Each year, the average American household spends $2,969 on real-estate property taxes plus another $492 for residents of the 26 states with vehicle property taxes.
In order to determine who pays the most relative to their state, the personal-finance website WalletHub today released its 2025’s Property Taxes by State report, as well as expert commentary. The report compares home and vehicle taxes across the nation and features insights from a panel of experts.
Property Taxes in New York (1st=Lowest; 25th=Avg.):
- Real-Estate Property Tax Rank: 46th
- Vehicle Property Tax Rank: 1st
- Real-Estate Tax on Median State Home Value: $6,450
- Real-Estate Tax on Median U.S. Home Value: $4,856
- Vehicle Property Tax on Best-Selling Car: $0
Expert Commentary
Do people consider property taxes when deciding where to move? Should they?
“I believe that many buyers of residential property consider the level of property taxes in their analysis of properties. This tends to happen, however, at the extremes. In other words, areas that have relatively low or high taxes, and based on the type of buyers. For many buyers, I do not think taxes are considered enough, even though they often have a significant impact on the owner's payment.”
Dr. Stephen Martin – Clinical Assistant Professor, University of Florida
“Buyers should absolutely consider property taxes when deciding where they want to move. This will be a cost they will bear regardless of whether they have a mortgage or not and is likely only to increase from today.”
Mallory Meehan, Esq., MBA – Associate Clinical Professor; Associate Director for the Borelli Institute of Real Estate Studies, Penn State University
Should nonprofits pay property taxes?
“Based on a market-based system, I think that an argument could be made that not-for-profit entities should pay property taxes. From a social utility perspective, the resources and services that property taxes pay for will still be utilized even if the property is owned by a not-for-profit entity. Also, when property taxes are removed for some properties, it can impact market efficiencies. Finally, a not-for-profit designation is an income tax designation. Whereas, property taxes are a state and local-level tax that, at least in part, generates revenue for local resources and services. Therefore, at a minimum, it would seem reasonable to evaluate the extent to which property taxes should be levied based on the status of the entity.”
Dr. Stephen Martin – Clinical Assistant Professor, University of Florida
“Qualifying nonprofits are exempt from paying property taxes since their mission is to serve rather than profit. The key factor here should be is this organization truly a “nonprofit” and that status should be verified on a continual basis to allow for the exemption to continue applying.”
Mallory Meehan, Esq., MBA – Associate Clinical Professor; Associate Director for the Borelli Institute of Real Estate Studies, Penn State University
Should certain groups of people be exempt from property taxes or be taxed at a lower rate?
“I think the group that is hurt the most by increased property taxes are the elderly who are on a fixed income. Most of the time those individuals have lived in a home for an extended period of time and are now faced with the ever-growing appreciation of their property but no increase in their income. Allowing elderly people to pay a lower rate would certainly benefit that class of people. But I don’t think any specific group of people should be completely exempt from property taxes, barring they do not fit into the categories that are currently exempt.”
Mallory Meehan, Esq., MBA – Associate Clinical Professor; Associate Director for the Borelli Institute of Real Estate Studies, Penn State University