New Jersey residents will pay more than $375,000 in property taxes over their lifetime, the highest of any U.S. state, according to a study by certified public accountants Ahad&Co CPAs. That amount is more than $258,000, or 220%, above the national average of $117,000.
The study used New Jersey's median home sale price of $538,800 as of 2024 and the state's annual property tax rate of 1.7% of that price as of 2023. The analysis considered median annual property taxes, average age of first-time buyers, and life expectancy for all 50 states.
Ahad Ali, CEO of Ahad&Co CPAs, said property tax is often the forgotten cost of homeownership. "Buyers focus on the mortgage payment, but in New Jersey, the property tax alone adds over $9,000 a year, which is the equivalent of a second significant monthly bill," he said.
The next four highest states were also in the Northeast: Connecticut ($261,908), New York ($259,325), New Hampshire ($251,400), and Massachusetts ($238,661). Alabama had the lowest lifetime property taxes at $26,724, followed by West Virginia, Arkansas, Mississippi, and Louisiana.
Ali noted that owning property is not easy and that without proper financial planning, property taxes can become a burden. The study was reported by NorthJersey.com.
Source: yahoo.com
