New Jersey is the highest of all property tax collectors, with an average burden of $3,971 a year. Seven U.S. states currently don’t have an income tax: Alaska., Florida, Nevada, South Dakota, Texas, Washington and Wyoming.
Residents of New Hampshire and Tennessee are also spared from handing over an extra chunk of their paycheck on April 15, though they must pay tax on dividends and income from investments. The “Live Free or Die” state of New Hamp shire has the highest real estate and vehicle taxes with a combined average tax burden of $4,062 ($3,649 in real estate taxes with another $413 in vehicle taxes, on average) because the Granite State doesn’t have the income or sales tax.
Tennessee has started phasing out the Hall income tax. Dropped it by 1% this year with future decreases, and final elimination in 2022.
Living in NJ, I believe that one factor (among many) driving up property taxes is “home rule”, where all of your municipal services are paid from your property taxes. As I understand it, many other states spread these costs over a wider range (county or state).