Illinois Has 2nd Highest Property Taxes In U.S.

Buying a home can be a great investment, but it's also a pricy proposition, especially when you factor in property taxes. Depending on where you live, real estate property taxes can represent a large chunk of your income, and according to a new study by consumer finance site WalletHub, Illinois has the second-highest real estate property taxes in the nation.

That's no surprise to anyone who lives in the Land of Lincoln, where property taxes seem to ever be on the rise to pay for local government and the bulk of public school funding.

The WalletHub study analyzed the 50 states and the District of Columbia in terms of real-estate and vehicle property taxes. Only New Jersey residents take a harder property tax hit than those of us in Illinois, according to the study.

The average American household spends $2,197 on property taxes on their homes each year, according to the U.S. Census Bureau. In Illinois, the average homeowner pays $4,058, according to the WalletHub rankings, and New Jersey residents pay $7,601.

Those figures are what the resident of a home priced at each state's median value pays; in Illinois, the median home value is $174,800, compared with $316,400 in New Jersey. Nationwide, the median home value is $184,700 based on data from 2016, the year of the most recent available data.

Hawaii has the highest median home value at $538,400, but comes in at No. 1 on the list with the lowest tax rate and an average property tax bill of $1,459.

The study also found that red states (based on how they voted in the 2016 presidential election) impose lower property taxes than blue states.

These states are have the five lowest property tax rates in the nation:

• Hawaii
• Alabama
• Louisiana
• Delaware
• District of Columbia

The five states with the highest property taxes are:

1. New Jersey
2. Illinois
3. New Hampshire
4. Connecticut
5. Wisconsin

View the entire list at WalletHub.com.

Looking for a new home?

Image via Shutterstock