Key Takeaways
- Expert insights on property tax by state
- Actionable strategies you can implement today
- Real examples and practical advice
Property Tax by State: Complete Comparison
Property taxes are one of the largest ongoing costs of homeownership, often rivaling or exceeding mortgage payments once loans are paid off. But tax burdens vary dramatically by state—from under $700 annually in some states to over $10,000 in others for similar homes.
This comprehensive guide compares property tax rates, average bills, and total burdens across all 50 states, helping you understand what you're paying now and what to expect if you're considering a move.
Understanding Property Tax Metrics
Key Terms Explained
Assessed value: The value your local assessor assigns to your property for tax purposes (may differ from market value)
Effective tax rate: Your actual annual tax as a percentage of [home value](/blog/appraisal-process-explained) (total tax ÷ home value)
Median tax bill: The middle value of all property tax bills in a state
Assessment ratio: The percentage of market value used for tax assessment (some states assess at 100%, others at lower percentages)
Why Rates Vary
Property tax rates differ based on:
State reliance on property taxes: States without income tax often have higher property taxes
Local government structure: More local jurisdictions = higher combined rates
School funding mechanisms: States with property-tax-funded schools tax higher
Home values: High-value states may have lower rates but higher bills
State aid to localities: States providing more aid allow lower local rates
The Complete Rankings
Top 10 Highest Property Tax States (by effective rate)
1. New Jersey
- Effective rate: 2.13%
- Median home value: $447,000
- Average annual tax: $9,520
- Notes: Highest property taxes in the nation; strong local control; excellent schools funded by property tax
2. Illinois
- Effective rate: 2.08%
- Median home value: $239,000
- Average annual tax: $4,971
- Notes: High taxes despite moderate home values; pension obligations drive rates; Cook County especially high
3. New Hampshire
- Effective rate: 1.93%
- Median home value: $337,000
- Average annual tax: $6,504
- Notes: No state income or sales tax; property tax funds most services
4. Connecticut
- Effective rate: 1.92%
- Median home value: $327,000
- Average annual tax: $6,278
- Notes: High rates in affluent areas; significant town-to-town variation
5. Vermont
- Effective rate: 1.83%
- Median home value: $272,000
- Average annual tax: $4,978
- Notes: Education funding drives high rates; rural state with high per-capita costs
6. Wisconsin
- Effective rate: 1.73%
- Median home value: $231,000
- Average annual tax: $3,996
- Notes: School levies significant; state has limited ability to raise revenue otherwise
7. Nebraska
- Effective rate: 1.65%
- Median home value: $216,000
- Average annual tax: $3,566
- Notes: Agricultural state with high property tax reliance; recent reform efforts
8. Texas
- Effective rate: 1.60%
- Median home value: $303,000
- Average annual tax: $4,848
- Notes: No state income tax; property tax funds schools; generous homestead exemptions help
9. New York
- Effective rate: 1.58%
- Median home value: $384,000
- Average annual tax: $6,067
- Notes: Downstate much higher than upstate; STAR exemption provides relief
10. Pennsylvania
- Effective rate: 1.50%
- Median home value: $225,000
- Average annual tax: $3,375
- Notes: Significant county and municipal variation; Philadelphia and Pittsburgh higher
Bottom 10 [Lowest Property Tax States](/blog/states-with-lowest-property-tax) (by effective rate)
1. Hawaii
- Effective rate: 0.31%
- Median home value: $722,000
- Average annual tax: $2,238
- Notes: Lowest rate but high home values; homeowner exemption helps
2. Alabama
- Effective rate: 0.37%
- Median home value: $179,000
- Average annual tax: $663
- Notes: Lowest actual tax bills; assessment ratio only 10% of value in some cases
3. Louisiana
- Effective rate: 0.52%
- Median home value: $198,000
