Property Taxes Are Highest in the U.S.
Daily Real Estate News | Tuesday, July 28, 2015
In an international comparison of property taxes, the United States has the highest amount in taxes collected on properties.
The average share of total government tax collections due to real estate property taxes (recurrent taxes on immovable property) was 3.347 percent worldwide. But in the U.S. that percentage bloomed to an 11.35 percent share, according to the Organisation for Economic Cooperation and Development.
For just residential properties, the OECD found the average reporting nations worldwide was just 1.035 percent for 2011. In the U.S. that percentage was 4.64 percent of U.S. tax receipts in 2011 and property taxes for owner-occupied housing totaled just
under $200 billion.
"These estimates make clear the degree to which the U.S. relies on property tax collections more than other nations," according to the National Association of Home Builders' Eye on Housing blog. "There are many reasons for this, including the fact that U.S. property taxes are collected by state/local governments. The U.S. also has an overall lower tax burden than other nations. According to the same OECD data, taxes from all sources made up 24.4% of GDP in the U.S. compared to 33.7% average for all OECD nations."
Source: "An International Comparison of Real Estate Property Taxes ," National Association of Home Builders' Eye on Housing blog (July 21, 2015)Source: realtormag.realtor.org