Wallethub: Iowans pay 14th highest property taxes in U.S.

Iowa homeowners pay among the highest property taxes in the country, a new report by the personal finance website WalletHub shows.

Iowa has the 14th-highest property taxes in the U.S., according to the report ā€“ 2020’s Property Taxes by State, which also includes Washington D.C. The annual tax on a $205,000 home, the median home value in the U.S. in 2018, is an estimated $3,195 in Iowa.

The median home value in Iowa is $142,300. The tax on an Iowa home at that value is an estimated $2,219, the report said.

WalletHub compared U.S. Census Bureau data for the 50 states and Washington, D.C., to determine the property tax rankings. It divided the median real estate tax payment by the median home price in each state to produce an effective real estate tax rate. It used the resulting rates to determine the amount paid as real estate tax on a house worth $204,900, the median value for a home in the U.S. as of 2018, according to the Census Bureau.

“Depending on where you live, property taxes can be a small inconvenience or a major burden,” Wallethub Managing Editor John S. Kiernan writes. “The average American household spends $2,375 on property taxes for their homes each year, according to the U.S. Census Bureau, and residents of the 27 states with vehicle property taxes shell out another $441. Considering these figures and the rising amount of debt in America, it should come as no surprise that more than $14 billion in property taxes go unpaid each year, the National Tax Lien Association has found.

Hawaii has the lowest property taxes in the U.S., while New Jersey has the highest, the report said. The tax on a $205,000 home in Hawaii is an estimated $560. The tax on a home of the same value in New Jersey is an estimated $5,064.

ā€“ The Center Square

Free News Delivery by Email

Would you like to have the day's news stories delivered right to your inbox every evening? Enter your email below to start!

Leave a Reply

Your email address will not be published. Required fields are marked *