At the Wisconsin Taxpayers Alliance, we provide a lot of information to allow residents to make in-state property tax comparisons, whether it’s by school district, county, or municipality (www.wistax.org/facts).
National comparisons are much harder to make. However, recently published figures from the Tax Foundation allow a glimpse at how the Badger State fares nationally.
The report shows Wisconsin has some of the highest residential property taxes in the country.
The Tax Foundation study uses 2005-09 Census Bureau figures on property taxes paid on owner-occupied housing. Data for 2,922 counties nationwide were ranked based on median property taxes paid and taxes paid as a percent of median household income.
Seven of Wisconsin’s 71 counties (Menominee was excluded) were among the top 100 in terms of property taxes paid: Dane (51st, $4,038), Ozaukee (59th, $3,948), Waukesha (63rd, $3,899), Milwaukee (82nd, $3,578), Pierce (93rd, $3,440), Washington (95th, $3,429), and Kenosha (96th, $3,427). Wisconsin’s lowest-ranked county was Iron at 745th ($1,442), a ranking which was just outside the top 25% of all counties.
The highest property taxes were in New York and New Jersey—the top 14 counties were from one of those two states, as were 21 of the top 25. Median property taxes were above $5,100 in each of the top 25 counties, with taxes topping $8,200 in Hunterdon County, New Jersey. The lowest property taxes were in Alaska and Louisiana at less than $150. In Louisiana, the first $75,000 of a home’s value is shielded from property taxes. And, effective tax rates on residential properties there are less than rates for commercial or other property types.
One can also look at property taxes relative to income. Wisconsin’s property tax rankings look worse when examined this way because Badger State incomes are relatively modest. Nine Wisconsin counties were among the top 100, with Milwaukeee (ranking 35th, consuming 5.75% of income) and Kenosha (61st, 5.00%) leading the way. The state’s lowest-rated county (Marinette, 372nd, 3.32%) was among the highest 13% nationwide.
There are many factors that affect local property taxes and these national rankings. Some states use the property tax more than others, while some allow local governments to collect other taxes to offset the property tax. In addition, some states exempt a percentage of residential property value from the property tax, or tax it at a lower rate than other property types
In Wisconsin, the property tax is a major revenue source for local governments, and the only other major tax allowed is the county sales tax. Further, Wisconsin’s constitution requires residential property to be taxed the same as all other property types (Article VIII, Section 1).
