Homeowners in New Jersey pay the highest property taxes in the US, with the average homeowner estimated to pay $375,683 over their lifetime, according to a new analysis.
The study highlights significant regional differences in the long-term cost of homeownership across the US, with East Coast states dominating the rankings for the highest property tax burden.
Conducted by certified public accountants Ahad&Co CPAs, the research analysed each state’s median annual property tax, the average age of first-time homebuyers, and residents’ life expectancy to estimate lifetime property tax costs.
With the median age of first-time homebuyers in the US at 38, New Jersey tops the rankings. The state has a median annual property tax of $9,163 and a life expectancy of 79 years, meaning the typical homeowner is estimated to pay $375,683 in property taxes over 41 years. That is 220% higher than the national average of $117,346.
The 10 states with the highest lifetime property taxes are
| Rank | State | Lifetime property tax |
|---|---|---|
| 1 | New Jersey | $375,683 |
| 2 | Connecticut | $261,908 |
| 3 | New York | $259,325 |
| 4 | New Hampshire | $251,400 |
| 5 | Massachusetts | $238,661 |
| 6 | California | $204,560 |
| 7 | Illinois | $198,471 |
| 8 | Vermont | $194,040 |
| 9 | Rhode Island | $185,760 |
| 10 | Washington | $179,120 |
Alabama was found to have the lowest estimated lifetime property tax burden. With median annual property taxes of $786 paid over an estimated 34 years, the average homeowner is expected to pay $26,724 in property taxes during their lifetime. That is 77% lower than the national average of $117,346.
Commenting on the findings, Ahad Ali, CEO of Ahad&Co CPAs, said: “Owning property is not an easy achievement. It can take years of saving, and when you do own property, it’s something that should be celebrated.”
“However, all too often, homeowners forget to consider property tax when purchasing a home. For those in East Coast states such as New York, New Jersey, and Connecticut, lifetime property tax costs can be extraordinarily high. Without the right financial planning, this can quickly become a financial burden.”
“What stands out is that property tax is often the forgotten cost of homeownership. Buyers focus on the mortgage payment, but in New Jersey, property tax alone adds more than $9,000 a year, the equivalent of a second significant monthly bill.”
“This is particularly relevant for the states mentioned. The study shows that homeowners in New Jersey are estimated to pay around 14 times more in lifetime property taxes than homeowners in Alabama, which is an extraordinary disparity. If you’re considering relocating to another state, this study provides an indication of where property tax costs are likely to be much higher and where homeowners may be able to keep more of their money.”
The findings highlight how property taxes, often overshadowed by mortgage costs, can represent a substantial long-term financial commitment. For prospective homebuyers and those considering relocation, understanding these lifetime costs alongside house prices and other living expenses can be an important part of the decision-making process. Financial experts generally recommend factoring annual property tax rates into affordability calculations from the outset, particularly for families planning to remain in a home for the long term.