Question: True or false? All across America, it is Illinois where property taxes are highest.
Answer: That’s false … but barely. Illinois has the second highest property taxes in the U.S., says MSN-Money. In Illinois, the "average" home's worth is $227,242 and the "average" tax bill on that is $4,845 a year. New Jersey has the highest property taxes ("average" bill: $8,477). States with low taxes: Alabama ($776 a year) and Tennessee ($981 a year).