Property Tax USA

About Property Tax USA

Property taxes in the United States are levied by local governments, primarily counties, municipalities, and school districts. Property taxes are the primary source of local government revenue, funding public schools, police, fire departments, and local infrastructure. The average effective property tax rate is approximately 1.1 percent of home value, but rates vary dramatically. New Jersey has the highest average property tax at 2.49 percent, while Hawaii has the lowest at 0.28 percent. Property taxes are based on assessed value, which may differ from market value. Assessment methods and frequency vary by jurisdiction. Property tax limitations like Californias Proposition 13, passed in 1978, cap assessment increases and have distorted housing markets and reduced public school funding.