- Average annual tax: $1,030
- Notes: Generous [homestead exemption](/blog/homestead-exemption-guide) ($75,000); low rates overall
4. Delaware
- Effective rate: 0.56%
- Median home value: $319,000
- Average annual tax: $1,786
- Notes: No sales tax helps offset; moderate property taxes
5. West Virginia
- Effective rate: 0.57%
- Median home value: $145,000
- Average annual tax: $827
- Notes: Low home values and low rates = very affordable property taxes
6. South Carolina
- Effective rate: 0.58%
- Median home value: $232,000
- Average annual tax: $1,346
- Notes: 4% assessment ratio for owner-occupied; generous senior exemptions
7. Arkansas
- Effective rate: 0.64%
- Median home value: $166,000
- Average annual tax: $1,062
- Notes: Homestead credit available; low overall burden
8. Mississippi
- Effective rate: 0.65%
- Median home value: $155,000
- Average annual tax: $1,008
- Notes: Low home values; senior exemptions generous
9. New Mexico
- Effective rate: 0.67%
- Median home value: $239,000
- Average annual tax: $1,601
- Notes: Moderate rates; various exemptions available
10. Wyoming
- Effective rate: 0.69%
- Median home value: $294,000
- Average annual tax: $2,029
- Notes: No state income tax; energy revenue offsets property tax needs
Complete State-by-State Data
Full 50-State Comparison Table
| Rank | State | Effective Rate | Median Home Value | Avg Annual Tax | Notes |
|---|---|---|---|---|---|
| 1 | New Jersey | 2.13% | $447,000 | $9,520 | Highest rate & bills |
| 2 | Illinois | 2.08% | $239,000 | $4,971 | High despite moderate values |
| 3 | New Hampshire | 1.93% | $337,000 | $6,504 | No income tax |
| 4 | Connecticut | 1.92% | $327,000 | $6,278 | Affluent towns highest |
| 5 | Vermont | 1.83% | $272,000 | $4,978 | Education funding |
| 6 | Wisconsin | 1.73% | $231,000 | $3,996 | School levies high |
| 7 | Nebraska | 1.65% | $216,000 | $3,566 | Reform efforts ongoing |
| 8 | Texas | 1.60% | $303,000 | $4,848 | No income tax |
| 9 | New York | 1.58% | $384,000 | $6,067 | STAR exemption helps |
| 10 | Pennsylvania | 1.50% | $225,000 | $3,375 | Wide variation |
| 11 | Rhode Island | 1.48% | $357,000 | $5,284 | Small state, high rates |
| 12 | Iowa | 1.46% | $181,000 | $2,643 | Agricultural focus |
| 13 | Ohio | 1.45% | $183,000 | $2,654 | Local control significant |
| 14 | Kansas | 1.43% | $195,000 | $2,789 | Recent reforms |
| 15 | Michigan | 1.41% | $201,000 | $2,834 | Proposal A caps increases |
| 16 | Maine | 1.33% | $244,000 | $3,245 | Rural areas higher |
| 17 | South Dakota | 1.28% | $214,000 | $2,739 | No income tax |
| 18 | Massachusetts | 1.26% | $510,000 | $6,426 | Prop 2½ limits increases |
| 19 | Alaska | 1.25% | $322,000 | $4,025 | Oil revenue helps |
| 20 | Minnesota | 1.21% | $294,000 | $3,557 | Truth in Taxation law |
| 21 | North Dakota | 1.18% | $241,000 | $2,844 | Energy revenue helps |
| 22 | Florida | 1.17% | $292,000 | $3,416 | Save Our Homes caps |
| 23 | [California](/blog/california-heloc-guide) | 1.16% | $659,000 | $7,644 | Prop 13 limits increases |
| 24 | Maryland | 1.15% | $380,000 | $4,370 | Homestead credit caps |
| 25 | Oregon | 1.14% | $438,000 | $4,993 | Measures 5 & 50 limit |
| 26 | Georgia | 1.13% | $245,000 | $2,769 | County variation high |
| 27 | North Carolina | 1.12% | $248,000 | $2,778 | Moderate overall |
| 28 | [Washington](/blog/washington-heloc-guide) | 1.11% | $504,000 | $5,594 | No income tax |
| 29 | Virginia | 1.08% | $339,000 | $3,661 | Northern VA higher |
| 30 | Missouri | 1.07% | $199,000 | $2,129 | Moderate burden |
| 31 | Indiana | 1.06% | $183,000 | $1,940 | Caps limit rates |
| 32 | Kentucky | 1.04% | $177,000 | $1,841 | Low home values |
| 33 | Oklahoma | 0.98% | $176,000 | $1,725 | Homestead exemption |
| 34 | Arizona | 0.97% | $349,000 | $3,386 | Growing state |
| 35 | Tennessee | 0.96% | $239,000 | $2,294 | No income tax |
| 36 | Montana | 0.91% | $353,000 | $3,212 | Rural, scenic |
| 37 | Idaho | 0.88% | $349,000 | $3,071 | Homestead exemption |
| 38 | Nevada | 0.84% | $407,000 | $3,419 | No income tax; gaming revenue |
