 top outbound list include Massachusetts (56 percent) and Wisconsin (55 percent).

Balanced

Several states gained approximately the same number of residents as those that left. This list of “balanced” states includes Nebraska and New Hampshire.

For more information about the National Movers Study, please email: UniGroupMediaInquiries@fleishman.com.