The property tax bill averages $4,991 in the Northeast region, making it the highest property taxes in the U.S., according to LERETA, a national real estate and flood service provider.
LERETA used information from the most current billing cycles, January 2015 through April 2016. It analyzed facts at the county level in 33 states, then grouped the regions of the country. The company did not make a distinction between commercial and residential properties.
“It is important for lenders to be aware of this type of regional summary information to confirm average tax billing facts, and to get a sense of how it correlates with their portfolio,” LERETA Data Modeling Analyst Terry Cason said. “Detailed billing data is available to measure against a lender’s established footprint in these areas.”
There were a total of about 89 million parcel records in the company’s analysis including 8.5 million in the Northeast, 12 million in the Midwest, 42 million in the South and 26 million in the West.
Of these regions, the West had the second highest property tax average at $3,673, followed by the Midwest at $2,864 then the South at $2,267.
New York had the highest billing average, due in part to commercial properties in the Manhattan area, at $11,482, according to the data. The second highest billing average is in Connecticut at $6,794, followed by California at $5,156 then Minnesota at $4,022.
That being said, at 2.67%, Illinois has the highest median property tax rate in the U.S., according to a report by CoreLogic.
On the other hand, Alabama had the lowest average property tax at $619, followed by Arkansas at $791.
“The dataset reviewed will be augmented on a periodic basis to include additional data posted according to tax collection requirements,” Cason said.