As of the latest data available, New Jersey has the highest effective property tax rate in the nation at 2.23%. The median annual property tax payment is $9,541.

Yes, lenders often require you to pay property taxes, amortized, by the month. They set up a separate escrow account for this money, which pays your property taxes annually. That way, it ensures your property taxes are paid on time, without you having to scramble to raise thousands of dollars at once. It protects them and you. And, like the interest on your mortgage, they are one of many homeowner tax deductions.

The consequences of unpaid property taxes can be severe. Failure to pay can result in penalties, interest charges, and, potentially, a tax lien on your property. This could result in a tax sale, in which you lose your property. The good news is that there is plenty of help if you think you might fall behind on your property taxes. Many states offer grace periods, payment plans, or even deferrals. The important thing is to contact your local tax authority the moment you believe you might not be able to pay your taxes on time.