Property tax guide
Property Taxes by State, Lowest and Highest Rates
Effective property tax rates differ nearly 8-fold by state, from Hawaii's 0.27% of home value to New Jersey's 2.11%, per the latest Census Bureau ACS data. States that fund schools mainly through property tax, rather than income or sales tax, tend to sit at the high end of that range.
According to the U.S. Census Bureau, the national average property tax bill was $1,993 across 3,152 counties in the 2020–2024 American Community Survey (latest estimates available as of January 2026). State-level rates in this guide are aggregated from that same county-level data. See our methodology.
States with the highest property tax burden
Top 12 states by effective rate (median tax ÷ median home value), ACS 2024
- NJ
New Jersey
2.11% effective rate
- IL
Illinois
2.01% effective rate
- CT
Connecticut
1.81% effective rate
- NH
New Hampshire
1.66% effective rate
- VT
Vermont
1.59% effective rate
- NY
New York
1.55% effective rate
- TX
Texas
1.49% effective rate
- NE
Nebraska
1.49% effective rate
- WI
Wisconsin
1.42% effective rate
- IA
Iowa
1.39% effective rate
- OH
Ohio
1.31% effective rate
- PA
Pennsylvania
1.3% effective rate
What this shows New Jersey leads the nation, while Hawaii sits at the bottom, a spread of more than 7×.
Why Property Taxes Differ by State
Property taxes are set locally, not at the federal level, which means every county and municipality has its own rate. But state-level policies create massive differences in the overall burden. States that rely heavily on property taxes for school funding, like New Jersey and Illinois, tend to have the highest rates. States with other major revenue sources, such as oil revenue in Alaska or tourism taxes in Hawaii, can keep property taxes low.
Assessment practices also matter. Some states assess properties at full market value, while others use a fraction. States with assessment caps, like California's Proposition 13, can keep taxes low for long-term homeowners even as home values rise, though this creates disparities between newer and older homeowners.
States with the Lowest Property Taxes
Based on Census ACS 2024 data, these five states have the lowest effective property tax rates:
| State | Effective Rate | Median Tax | Median Home Value |
|---|---|---|---|
| Hawaii | 0.27% | $2,239 | $839,100 |
| Alabama | 0.38% | $788 | $209,900 |
| Nevada | 0.47% | $2,027 | $435,400 |
| Arizona | 0.48% | $1,879 | $394,500 |
| Colorado | 0.48% | $2,602 | $539,400 |
Low property tax states often share common characteristics: alternative revenue sources (tourism, natural resources, sales tax), smaller local government budgets, or assessment caps that limit how quickly tax bills can grow. However, lower property taxes don't always mean lower overall taxes, many of these states make up the difference elsewhere.
States with the Highest Property Taxes
These five states have the highest effective property tax rates:
| State | Effective Rate | Median Tax | Median Home Value |
|---|---|---|---|
| New Jersey | 2.11% | $9,590 | $454,400 |
| Illinois | 2.01% | $5,298 | $263,300 |
| Connecticut | 1.81% | $6,643 | $366,900 |
| New Hampshire | 1.66% | $6,667 | $402,500 |
| Vermont | 1.59% | $5,039 | $316,600 |
High property tax states typically fund a larger share of public education through local property taxes. New Jersey, for example, funds one of the nation's top-ranked public school systems largely through property tax revenue. Illinois counties face a combination of school districts, park districts, and municipal taxing bodies that stack rates higher.
The Full Picture: Total Tax Burden
Property taxes are just one piece of the total tax picture. States without income taxes, like Texas, Florida, and Nevada, often have higher property tax rates to compensate. States with high income taxes, like California and New York, may have moderate property tax rates but a heavier overall burden.
When evaluating where to live or buy a home, consider the full tax picture: property taxes, state income tax, sales tax, and any local taxes. Our property tax calculator can help you estimate your specific burden in any county.
How to Use This Data
State-level averages are useful for broad comparisons, but property taxes are ultimately local. Two counties in the same state can have very different rates. For example, within a single state, effective rates can vary from under 0.5% to over 2%.
For county-level detail, browse our state pages which list every county's median tax, home value, and effective rate. You can also check our lowest tax and highest tax county rankings for the extremes.
Frequently Asked Questions
Which state has the lowest property taxes?
Based on Census ACS 2024 data, Hawaii has the lowest effective property tax rate in the country at 0.27%. Effective rates account for exemptions and assessment ratios, making them the most accurate comparison metric across states.
Which state has the highest property taxes?
New Jersey has the highest effective property tax rate at 2.11%, with median annual taxes of $9,590. High property taxes often reflect strong local school funding and municipal services.
What is the average property tax rate in the US?
The national average effective property tax rate is approximately 1.1%, though this varies enormously. Some counties pay under 0.3% while others exceed 3%. Your actual rate depends on your county, local tax levies, and any exemptions you qualify for.
Do lower property taxes mean a lower cost of living?
Not necessarily. States with low property taxes often compensate with higher income taxes, sales taxes, or fewer public services. For example, some low-property-tax states have no income tax but higher sales taxes. The total tax burden is what matters for cost-of-living comparisons.
Can property tax rates change significantly year to year?
Yes. Local governments adjust mill rates annually based on budget needs and property value reassessments. A sharp increase in home values without a rate adjustment can still raise your tax bill. Some states cap annual increases, California's Proposition 13 limits assessed value increases to 2% per year.
How do homestead exemptions affect property taxes?
Homestead exemptions reduce the taxable value of your primary residence, directly lowering your tax bill. Most states offer some form of homestead exemption, ranging from a few thousand dollars to $50,000 or more off assessed value. Some states also offer additional exemptions for seniors, veterans, and disabled homeowners.
PlainPropertyTax is rendered directly from the U.S. Census Bureau's American Community Survey (ACS) 5-year estimates, no number is typed in by an editor. This guide's state rankings and rates are computed directly from Census ACS table B25103 (Median Real Estate Taxes Paid) and B25077 (Median Home Value); effective rate = median taxes paid ÷ median home value. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of 2026-06-09.
This content is for informational purposes only and does not constitute financial advice. Property tax rates change annually. Consult your county tax assessor's office for current rates and a tax professional for advice specific to your situation.