WalletHub: Texas has sixth-highest property tax rate

WASHINGTON, D.C. – Texas has the sixth-highest property tax rate in the nation, according to online financial website WalletHub.

The Lone Star State’s tax rate is 1.86 percent, WalletHub says, putting it behind New Jersey (2.4 percent), Illinois (2.32 percent), New Hampshire (2.19 percent), Connecticut (2.02 percent), and Wisconsin (1.95 percent).

To rank the states, WalletHub compared U.S. Census Bureau data for the 50 states and the District of Columbia. Analysts divided the median real estate tax payment by the median home price in each state. They used the resulting rates to obtain the dollar amount paid as real estate tax on a house worth $184,700, the median value for a home in the U.S.

For a discussion on the benefits of property taxes, read Real Estate Center Research Economist Dr. Charles Gilliland’s article, "In Defense of the Property Tax."