Community Corner
How Much Rhode Island Homeowners Pay In Property Taxes Each Year
Property taxes are the lifeblood of local governments and municipalities across the United States, accounting for over 70% of all local ...
2022-03-04
Property taxes are the lifeblood of local governments and municipalities across the United States, accounting for over 70% of all local tax revenue. Property taxes – such as taxes levied on homeowners and landowners – go to fund schools, parks, roads, and other public works and services.
Find out what's happening in Providencefor free with the latest updates from Patch.
While states typically impose a minimum property tax, property taxes are mostly determined at the local level – and are often a percentage of a property or home’s overall value. Depending on where you choose to buy a home, property taxes can range from negligible amounts to nearly matching a mortgage payment.
Across Rhode Island, the effective annual property tax rate stands at 1.37%, the 12th highest among states. For context, homeowners in the U.S. pay an average of 1.03% of their housing value in property taxes a year.
Find out what's happening in Providencefor free with the latest updates from Patch.
The effective property tax rate is calculated by taking the total amount of taxes paid on owner-occupied homes in a given area as a share of the total value of those homes. While an effective property tax rate is useful for comparing taxes at the state level, it is important to note that property tax rates can still vary considerably within a given state.
Because property taxes are typically levied as a share of a given home’s value, Americans living in places with higher home values often pay more in property taxes in dollar terms, even if the effective property tax rate is relatively low. In Rhode Island, the typical home is worth $283,000, higher than the national median home value of $240,500.
All data in this story is from the Tax Foundation, a tax policy research organization, and the U.S. Census Bureau’s 2019 American Community Survey.
Can't see the article's infographic? Click here to view the original story. This story was originally published by 24/7 Wall St., a news organization that produces real-time business commentary and data-driven reporting for state and local markets across the country.
