In west Lake County, it can seem that a car is almost as likely to have Illinois license plates as Indiana plates in recent years.
Many south suburban Chicago residents have been moving across the state line to Northwest Indiana, especially the Tri-Town area, in search of more home for their buck and lower taxes.
A new study by the personal finance website Wallethub has found property taxes are substantially lower in Indiana than in Illinois — often thousands of dollars lower per year. The average property taxes on a $194,000 home, which would typically be much larger in Northwest Indiana than Illinois because of lower home prices, are $1,679 in Indiana, compared to $4,476 in Illinois.
Wallethub found the average American household spends $2,279 a year on real estate property taxes. Illinois has the second highest property taxes nationally after only New Jersey, with an average $4,157 property tax bill on a median-priced home of $179,700.
Indiana ranked 23rd nationally with an average property tax bill of $1,130 on a median-priced home of $130,200. Michigan was 41st with an average annual property tax bill of $2,241 on a median-priced home of $136,000.
The Hoosier state had the lowest property taxes out of the 12 U.S. Census Bureau-designated Midwestern states, with lower property taxes than Missouri, North Dakota, Minnesota, South Dakota, Kansas, Iowa, Ohio, Michigan, Nebraska, Wisconsin and Illinois, the Wallethub study found.
The lowest property taxes nationally were in Hawaii, where the average annual property tax bill was $1,529 on a median-priced home of $563,900. The highest were in New Jersey, where the average annual property tax bill was $7,840 on a median-priced home of $321,100.