Where does California stand in property tax rankings?
April 8, 2015
The average property tax paid by California real estate owners in 2015 is $1,431. Hawaii has the cheapest property taxes with an average of $431, while New Jersey has the most expensive at $3,971.
Alabama, Louisiana, Delaware and South Carolina round out the five states with the lowest property taxes. Illinois, New Hampshire, Wisconsin and Texas had the highest rates behind New Jersey.
Wallet Hub calculated each state’s average by dividing the median property tax payment by the median home price.
The report found that property taxes were 39 percent higher on average in blue states than in red states. Wallet Hub based that designation on whether states voted Democratic or Republican in the 2012 presidential election.
Proposition 13, which voters passed in 1978, holds down California’s property taxes. Prop. 13 caps property taxes at 1 percent of the assessed value of a home at the time of purchase and prevents taxes from increasing more than 2 percent a year unless a sale or major renovation occurs.