What State Has the Highest Property Tax 2021? Plus Other Tax-Related Questions Answered

When deciding where to live, taxes are a major factor for many individuals. Particularly for homeowners, property taxes can be a major burden. Which state will have the highest real estate tax in 2021? According to a recent WalletHub survey, New Jersey holds the dubious distinction.

With an effective property tax rate of 2.49%, New Jersey has the highest rate in the nation. Accordingly, the state’s typical homeowner spends $6,579 in property taxes annually. Illinois, Texas, Vermont, and Connecticut are among additional states with high property taxes.

But there are other taxes that people should take into account besides property taxes. Is alcohol taxable, for instance, in Vermont? Yes, it is the answer. All retail sales of alcohol, spirits, and fortified wines are subject to a 10% tax in Vermont. The state’s usual 6% sales tax is in addition to this tax.

Therefore, is there a sales tax on automobiles in Vermont? It does, indeed. All motor vehicles, including cars, trucks, and motorbikes, are subject to a 6% sales tax in Vermont. The cost of the car at the time of purchase determines this tax.

Does Vermont tax toilet paper as well? Not at all, no. Groceries and other non-prepared food items are not subject to sales tax in Vermont. Therefore, even though your drink and vehicle will be subject to taxes, at least toilet paper won’t be an additional cost.

Is it preferable to reside in a state where there is no income tax? It depends on the specifics of your situation. States without an income tax may be appealing to some, but they frequently make up for it with higher sales or property taxes. Additionally, jurisdictions without an income tax may charge more for certain services, like vehicle registration, or provide fewer public services overall. In the end, the greatest state to live in is the one that provides you and your family with the ideal balance of taxes, services, and quality of life.