| 39 | Utah | 0.79% | $408,000 | $3,223 | Moderate rates |
| 40 | Colorado | 0.76% | $465,000 | $3,534 | TABOR limits |
| 41 | Wyoming | 0.69% | $294,000 | $2,029 | Energy revenue |
| 42 | New Mexico | 0.67% | $239,000 | $1,601 | Moderate |
| 43 | Mississippi | 0.65% | $155,000 | $1,008 | Low values & rates |
| 44 | Arkansas | 0.64% | $166,000 | $1,062 | Homestead credit |
| 45 | South Carolina | 0.58% | $232,000 | $1,346 | 4% assessment ratio |
| 46 | West Virginia | 0.57% | $145,000 | $827 | Very affordable |
| 47 | Delaware | 0.56% | $319,000 | $1,786 | No sales tax |
| 48 | Louisiana | 0.52% | $198,000 | $1,030 | Homestead exemption |
| 49 | Alabama | 0.37% | $179,000 | $663 | Lowest bills |
| 50 | Hawaii | 0.31% | $722,000 | $2,238 | Lowest rate |
Regional Patterns
Northeast: Highest Tax Burden
Characteristics:
- Strong local government control
- Property tax-funded schools
- Older infrastructure requiring maintenance
- High service expectations
Top states: New Jersey, Connecticut, New Hampshire, New York, Vermont
Typical rate: 1.5-2.1%
Why so high: Limited alternative revenue sources; quality public services; fragmented government structure
South: Lowest Tax Burden
Characteristics:
- State income and sales tax reduce property tax reliance
- Lower assessment ratios
- Generous homestead exemptions
- Lower service levels in some areas
Top states: Alabama, Louisiana, Arkansas, Mississippi, South Carolina
Typical rate: 0.4-0.7%
Why so low: Multiple revenue sources; constitutional tax limitations; lower home values
Midwest: Mixed Picture
Characteristics:
- Some states very high (Illinois, Wisconsin, Nebraska)
- Others moderate (Missouri, Indiana, Kentucky)
- Agricultural property tax issues
- School funding drives rates
Typical rate: 1.0-2.0% (wide variation)
West: Moderate with Exceptions
Characteristics:
- [No income tax states](/blog/states-with-no-income-tax-investing) higher (Texas, Washington)
- States with constitutional limits lower (California, Oregon)
- Wide variation based on state revenue model
Typical rate: 0.7-1.6%
Impact of State Tax Policy
No-Income-Tax States
States without income tax often compensate with higher property or sales taxes:
Higher property tax:
- Texas (1.60%)
- New Hampshire (1.93%)
- Tennessee (0.96%)
- Washington (1.11%)
- South Dakota (1.28%)
Lower property tax despite no income tax:
- Florida (1.17%) - sales tax and tourism revenue
- Nevada (0.84%) - gaming revenue
- Wyoming (0.69%) - energy revenue
- Alaska (1.25%) - oil revenue
States with Assessment Caps
Several states limit annual assessment increases:
California (Proposition 13): Max 2% annual increase until property sells
Florida (Save Our Homes): Max 3% annual increase for homestead
Maryland: Max 10% annual increase
Nevada: Max 3% annual increase for primary residences
Impact: Long-term owners pay significantly less than newcomers; creates inequities but provides stability
States with Tax Rate Limits
Some states constitutionally limit property tax rates:
Indiana: 1% cap on primary residence taxes (with local option to exceed)
Michigan (Proposal A): Limits increases to inflation or 5%, whichever is less
Massachusetts (Proposition 2½): Limits annual increases to 2.5%
Colorado (TABOR): Voter approval required for tax increases
Hidden Factors Beyond the Rate
Assessment Practices
Effective rates don't tell the whole story:
Full-value assessment (100% of market value): Most states assess at or near 100% of market value
Fractional assessment:
- South Carolina: 4% for owner-occupied, 6% for other residential
- Louisiana: 10% for residential
- Alabama: 10% for Class II residential
This makes direct rate comparisons misleading.
Local Variation
State averages hide dramatic local differences:
New York: Nassau County (2.5%+) vs. Upstate counties (1.2%)
California: Bay Area vs. Central Valley varies despite Prop 13
Illinois: Cook County (2.3%) vs. rural counties (1.2%)
Texas: Austin (1.9%) vs. rural areas (1.2%)
Always research specific counties and cities, not just state averages.
