Financial advisors tasked with managing clients' real estate jealousy about others' mansions can remind them: With great square footage comes high taxes — especially in these 10 states.
The rankings below display the 10 states with the highest effective rates for homeowners via an analysis by
Planners from, for example, the No. 1 state on the list, Illinois, often field questions from clients about the annual tax hit on their properties.
"Illinois' high property taxes are a significant concern for many clients, especially those with substantial real estate holdings," Bruce Lee, founder and CEO of Chicago- and Scottsdale, Arizona-based
Lee's firm helps clients "maintain financial flexibility and keep their long-term goals on track" by "proactively addressing property tax concerns," he added.
"We consistently monitor property valuations and tax assessments to ensure our clients pay the appropriate amount. Appealing assessments when necessary can lead to substantial savings," Lee said. "Incorporating property tax liabilities into the broader financial plan ensures that these expenses are anticipated and managed effectively, aligning with the client's overall wealth management strategy."
Federal taxes get much more attention due to their bigger burden and the
High property taxes create mixed effects on a state's homeowners, according to the Palm Paradise analysis.
"On one hand, they fund critical community services like schools and public safety, and good public services can increase the value of your home," the realty firm's report said. "On the other hand, these taxes cut into your monthly budget, especially in areas with rising home prices. Homeowners need to think about
To see the states with the highest effective property tax rates based on the mean amount collected from an average valued home, scroll down the slideshow. And see other coverage of state-level taxes:
