A recent survey by Construction Coverage has highlighted the counties in the United States with the highest and lowest property tax rates. The findings indicate that densely populated areas and those with older infrastructure tend to have higher property taxes due to increased maintenance needs.
According to the report, many of the counties with high property tax rates are located in the Northeast and Midwest, particularly in New Jersey and Illinois. In Illinois, the average property tax rate is 1.825%, while New Jersey’s average is slightly lower at 1.773%.
Conversely, some of the lowest property taxes are found in Alabama and Hawaii. DeKalb County, AL, has a notably low rate of 0.157%, which is significantly less than Salem County, NJ’s rate of 2.382%, currently the highest in the nation.
The determination of property taxes involves understanding both a home’s market value and its tax-assessed value. A county tax assessor evaluates properties based on various criteria such as curb appeal and improvements made to determine their assessed value. Typically, assessment tax rates range between 80% and 90% of a home’s market value.
Another key factor is the mill levy, which reflects an area’s required revenue for public services and influences local tax rates. Areas needing more resources or maintenance often have higher mill levies.
Interestingly, higher home prices do not always equate to higher property taxes due to potential delays between purchase and assessment periods; some assessments occur only every three years.
The study also notes a decline in average effective tax rates over time—from 1.147% in 2012 to 0.909% in 2023.
Counties with high property tax rates include Salem County (NJ) at 2.382%, Monroe County (NY) at 2.314%, Kendall County (IL) at 2.281%, DeKalb County (IL) at 2.212%, Gloucester County (NJ) at 2.208%, Winnebago County (IL) at 2.195%, Camden County (NJ) at 2.188%, McHenry County (IL) at 2.164%, Wayne County (NY) at 2.162%, and Lake County (IL) at 2.161%.
On the other hand, counties with low property taxes feature DeKalb County (AL) with a rate of just 0.157%. Other low-tax areas include Maui County (HI), Cullman County (AL), Apache County (AZ), Elmore County (AL), Sevier County (TN), Tuscaloosa County (AL), St Clair County (AL), Lauderdale County (AL), and Kauai County (HI).
