New Mexico ranks low for property tax

New Mexico ranks low for property tax

Property taxes are a big consideration when it comes to buying a home. The average family spends $2,127 on property taxes each year, according to the U.S. Census Bureau, though that price tag goes up or down depending on what state you live in.

While property taxes are not the only factor that determines whether someone decides to live in a certain state, it can play a role in housing affordability.

Take Texas, for example. While the state doesn't charge personal income tax, it does have higher property taxes than other states. A homeowner there pays about $2,537 annually in property taxes for the average house, according to a new ranking by WalletHub. That make the Lone Star State the fifth highest state for property taxes.

New Mexico's property taxes, on the other hand, fare pretty low. With an average home value of $159,300, the average homeowner pays $1,154 in property taxes, making it the 12th lowest state for property tax costs.

To come up with the rankings, WalletHub listed the price of property taxes in each state when living in a house worth $175,700, which is the median value of a home in the U.S. according to the Census Bureau.

New Jersey has the highest property taxes in the nation, with residents paying more than $7,000 per year on an average home there.

Hawaii was ranked the lowest place for property taxes. Even though the average Hawaii resident's property tax is pretty high at $1,405, it ranked low because the average home there is worth $504,500.

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