North Carolina lands top 20 spot for property taxes compared to other states
Depending on where you live, property taxes can be a small inconvenience or a major burden. In the Old North State, it appears we’re somewhere in the middle.
In a ranking of property taxes by state, North Carolina tied with New Mexico at No. 18, according to a recent WalletHub study, with an effective tax rate of 0.80%.
For some perspective, take a home worth around $244,900. That’s the median home value in the United States as of 2021, according to the latest U.S. Census data used by the study to compare states.
That would cost residents $1,963 annually at North Carolina’s current tax rate. For a home priced at the state median home value of $197,500, as cited by the study, this puts annual taxes at roughly $1,583.
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The five states where real estate property taxes are lowest are Hawaii, Alabama, Colorado, Nevada and Louisiana.
The five states where real estate property taxes are highest are New Jersey, Illinois, Connecticut, New Hampshire and Vermont.
The study noted the average American household spends $2,690 on property taxes for their homes each year, according to the U.S. Census Bureau.
Blue states have 30% higher real-estate property taxes, averaging $2,991, than red states, averaging $2,297.
North Carolina’s better-than-average ranking could explain why the state remains one of the nation’s fastest-growing states. Experts say property taxes often factor into consideration when people are deciding where to live.
“After all, people are sensitive to price,” said Alex Combs, assistant professor at University of Georgia, as part of the study. “If they have the opportunity, people are going to seek the biggest benefit for their property tax buck.”
This story was originally published February 23, 2023 at 8:00 AM.
