Illinois has second-highest property tax rate in the nation, finance site says
Illinois homeowners have the second-highest property tax rate in the nation, a personal finance website reports.
WalletHub analyzed the real estate taxes and home values in all 50 states and the District of Columbia to come up with a ranking of the property tax rate. Only New Jersey residents had it worse than Illinois residents, it found.
Illinoisans face an effective property tax rate of 2.31 percent, while New Jersey residents pay 2.44 percent.
For Illinoisans, that comes to an average of $4,157 in property taxes on homes valued on average at $179,700. New Jersey residents pay an average of $7,840 in taxes on homes valued on average at $321,100.
"And though property taxes might appear to be a nonissue for the 36 percent of renter households, that couldn't be further from the truth," WalletHub said. "We all pay property taxes, whether directly or indirectly, as they impact the rent we pay as well as the finances of state and local governments."
The average American household spends $2,279 on property taxes on homes valued on average at $193,500, according to the U.S. Census Bureau.
"The mass exodus from high-taxed states, like California and New York, to lower taxed states, like Arizona and Texas, demonstrate that people absolutely do consider property taxes in deciding where to move," John Plecnik, associated professor of law at Cleveland State University. "If you don't, you should, because you'll pay either way.
"The new rules under the Tax Cuts and Jobs Act of 2017 make the difference between high- and low-taxed states even starker," he said, citing the $10,000 deduction limit on state and property taxes, as well as the increasing likelihood that taxpayers won't itemize deductions on their tax returns in the first place.
Just above Illinois is New Hampshire in the 49th spot, with a rate of 2.20 percent, and Connecticut comes in fourth with a 2.07 percent tax rate. Wisconsin is in the 47th spot with a rate of 1.94 percent.
Illinois has ranked among the worst states for property taxes for the last nine years, according to WalletHub data.
Luckily, for Illinois residents who own both a car and a property, the state does not have a vehicle property tax, unlike the 27 other states that do.
Also fortunately, Illinois' median property value is not among the highest. Topping that list is Hawaii with a $563,900 median home value, the District of Columbia at $537,400, and California at $443,400. Mississippi has the lowest median home value, at $109,300.