Connecticut Lands on Top for One of the Highest Taxed States in the Country

No surprise here, we've all the loud scream of frustration that most give out after opening our municipal car tax bills, but a recent study proves that Connecticut is near the top of most expensive states to live in when it comes to real estate, vehicle, and property taxes in all of the U.S.

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Wallethub.com has just released their report on Property Taxes by State - 2024, and it shows that the average American pays $2,869 in property taxes each year. Out of the 26 states that assess a vehicle tax annually, the average tax bill is $448. Care to take a guess at what a Connecticut resident is charged in property tax on a $281,900 home? $5,647 annually. Connecticut is the third worst in all of the US in property taxes, only Illinois ($5,960) and New Jersey ($6,563) are more expensive.

As for vehicle property tax, Connecticut imposes an effective vehicle tax rate of 2.10%, which will amount to $554 on a $26,000 vehicle. Connecticut has the 8th highest among the states, with Massachusetts, Maine, Missouri, South Carolina, Mississippi, and Virginia leading the race to the worst.

The lowest real estate and property taxes? I was very surprised to see Hawaii as the state with the lowest property taxes in all of the U.S. An average tax bill on a $281,000 home in Hawaii will be taxed at a rate of 0.27%, and you will owe only $757 annually. As for mainland, Alabama is not too far behind Hawaii imposing a 0.39% property tax. If you hate car taxes, and want to stay in New England, Vermont, Rhode Island, and New York are all car-tax free.