New Jersey is the most costly state in the U.S. for property taxes, according to a report Tuesday from WalletHub.



The Garden State has an effective real estate property tax rate of 2.47%, equating to a tax bill each year of $5,064 on a $204,900 home—the median home value in the U.S., the personal finance website said.



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WalletHub analyzed property taxes using U.S. Census Bureau data.



They divided the median real-estate tax payment by the median home price in each state and Washington, D.C., and used the resulting rates to obtain the dollar amount paid as real estate tax on a house worth $204,900, according to the report.



Hawaii had the lowest real estate tax load, with an effective rate of just 0.27%, the report said.



On the median U.S. home worth $204,900, annual taxes in the state would be $560.



Florida, a haven for buyers looking to escape high-tax areas because of its lack of state income tax, ranked in the middle of the pile at 26. The state has a property tax load of 0.93%, putting annual costs at $1,902, according to the report.



New York ranked as the ninth most expensive for real estate taxes, below states including Texas, Wisconsin and Connecticut.



A 1.71% tax rate in the Empire State leaves the typical annual tax bill at $3,497.



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“Traditionally, property taxes were not an incredibly important consideration for people deciding to move from one location to another,” said Andrew D. Appleby, law professor at Stetson University College of Law in Florida, in the report.



“There were a few exceptions to that statement for certain localities that have extremely high property taxes, notably the suburbs of New York City. After the TCJA [Tax Cuts and Jobs Act of 2017], state and local taxes generally are often now an overriding consideration in the relocation decision,” he said.

“The TCJA capped the state and local tax deduction at $10,000 per year, so taxpayers who pay large amounts of state and local tax (whether income or property taxes or both) no longer get a full federal tax deduction and may see their out-of-pocket tax liability increase by tens of thousands of dollars each year if they reside in a high-tax jurisdiction,” Mr. Appleby said.

