Each year, the average American household spends $2,375 on real-estate property taxes plus another $441 for residents of the 27 states with vehicle property taxes. With such high costs, it’s no surprise that more than $14 billion in property taxes go unpaid each year, according to the National Tax Lien Association.
In order to determine who pays the most relative to their state, the personal-finance website WalletHub has released its 2020 Property Taxes by State report that compares home and vehicle taxes across the nation and features insights from a panel of experts.
Twenty-three states have no vehicle property taxes at all. The study found that Virginia’s citizens have the highest vehicle property tax rate in the country at 4.05 percent, resulting in average payments of $1,011.22 annually. Virginia is the only state to top $1,000 in average annual vehicle taxes. Louisiana has the lowest average vehicle property tax at $24.95.
Virginia’s homeowners do some better when it comes to real estate property taxes, paying an average of $2,155 annually on a home priced at the state’s median value. Virginia’s estate tax rate of 0.81 percent ranks 18th among the states. Hawaii has the lowest estate tax rate at 0.27 percent. New Jersey’s 2.47 percent is the highest in the nation.