Market Data + Trends

Tax Reform Highlights Focus on Property Taxes, Home Values

Dec. 27, 2017

In January 2017, The National Association of Home Builders' David Logan reported on average property taxes by state, an issue that received much attention due to the GOP's new tax reform bill.

Using 2015 American Community Survey data, the NAHB's Eye on Housing says that New Jersey led the nation with the highest average annual real estate tax (RET) bill of $8,180. The highest property tax states are located in the Northeast while Southern states have the lowest RET bills for their resident homeowners, except for Texas.

Property taxes account for 35 percent of state and local tax receipts, on average. Some state and local governments rely more heavily on property taxes as a source of revenue than others. Texas' local governments fund government obligations by levying the seventh highest effective property tax rate (1.63 percent) in the country, on average.

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