Property taxes are levied in the District of Columbia and every state. Property taxes are generally levied at the local level, either through the county, city or municipality. Many Americans pay property taxes at both the city and county level. Each state determines how they will charge property taxes and what the taxes will fund. As a result state property taxes vary greatly.
New Jersey ranks first in the amount of state property taxes paid. The average homeowner in New Jersey owns a home that is worth $334,000 and pays about $5300 a year in New Jersey property taxes. New Jersey taxes homes at 100% of the fair market value, which is unusual. Most other states tax your home at about 40% of the fair market value, which is one of the reasons that New Jersey property taxes are so much higher than most other states.