Oklahoma homeowners are projected to pay some of the lowest lifetime property taxes in the United States, according to a new study that found the state ranks ninth nationwide for the lowest lifetime property tax burden.
The research, conducted by certified public accountants Ahad&Co CPAs, analyzed median annual property taxes, the average age of first-time homebuyers, and residents’ estimated life expectancy to calculate how much homeowners are expected to pay in property taxes over the course of homeownership.
The findings show that Oklahoma homeowners pay a median annual property tax bill of $1,593. Over an estimated 34 years of homeownership, that adds up to a lifetime property tax cost of $54,162. The total is 54% lower than the national average of $117,346 and $321,521 less than the estimated lifetime property tax burden for homeowners in New Jersey, the highest-ranking state in the study.
The report also found that Oklahoma homeowners pay significantly less in property taxes than residents of neighboring Texas. While Oklahoma’s estimated lifetime property tax bill stands at $54,162, Texas homeowners are expected to pay $158,138 over their lifetime—nearly three times as much.
At the opposite end of the rankings, New Jersey recorded the highest lifetime property tax burden in the country. Homeowners in the state pay an average annual property tax of $9,163. Based on the national median first-time homebuyer age of 38 and a life expectancy of 79 years, the average homeowner is expected to pay $375,683 in property taxes over 41 years. That figure is 220% higher than the national average.
Connecticut ranked second, with homeowners projected to pay an average of $261,908 in lifetime property taxes. The state’s average annual property tax bill is $6,388, also spread across an estimated 41 years of homeownership.
New York placed third, where homeowners are expected to pay an average of $259,325 in lifetime property taxes. The study noted that the state’s median home price is $519,500, while homeowners pay an average annual property tax of $6,325 based on a property tax rate of 1.22%.
New Hampshire ranked fourth with estimated lifetime property taxes totaling $251,400, followed by Massachusetts in fifth at $238,661. California placed sixth with an estimated lifetime property tax burden of $204,560 over 40 years.
Illinois ranked seventh, where homeowners are projected to pay $198,471 over an estimated 39 years. Vermont followed in eighth place with lifetime property taxes totaling $194,040. Rhode Island ranked ninth among the states with the highest lifetime property tax costs at $185,760, while Washington rounded out the top 10 with an estimated lifetime total of $179,120.
On the other end of the spectrum, Alabama recorded the lowest lifetime property tax burden in the nation. Homeowners there pay an average annual property tax of $786, resulting in estimated lifetime property taxes of $26,724 over 34 years. The figure is 77% lower than the national average.
According to the study, the 10 states with the highest lifetime property tax burdens are New Jersey, Connecticut, New York, New Hampshire, Massachusetts, California, Illinois, Vermont, Rhode Island, and Washington.
Commenting on the findings, Ahad Ali, CEO of Ahad&Co CPAs, said:
“Owning property is not an easy achievement, it can take years of saving and when you do own property, it’s something that should be celebrated.
“However, all too often, homeowners may forget to consider property tax when purchasing a property. For some in states particularly on the East Coast such as New York, New Jersey and Connecticut, lifetime property taxes are extraordinarily high. Without the right financial planning, this can quickly become a financial burden.
“What stands out is that property tax is often the forgotten cost of homeownership. Buyers focus on the mortgage payment, but in New Jersey, the property tax alone adds over $9,000 a year, which is the equivalent of a second significant monthly bill.
“This will be particularly pertinent for those states mentioned. From this study, we can see that homeowners in New Jersey will pay 14 times more than a homeowner in Alabama, which is an extraordinary disparity. If you’re choosing to relocate to a different state, this study will serve as a guide as to where your taxes are going to skyrocket and where you can retain some of your money.”
/cloudfront-us-east-1.images.arcpublishing.com/eluniverso/ESZCYCVTMHULRF4XLKFETXEN2U.jpg "The phrase about the origins of Argentina, Brazilians and Mexicans is critical of President Alberto Fernandez. International | News")
