New York ranks among the states with the highest property taxes in the nation, according to WalletHub’s newly released 2025 Property Taxes by State report. The Empire State placed 46th in real-estate property tax burden, with homeowners paying an estimated $6,450 in taxes on a median-priced home. However, New York was ranked first for vehicle property taxes, meaning residents pay nothing on the best-selling car in the state.
The report found that, on average, American households pay $2,969 annually in real-estate property taxes, with an additional $492 for vehicle property taxes in the 26 states that impose them. New York’s real-estate tax burden significantly exceeds the national average, especially when calculated based on the median home value.
“Some states charge no property taxes at all, while others charge an arm and a leg,” said Chip Lupo, a WalletHub analyst. “Americans who are considering moving and want to maximize the amount of money they take home should take into account property tax rates, in addition to other financial factors like the overall cost of living.”
While high property taxes can deter homebuyers, experts disagree on the extent to which buyers factor them into their decisions. Dr. Stephen Martin, a clinical assistant professor at the University of Florida, noted that buyers typically pay attention to tax rates in areas where they are particularly high or low. “For many buyers, I do not think taxes are considered enough, even though they often have a significant impact on the owner’s payment,” he said.
Some experts argue that property tax relief should be considered for certain groups, such as elderly homeowners who live on fixed incomes and may struggle to afford rising tax bills. “Allowing elderly people to pay a lower rate would certainly benefit that class of people,” said Mallory Meehan, an associate professor at Penn State University.
The WalletHub report highlights ongoing debates over tax fairness, exemptions, and the overall burden on residents. With New York consistently ranking among the most expensive states for homeownership, property taxes remain a major consideration for both current residents and prospective buyers.
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