The average U.S. household spends $3,119 annually on property taxes, with an additional $499 for vehicle property taxes in 26 states, according to the U.S. Census Bureau. WalletHub’s 2026 Property Taxes by State report reveals significant disparities across states. “Some states charge no property taxes at all, while others charge an arm and a leg,” said WalletHub Analyst Chip Lupo. Hawaii has the lowest real estate tax, while New Jersey has the highest, being 7.9 times more. Blue states have 27.02% higher real estate taxes than red states. Mitchell Franklin, Ph.D., CPA, emphasizes the need for fiscal discipline, saying: “Over-taxation risks destabilizing housing markets and eroding community wealth.” He advises that property taxes should be a key consideration for families when moving, as they can greatly impact financial planning and affordability.
