CHICAGO (AP) — Illinois residents shell out some of the steepest property taxes in the country. A WalletHub report released during tax season ranks the state second-highest nationally, with an effective rate of 2.01% on the typical U.S. home. That translates to $6,694 annually on a $332,700 property, the national median value used in the study.

Iowa isn’t far behind. It lands at No. 10 with a 1.39% rate, equaling $4,634 on the same national benchmark home. But local realities shift the picture. Iowa’s median home price stands at $208,000 — 46% below the U.S. average — dropping the typical annual tax bill there to $2,897, the report states.

Illinois median homes fetch $263,300. Owners pay $5,298 yearly in property taxes at that level. The state offers a break on vehicle taxes, unlike Iowa, where a 1% rate adds $291 annually on a $29,000 car.

Residents along the Illinois-Iowa border often debate the cost of living on either side. The numbers tilt toward Iowa as the lighter financial load, especially after adjusting for actual home values. WalletHub crunched data on real estate tax rates, state median home costs and national comparisons to build its rankings.

Taxes vary wildly by state. Nevada claims the lowest rate at 0.47%, but sky-high home prices erase the savings. The state’s median home costs $435,400 — more than $100,000 above the national figure. Annual taxes there hit just $2,027 on the U.S. median home, though mortgage payments balloon on local properties.

Alabama ranks second-lowest overall. Its 0.38% rate pairs with a $209,900 median home price, yielding only $788 in yearly taxes — a rare combo of low rate and affordable housing, according to the analysis.

Hawaii tops the list for lowest rate at 0.27%, or $888 on the national median home. Reality bites, though. Median homes there sell for $839,100, more than double the U.S. average, pushing annual taxes to $2,239 despite the tiny percentage.

The study highlights how raw rates don’t tell the full story. Homeowners must weigh local prices alongside taxes. Illinois and Iowa both burden owners with high effective costs, even as Midwest home values lag national trends. Officials in both states have fielded complaints for years about property tax hikes funding schools and local services.

WalletHub, a financial research firm, based its findings on the latest available data from sources including the U.S. Census Bureau and Tax Foundation. The report arrives as Americans file 2023 returns, with property taxes deducted on many federal forms. For border dwellers, the gap highlights everyday choices: Illinois convenience versus Iowa savings.

No quick fixes loom. Illinois lawmakers debate property tax relief packages, but progress stalls. Iowa caps annual increases at 3% for most owners. Still, both states draw new residents chasing jobs in Chicago or Des Moines, undeterred by the bills.