The Ten States With The Worst Property Taxes

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10. Nebraska
> Average Property Taxes as % of Median Income: 3.98% (10th Most)
> Average Median Property Taxes Paid on Homes: $2,829 (10th Most)
> Unemployment Rate: 4.3% (2nd lowest)
> Average Median Income for Home Owners: $71,120 (14th Highest)
> % decrease in Median Home value (2006-2009): +3.2% (29th greatest increase)

Nebraska residents pay the tenth largest percent of their income on property taxes. Despite this, the homeowners are in a very good position to do so: The state has the second-lowest unemployment rate in the country, as well as the 14th highest median income. Many residents of the state at least have the financial capacity to buy or own a home. Nebraska residents also have the 14th highest median income per homeowner: $71,120 each. Despite a national average decrease of 2%, the average value of Nebraska homes have actually increased 3.2%.

9. Massachusetts
> Average Property Taxes as % of Median Income: 4.17% (9th Most)
> Average Median Property Taxes Paid on Homes: $3,254 (8th Most)
> Unemployment Rate: 8.2% (22nd lowest)
> Average Median Income for Home Owners: $78,194 (6th Highest)
> % decrease in Median Home value (2006-2009): -6.4% (7th greatest decrease)

The average Massachusetts resident spends more than 4% of his or her income on property taxes, the ninth-largest percentage in the county. State homeowners have the sixth-highest median income, and should not be as burdened by property taxes as the residents of most other states. Where residents of the state are being hurt is the decline in property values. Between 2006 and 2009, the median home value in Massachusetts decreased 6.4%, from almost $330,000 to $308,000. In many cases, the decrease in value is almost certainly not reflected in taxes paid, meaning many Massachusetts residents are overpaying for their homes.

8. Wisconsin
> Average Property Taxes as % of Median Income: 4.62% (8th most)
> Average Median Property Taxes Paid on Homes: $3,040 (9th Most)
> Unemployment Rate: 7.4% (14th Lowest)
> Average Median Income for Home Owners: $65,631 (20th Highest)
> % decrease in Median Home value (2006-2009): +5.6% (25th greatest increase)

Like Nebraska, Wisconsin had a modest 5.6% increase in property values between 2006 and 2009, despite a slight drop in the national average over the same period. Also like those in Nebraska, Wisconsin residents are in a good financial position to deal with these taxes. Unemployment is 7.4% in the state, the 14th lowest rate in the country. Average median income among homeowners is a modest $65,531. This number, which is only the 20th-highest in the country, means that the 4.62% of their median income Wisconsin homeowners are paying on these property taxes will probably have a larger impact on the residents than in a state like Nebraska, where median homeowner income is higher.

7. Illinois
> Average Property Taxes as % of Median Income: 4.64% (7th Most)
> Average Median Property Taxes Paid on Homes: $3,271 (7th Most)
> Unemployment Rate: 8.9% (23rd Highest)
> Average Median Income for Home Owners: $67,144 (18th Highest)
> % decrease in Median Home value (2006-2009): +0.8% (35th greatest increase)

Besides owning the 7th highest rate of property taxes as a percent of homeowner income, the key economic indicators related to home ownership and residence taxes fall near the national average. However, there are major disparities between counties in the state. In the wealthier areas, like Kendall County near Chicago, the median home value is $240,600, with residents paying 6.3% of their incomes on homeowner taxes. On the other end of the spectrum, the average property value in Vermilion County, which is in the Eastern part of the state,  is a third of that – $78,300 – and residents only spend 2.8% percent of their incomes on home taxes.

6. Rhode Island
> Average Property Taxes as % of Median Income: 4.9% (6th Most)
> Average Median Property Taxes Paid on Homes: $3,730 (6th Most)
> Unemployment Rate: 11.2% (4th Highest)
> Average Median Income for Home Owners: $76,193 (8th Highest)
> % decrease in Median Home value (2006-2009): -8.4% (6th Greatest decrease)

Rhode island property values declined a staggering 8.4% between 2006 and 2009, the 6th  largest decrease in the country. Despite this, homeowners still pay the 6th most in property taxes as a percent of their incomes, amounting to (a median) $3,730 per household. While state residents have the  8th highest median income, there is mounting pressure on the financial stability of residents because of joblessness – Rhode Island’s unemployment rate is 11.2%, the fourth-highest in the country. This kind of distress is often a cause for states and municipalities to raise property taxes, even in financially difficult periods for their citizens, because of budget concerns..