School District Impact
In most states, school districts levy the largest portion of property tax:
Typical breakdown:
- Schools: 40-60%
- County: 20-30%
- City/town: 15-25%
- Special districts: 5-15%
High-performing school districts often mean higher property taxes but also higher home values and better long-term [appreciation](/blog/home-appreciation-explained).
Real-World Examples
Same Home, Different States
A $350,000 home in different states would pay:
| State | Effective Rate | Annual Tax | Monthly (÷12) |
|---|---|---|---|
| New Jersey | 2.13% | $7,455 | $621 |
| Illinois | 2.08% | $7,280 | $607 |
| Texas | 1.60% | $5,600 | $467 |
| Pennsylvania | 1.50% | $5,250 | $438 |
| Florida | 1.17% | $4,095 | $341 |
| California | 1.16% | $4,060 | $338 |
| Colorado | 0.76% | $2,660 | $222 |
| South Carolina | 0.58% | $2,030 | $169 |
| Hawaii | 0.31% | $1,085 | $90 |
Range: $1,085 to $7,455 annually - a difference of $6,370/year or $531/month
Lifetime Cost Difference
Over 30 years, property tax differences compound dramatically:
$350,000 home, 30 years, 3% annual assessment growth:
- Hawaii (0.31%): $51,000 total taxes
- South Carolina (0.58%): $95,000 total taxes
- Florida (1.17%): $192,000 total taxes
- Texas (1.60%): $263,000 total taxes
- New Jersey (2.13%): $350,000 total taxes
Lifetime difference: $299,000 (Hawaii vs. New Jersey)
Making Tax-Smart Location Decisions
Beyond Just the Rate
Consider the total picture:
Housing costs: Low property tax + high home prices may cost more than high property tax + low home prices
Example:
- California: $700,000 home × 1.16% = $8,120/year
- Illinois: $250,000 home × 2.08% = $5,200/year
California's lower rate produces higher taxes due to home values.
Income tax offset: High property tax states often have lower income taxes or vice versa
Quality of services: Higher taxes often fund better schools, roads, police, parks, libraries
Calculate Total Tax Burden
Compare combined state and local taxes:
High property tax, low income tax:
- New Hampshire, Texas, Florida
Moderate property tax, high income tax:
- California, Oregon, Minnesota
High everything:
- New York, Connecticut, New Jersey (but also high incomes and services)
Low everything:
- Wyoming, South Dakota, Alabama
Use Online Calculators
Many websites calculate total tax burden by state:
- Tax Foundation
- SmartAsset
- Bankrate
- Kiplinger
Input your income, home value, and spending to see personalized comparisons.
Strategies to Minimize Property Taxes
Regardless of State
Apply for all exemptions: Homestead, senior, veteran, disability
Appeal over-assessments: Review your assessment annually
Monitor assessment practices: Ensure accuracy in property records
Understand timing: New purchases often trigger reassessment
Consider location within state: Rates vary dramatically within states
State-Specific Strategies
California: Buy and hold long-term to maximize Prop 13 benefit
Florida: Establish homestead and maintain Save Our Homes cap
Texas: Apply for all exemptions; consider 65+ freeze
New Jersey: Appeal assessments in declining markets; use senior/veteran exemptions
Illinois: Apply for homestead; consider senior freeze
Future Trends
Increasing Tax Burdens
Factors driving property taxes higher:
Pension obligations: Especially in Illinois, New Jersey, Connecticut
Infrastructure needs: Aging systems require investment
School funding: Rising costs with declining enrollment in some areas
Climate adaptation: Flood control, fire prevention, resilience
Reform Movements
Several states considering or implementing reforms:
Circuit breaker programs: Income-based relief expanding
Assessment caps: More states considering Florida/California models
Homestead expansion: Broader or larger exemptions
Transparency: Better disclosure of tax impact before levies pass
The Bottom Line
Property taxes vary by a factor of 7x between highest and lowest states. For the same $350,000 home, you'd pay $1,085/year in Hawaii but $7,455/year in New Jersey.
Key takeaways:
- Don't just look at rates - Consider home values and total bills
- Research locally - State averages hide dramatic variation
- Factor in exemptions - Homestead and other exemptions significantly impact your actual bill
- Consider total tax burden - Property tax is just one piece
- Balance cost with services - Higher taxes often fund better schools and services
- Appeal when warranted - Don't overpay; know your rights
Property taxes are a permanent [cost of homeownership](/blog/rent-vs-buy-calculator-guide). Understanding the landscape helps you make informed decisions about where to buy, when to appeal, and how to minimize your burden while maximizing the value you receive from public services your taxes fund.
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