Skip to main content

As property tax season sweeps through the Lone Star State, Texans face the reality of their tax obligations. Recent data, courtesy of WalletHub’s 2024 property tax report, places Texas at the seventh spot for property tax burdens nationwide.

The report reveals a significant uptick in the median home value in Texas, soaring to $238,000. This marks a substantial increase of $35,400 from the previous year, presenting homeowners with a notable adjustment in their property valuation. However, amidst this rise, Texans can find comfort in their effective real estate tax rate, which stands at 1.63 percent, slightly lower than the preceding year’s 1.74 percent. This translates to an average property tax bill of $3,872 for homeowners across the state.

Cassandra Happe, an analyst at WalletHub, underscores the importance of property tax rates in the decision-making process for individuals contemplating relocation. She advises prospective movers to factor in property tax rates alongside other financial considerations to make informed choices about their future residences.

While Texans may grumble about their property tax bills, they can take solace in the fact that they do not reside in New Jersey. New Jersey has clinched the top spot for the second consecutive year’s highest property tax rate nationwide. Homeowners in the Garden State face an average annual property tax bill exceeding $9,300. This hefty burden is propelled by a median home value of $401,400 and an effective tax rate of 2.33 percent.

Conversely, Hawaii emerges as a beacon of relief for homeowners. For the second year running, it boasts the lowest property tax rate in the country, standing at a mere 0.27 percent. Despite the high median home value of $764,800, homeowners in the Aloha State shoulder a relatively modest property tax burden of $2,054.

Beyond property taxes, the report also sheds light on vehicle property taxes, revealing varying landscapes across states. Texans can sigh relief knowing they are exempt from annual vehicle property taxes. Instead, Texas vehicle owners are only subject to a 6.25 percent tax rate on the purchase price of a car. Furthermore, WalletHub’s findings disclose that 23 other states, including Washington, D.C., do not impose vehicle property taxes.

In states where vehicle property taxes are levied, rates vary significantly. Louisiana boasts the lowest rate at 0.10 percent, while Virginia holds the dubious distinction of the highest rate at 3.97 percent.

In summary, as Texans navigate through property tax season, they find themselves not alone in facing tax challenges. With varying tax landscapes across states, homeowners and vehicle owners experience a mix of relief and burden as they fulfill their tax obligations, shaping their financial realities in unique ways.

Source ( abc13 News).