STATE RANKINGS: Michigan’s Property Taxes Among Nations Highest

Find the home of your dreams, settle down, and raise a family with a great yard and a white picket fence. Every fairy tale needs a villain, and the American Dream has property tax. Some states big evils are larger than others, so let's take a look at how Michigan's above-average property taxes stack up against the rest of the United States.

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Michigan's effective real estate tax rate is 1.35%, and WalletHub estimates the state median home value to be $201,100. That adds up to $2,708 in property taxes, but how does that compare with the rest of the United States?

Comparing Michigan's Property Tax Rate to the Rest of the United States

WalletHub recently crunched the data, and the state with the lowest real estate tax rate is Hawaii. Like Michigan, it has unique features and beaches that can only be seen in one place. Unlike Michigan, it has volcanoes, saltwater surroundings, and a 0.27% property tax rate.

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It sounds like Hawaii is a bargain, right? Wrong. The average median home value is a whopping $764,800, which translates to $2,054 annually. Hawaii has savings compared to Michigan but also has volcanoes, earthquakes, and tsunamis.

As for the other end of the spectrum, New Jersey took the title for the state with the highest tax rate, at 2.33%. If the average median home value were in line with Michigan's, it would still be a painful price hike, but the average taxable home value in New Jersey is $401,400, making the annual property tax a paltry $9,345.

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Remember that these aren't the only property taxes residents of these states pay. As in Michigan, every state's cities, counties, and other municipalities may also take a slice of your property tax pie. Be sure to check with each to ensure you're current.