Iowa and Illinois Both Rank High On Nation’s Property Tax Rankings

It's tax season, so everyone's taking a closer look at their finances, and a new look at different types of taxes will either have you fuming or thankful you live where you do.

WalletHub looked at all 50 states and the District of Columbia to see who was paying the most in property taxes, and Illinois and Iowa were at the top portion of the list.

Iowa Is In The Top 10

WalletHub's method was to look at the real estate property tax rate in each state, then look at what that payment would be on the median home cost in America ($332,700). They also showed the median cost of a home in each state, and the annual taxes at that price.

Iowa ranked the 10th highest in property tax percentage, at 1.39%. At that national median cost of $332,700, you'd be paying $4,634. However, we know that in the state of Iowa, most people's home's aren't anywhere near that cost.

Across the whole state, the median home cost is $208,000, a 46% difference in cost. At the state's median cost, your property taxes would be $2,897.

Also in Iowa, vehicle taxes are 1.00%, so on a $29,000 vehicle, your annual vehicle taxes are like $291.

Illinois is #2

Those that live on the border of Iowa and Illinois have long had thier opinions of living in Illinois vs Iowa, but if you break it down financially, living in Iowa is the cheaper option.

Illinois 2.01% tax rate would mean your payment on a national median home would be $6,694.

In Illinois, the median home price is $263,300. At the state median price, your taxes are $5,298.

The upside is that you don't have to pay vehicle tax.

Who Has The Cheapest?

If you're looking at this and thinking, "I shouldn't be paying that much in property tax. I should move."

Here's the 3 Lowest Taxed States:

#3: Nevada

Nevada's property tax is 0.47%, but their state median is $435,400, over $100,000 higher than the national average. Your tax rate would be $2,027, with a much higher mortgage payment.

#2: Alabama

This is one of the few on top of the list with both a low tax rate and lower than average median home cost.

Alabama's tax rate is 0.38%, with a state median of $209,900. The annual rate for your home would be just $788.

#1: Hawaii

That's right, Hawaii has the lowest property tax in the entire country. Their rate is just 0.27%, and at the national median home value of $332,700, your tax would be just $888, but there's just one problem.

The state's median home value is two and a half times higher than the national median, with the median Hawaiian home is $839,100. That means even with a ridiculously low tax percentage, you're still paying $2,239.