According to an analysis of the latest Census Bureau data by the Tax Foundation, New Jersey's effective tax rate of 2.23 per cent is the highest of all 50 states and the District of Columbia; Hawaii is the state with the lowest tax rate, with an effective rate of 0.32 per cent.

For a home valued at $416,100, a New Jersey homeowner would pay $9,279 in property taxes. In Hawaii, on the other hand, the same home would pay only $1,332 in taxes.

The median effective property tax for all states and the District of Columbia is 0.91%. Only New Jersey and Illinois have property taxes higher than 2%.

Here are the ten states with the highest property taxes:

New Jersey: 2.23 percent

Illinois: 2.08 percent

New Hampshire: 1.93 percent

Vermont: 1.83 percent

Connecticut: 1.79 percent

Texas: 1.68 percent

Nebraska: 1.63 percent

WI: 1.61 percent

Ohio: 1.59 percent

Iowa: 1.52 percent

Here are the ten states with the lowest property taxes:

Hawaii: 0.32 percent

Alabama: 0.4 percent

Colorado: 0.55 percent

Louisiana: 0.56 percent

Wyoming: 0.56 percent

South Carolina: 0.57 per cent

Utah: 0.57 percent

Va: 0.57 percent

Nevada: 0.59 percent

Delaware: 0.61 percent

It is noted that in New Jersey, local governments place great emphasis on controlling public services, especially education. Their education costs are among the highest in the nation, and most of it is paid for through property taxes.

In contrast, Hawaii's government is more centralised at the state level and relies more on tourism than property taxes to pay for government services. As a result, property taxes here are among the lowest in the nation.

However, even with low property taxes, Hawaii is still the most expensive state to buy a home, according to a recent LendingTree study.

It's worth noting that neither New Hampshire nor Texas has an income tax, and they rely more on property taxes to pay for a larger share of government services.