(The Center Square) – Few, if anyone, enjoy paying taxes, but Kentuckians might feel a little better than others with one of the nation’s smallest effective real estate property tax rates, according to a recent study.
WalletHub, a personal finance website, analyzed all 50 states and the District of Columbia in terms of real estate and vehicle property taxes to rank which states have the largest property tax load.
Kentucky ranks 23rd in the nation in terms of the lowest real estate property tax rate at 0.86%. That means a person who owns at home at the state median value of $141,000 pays $1,210 in taxes each year.
In Hawaii, which has the nation’s lowest rate of 0.28% and a median home value of $615,300, a homeowner pays $1,715 in taxes.
Kentucky ranks well ahead of neighboring Ohio, Illinois and Missouri but behind Indiana, West Virginia, Virginia and Tennessee.
On average, according to the U.S. Census Bureau, Americans spend $2,471 annually on property taxes for their homes, and 27 states also add on an average of $442 with vehicle property taxes.
“And though property taxes might appear to be a non-issue for the 36% of renter households, that couldn’t be further from the truth,” said John S. Kiernan, WalletHub managing editor. “We all pay property taxes, whether directly or indirectly, as they impact the rent we pay as well as the finances of state and local governments.”
Following Hawaii as the country’s lowest in terms of property taxes were Alabama, Colorado, Louisiana and the District of Columbia.
The country’s highest rates were found in New Jersey, Illinois, New Hampshire, Connecticut and Vermont.