State Homeowners Pay The Highest And Lowest Property Taxes

[William Hull]

Deductions for state and local taxes may be done away with if the recently released currently tax proposal put out by the White House goes through. This area is a particularly controversial part of Donald J. Trump's new tax plan. If passed, this could increase the state and local tax burden. It is likely that this would be most felt in states that already have a high tax rate. Economists suggest that this could have a direct effect, likely negative, on the housing market as property owners, already frustrated with having to pay high taxes lose their relief by way of their deduction. Although an important revenue stream, nobody likes to pay taxes on what they've already purchased. Most affected would be those with higher value homes and those who happen to live in a high tax state or a particularly high tax areas of their state. There is a wide range in what property owners pay in taxes throughout the United States. According to the Tax Foundation in Washington, D.C., the medium property tax is $2,149. However, in some places the annual median was all the way up to $10,000. Conversely, it can be as low as $200 in other areas. In comparing the high and low taxes that exist from state to state and county to county, economists wonder if eliminating this deduction will cause many to seek relief by moving out of areas with the highest of tax rates.

Key Takeaways:

• change is on its way when it comes to taxes. the changes in taxes in your local area but stemming all the way down from the executive branch of the u.s. government.
• the average citizen, I'm sure, are overwhelmingly supportive of changes in tax laws especially when it comes to property taxes which vary from location to location and state to state.
• state and local governments receive a huge chunk of revenue from property taxes. In this property taxes are lowerd or eliminated all together our local governments can take a huge financial hit.

"The effective property tax rate in Alabama is a mere 0.38%, second lowest in the country"

Read more: https://www.forbes.com/sites/samanthasharf/2017/05/01/where-in-your-state-homeowners-pay-the-highest-and-lowest-property-taxes/