Property Taxes by State

A property tax is basically an ad valorem tax. All real estate or property owners are subjected to
property taxes by townships, counties or local-level government authorities. These taxes vary and
are based on the property tax rate, and the said properties' assessed value. A few exemptions and
deductions can be availed by certain real estate owners. Barring such instances, almost all real
property is subject to property tax. In addition to standard tax on real estate, it also extends to some
valuable assets such as yachts, expensive collector goods, business inventory etc.
Property Taxes by State
State Property Tax
(Average) Alabama $503 Alaska $1,728 Arkansas $549 Arizona $1,119 California $1,465 Color
ado $1,277 Connecticut $2,473 District of
Columbia $3,035 Delaware $712 Florida $1,589 Georgia $1,092 Hawaii $983 Iowa $1,305 Ida
ho $813 Illinois $1,777 Indiana $1,124 Kansas $1,353 Kentucky $663 Louisiana $702 Massach
usetts $1,873 Maryland $1,205 Maine $1,640 Michigan $1,234 Minnesota $1,210 Missouri $2,
625 Mississippi $793 Montana $2,625 North Carolina $867 North
Dakota $1,165 Nebraska $2,625 New Hampshire $2,625 New Jersey $2,625 New
Mexico $606 Nevada $2,625 New
York $2,136 Ohio $1,135 Oklahoma $597 Oregon $1,172 Pennsylvania $2,625 Rhode
Island $2,019 South Carolina $970 South
Dakota $1,111 Tennessee $748 Texas $1,475 Utah $863 Virginia $1,481 Vermont $2,056 Was
hington $1,226 Wisconsin $1,633 West Virginia $709 Wyoming $2,285
(Please note that the tax figures, mentioned here, are indicative of the amount an individual needs to
pay. These have been compiled by averaging the collections per capita. Taxes vary substantially, as
the market value of the property depends on the evaluation made by the assessor.)
The property or real estate taxes that are levied by state, are usually collected by the Department of
Revenue, of that particular state. This tax is considered to be one of the biggest sources of income in
almost all states. These taxes are basically used in order to fund the welfare activities such as
construction of public amenities by states and local government. A tax assessor determines the value
of a particular house or any real estate. There are two basic constituents of the property that are
considered by the assessor. These are:

The actual site value of the building according to

original prices and actual market prices. Home
improvements and upgrade of the house. The
upgrade factor is always considered to be an
addition to the cost of the property. The tax
assessor is basically a public officer, however
there are also some certified tax assessors who operate privately. The office of tax assessors, often
maintain 'tax maps' that record and keep tabs of the rates of market prices as well as value-added
improvements in the property. Apart from the tax maps, assessors also use the Assessors Parcel
Numbers, which are unique identification numbers that help them and also taxpayers in tax filing
processes. These tools are basically used to conclude the value of the property on which a specific

tax rate is levied.

Facts About Property Tax
The rate of taxation is a percentage that is prescribed by the state and applied to the value of
property, that is evaluated by a tax assessor. The total amount of real estate tax that is paid to the
state, becomes a valid ground for income tax deduction, according to IRS forms. On an average, real
estate tax by state is used for public welfare services, by the state government. For example, in the
state of Texas, this tax is used to fund public schools. The rate of taxation can go as high as 1.74%
of the home value (for the state of New Jersey) and can also be as low as 0.14% (state of
Louisiana). The commercial property tax may have some different terms and conditions for
assessments as the property is used solely for the purpose of making profit, by giving it out for rent.
The same goes for business property tax, as the property is used for the purpose of business
operations. The industrial properties is another story, as it is used for production purposes. Thus,
the purpose of the property, is also an important factor, when it is being assessed. The property tax
changes every year as it is not under federal jurisdiction, and the amount of tax depends on the
assessment of your real estate. While filing for a property or real estate tax, it is essential to follow
the guidelines that have been issued by the state. It is also recommended that you file for a tax
deduction with the IRS on the basis of property tax that has been levied by the state. It can be
concluded that the better the condition of your house in terms of home improvement, the better are
your tax filing forms, as it shows a greater assessed value of the property and at the same time,
home improvement costs become excellent grounds for itemized tax deductions of the IRS.