Property Tax Rates Vary Across and Within Counties

Filed in Economics by on April 15, 2016 4 Comments

A new NAHB Economics research article shows that the effective real estate tax rates vary substantially across and within counties, with the highest rate area displaying rates that are often several times higher than the lowest rate areas within the same county.

An effective property tax rate is the amount of property tax paid divided by the value of the home as reported by home owners, thus giving an apples-to-apples comparison of the true tax burden for homes in various locations.

As NAHB economist Natalia Siniavskaia explained in a recent Eye on Housing blog post, the report presents tables of effective property tax rates for more than 3,100 counties, mapped below, including the lowest and highest tract rates within each county.

At the low end of the national spectrum, there are 12 Louisiana parishes registering property tax rates that are effectively under $2 per $1,000 of value. At the high end, there are Orleans and Monroe Counties, New York and Camden County, New Jersey, with property tax rates averaging close to $29.

The regional location remains a strong factor in explaining substantial differences in effective tax rates. The South typically registers some of the lowest rates, with the exception of Texas, and the Northeast and Midwest have some of the highest rates in the nation. This is a reflection of a well-known and long-established tradition of southern states to rely less on real estate taxes as a source of government revenue.

The research should be useful for prospective home buyers and businesses in the housing industry interested in comparing effective property tax payments across narrowly defined geographic areas.

The complete NAHB report is available to the public as a courtesy of Housing Economics Online.

Proptaxrate_cty201014

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Comments (4)

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  1. Mary O'Neil says:

    THIS is some incredibly cool data! I had no idea that Texas tax rates were so high, and for those of us who work a lot with relocating individuals, this could be a great tool. And, interestingly, there are a few major metro areas indicated that look like they don’t have outrageous property taxes. Is there any info in the attached report about tax rate increases/decreases over time?

  2. This information is completely incorrect. The rates in Caddo Parish in Shreveport, LA are $16.66 so you should definitely have a red mark in that spot. I think New Orleans has equal rates. It is very misleading to publish a map with this many inaccuracies. There was an article by our local press using your map boasting about our low property taxes, which are definitely NOT LOW at all. (We should be in the RED area.)

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