Each year, the average American household spends $2,375 on real estate property taxes. Guess what, Texas: we're definitely not average.
Cash-strapped Texans might not be surprised to learn that we have some of the highest property taxes in the country, according to a new report from personal finance site WalletHub.
The 2020 Property Taxes by State report shows that Texas ranks No. 45 out of 51 (the District of Columbia was also included). Our effective real estate tax rate is 1.81 percent, meaning the annual taxes on a home worth $205,000 are $3,703.
A tiny bit of good news is that the median home price in Texas is actually much lower than that, at $161,700. That means taxes for a median-priced home are around $2,922.
To put this in perspective, No. 1 Hawaii only has a real estate tax rate of 0.27 percent, resulting in a measly $560 per year on a $205,000 home. Even though the median home price in the Aloha State is much, much higher — a whopping $587,700 — that still only translates to $1,607 a year in property taxes.
At least we aren't New Jersey, which claimed last place with a real estate tax rate of 2.47 percent. Annual taxes on a median-priced home of $327,900 are a staggering $8,104.
And while real estate taxes might be taking a toll on Texas wallets, we can count our blessings that our state has no vehicle property tax or income tax. This raises real estate taxing, but it does reduce the overall taxes we pay each month. See, don't you feel better?