What are property taxes and how do they work?
Property taxes in the United States are an ad valorum tax, meaning that they are based on the value of the property. The average property tax rate in the United States is 0.93%, meaning that for every $100,000 of property value, the owner would pay $930 in property taxes. Across the 100.7 million properties in the United States with a total value of $37.2 trillion, this would amount to $347.8 billion in total property taxes collected.
Property taxes vary between states and counties, as each state and county sets its own tax rate. In addition, some states and counties offer exemptions or credits to certain types of property owners, such as seniors or veterans. Property taxes are typically used to fund local services, such as schools, roads, and public safety.
Last updated: November 01, 2023