Property taxes are a big deal for homeowners. They can make or break your budget, especially if you live in a state where rates keep climbing. For many, property taxes are now the largest annual expense after the mortgage. If you’re thinking about buying a home, or you already own one, you need to know where property taxes are getting out of hand. High property taxes can eat into your savings, limit your options, and even force you to move. Here’s what’s happening in seven states where property taxes are becoming unmanageable—and what you can do about it.
1. New Jersey
New Jersey has the highest property taxes in the country. The average homeowner pays over $9,000 a year. That’s a huge chunk of change, no matter your income. The state’s high rates come from a mix of expensive schools, local government costs, and limited state aid. If you live here, you might feel trapped. Downsizing or moving to a nearby state can help, but it’s not always easy. Some people try to appeal their property assessments, but success rates are low. If you’re in New Jersey, keep a close eye on your annual assessment and look for any errors that could lower your bill.
2. Illinois
Illinois is another state where property taxes are out of control. The average effective property tax rate is about 2.1%, which is among the highest in the U.S. In some countries, it’s even higher. Many homeowners pay more in property taxes than they do for their mortgage. The state’s pension crisis and local government spending drive these costs. If you’re in Illinois, check if you qualify for exemptions, like the homestead exemption or senior freeze. These can help, but they don’t solve the bigger problem. Some families are leaving the state for places with lower taxes, but that’s a big step.
3. Connecticut
Connecticut’s property taxes are high and rising. The average bill is over $6,000 a year. Towns rely heavily on property taxes to fund schools and services, so rates keep going up. This hits retirees and people on fixed incomes the hardest. If you’re in Connecticut, review your assessment every year. You can also look into state programs for seniors and veterans. But for many, the only real relief comes from moving to a less expensive area.
4. New Hampshire
New Hampshire doesn’t have a state income or sales tax, but it makes up for it with property taxes. The average effective rate is about 2%. That means a $300,000 home comes with a $6,000 tax bill. Towns use property taxes to pay for almost everything, from schools to roads. If you’re in New Hampshire, you can appeal your assessment, but the process is complicated. Some towns offer tax relief for seniors, but it’s limited. Many residents feel stuck, especially as home values rise and taxes go up with them.
5. Vermont
Vermont’s property taxes are high, especially for people who don’t qualify for income-based relief. The state uses a complicated formula that ties school funding to property values. This means your taxes can jump even if your income doesn’t. The average bill is over $4,000, but it can be much higher in some towns. If you’re in Vermont, check if you qualify for the state’s income sensitivity program. This can lower your bill if your income is below a certain level. Still, many people find the system confusing and the relief too small to make a real difference.
6. Texas
Texas doesn’t have a state income tax, but property taxes are sky-high. The average effective rate is about 1.6%, but in some areas, it’s much higher. Local governments and school districts rely on property taxes for most of their funding. As home values rise, so do tax bills. Many homeowners are shocked by how much they owe each year. If you’re in Texas, you can protest your assessment, and many people do. It’s also smart to check for exemptions, like the homestead exemption, which can lower your taxable value. But with no state income tax, don’t expect property taxes to drop anytime soon.
7. Nebraska
Nebraska rounds out the list with some of the highest property taxes in the Midwest. The average effective rate is about 1.6%, but it can be much higher in rural areas. Farmers and ranchers are hit especially hard, since they own a lot of land. The state has tried to offer relief, but progress is slow. If you’re in Nebraska, check for exemptions and credits, especially if you’re a senior or a veteran. Some people are pushing for a shift to other types of taxes, but change is slow. For now, property taxes remain a big burden.
What You Can Do If Property Taxes Are Too High
If you live in one of these states, you’re not alone. High property taxes are forcing people to rethink where they live and how they budget. Start by reviewing your property assessment every year. Mistakes happen, and you might be able to lower your bill. Look for exemptions and credits that fit your situation. If you’re planning to move, research property tax rates before you buy. Sometimes, moving just a few miles can make a big difference. And if you’re struggling, talk to a local tax professional. They can help you find options you might not know about. Staying informed and proactive is the best way to keep property taxes from taking over your finances.
Have you seen your property taxes go up in recent years? How are you handling it? Share your story in the comments.
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