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- Property taxes are a major expense that homeowners face annually.
- Your total property tax bill will depend on your home’s assessed value and the tax rates for your area.
- Homeowners in New Jersey pay the highest property taxes, while those in Hawaii pay the lowest.
If you want to become a homeowner, you’ll want to make sure you can afford your area’s property taxes. Because property taxes vary so much from state to state and even county to county, a home that’s affordable for you in one part of the country could be a budget-buster in a different zip code.
Here’s what to know about property taxes across the country.
What are property taxes?
When you buy a house in the U.S., you’ll need to pay property taxes on the home. These are paid annually, can change over time, and go toward paying for various local and government services.
Definition and purpose
Property taxes, also called ad valorem taxes, are a type of governmental tax on real estate. The money from these taxes is used to fund local schools, infrastructure, and services — things like police, EMT, and firefighter departments.
