Key Takeaways:
- New Jersey (1.88%), Illinois (1.88%), Connecticut (1.54%), Vermont (1.51%), and New Hampshire (1.50%) have the highest property tax rates in the country.
- Hawaii (0.29%), Alabama (0.37%), Utah (0.48%), Arizona (0.48%), and South Carolina (0.49%) have the lowest rates.
- Property taxes help fund essential public services and are based on the assessed value of property, not what you paid for it.
Buying a home isn’t just about the purchase price. You’ll also need to budget for ongoing costs like property taxes, which can vary widely depending on where you live. Two homes with similar values can come with very different tax bills based on state and local rates.
Below, we break them down by state so you can compare where costs are highest and where you might pay less over time.
What are property taxes?
Property taxes are taxes homeowners pay based on the assessed value of their property. This applies to all types of real estate, including primary residences, investment properties, and commercial buildings.
Your local tax assessor calculates your property tax based on methods defined by state and local laws. If you itemize deductions, property taxes may be deductible on your federal tax return.
What do they pay for?
Property taxes are a major source of revenue for local governments. They help pay for things like schools, public transportation, fire departments, infrastructure, and other necessary public services and government expenses.
Property tax rates by state
Keep in mind that property tax rates can vary significantly within the same state. What you ultimately pay depends on your county or city’s specific rate and your home’s assessed value. The figures below show statewide averages based on the most recent data available; your actual tax bill may differ. Effective tax rates reflect 2024 data (the most recent available), while median sale prices are from February 2026 Redfin data.
State |
Effective Property Tax Rate (2024) |
Median Sale Price (February 2026) |
Estimated Annual Property Tax |
| New Jersey | 1.88% | $539,800 | $10,148 |
| Illinois | 1.88% | $298,600 | $5,614 |
| Connecticut | 1.54% | $421,900 | $6,497 |
| Vermont | 1.51% | $412,200 | $6,224 |
| New Hampshire | 1.50% | $484,000 | $7,260 |
| Nebraska | 1.44% | $300,800 | $4,332 |
| Texas | 1.40% | $333,800 | $4,673 |
| Iowa | 1.33 | $239,100 | $3,180 |
| Wisconsin | 1.32 | $322,400 | $4,256 |
| Ohio | 1.31 | $253,000 | $3,314 |
| New York | 1.30 | $597,400 | $7,766 |
| Pennsylvania | 1.26 | $293,100 | $3,693 |
| Kansas | 1.21 | $286,900 | $3,471 |
| Michigan | 1.19 | $259,900 | $3,093 |
| Rhode Island | 1.12 | $500,300 | $5,603 |
| Massachusetts | 1.00 | $597,700 | $5,977 |
| Minnesota | 1.00 | $348,100 | $3,481 |
| South Dakota | 1.00 | $327,200 | $3,272 |
| Maine | 0.98 | $372,400 | $3,650 |
| Alaska | 0.94 | $397,700 | $3,738 |
| Maryland | 0.92 | $427,000 | $3,928 |
| North Dakota | 0.92 | $319,200 | $2,937 |
| Missouri | 0.89 | $270,900 | $2,409 |
| Oregon | 0.81 | $499,500 | $4,046 |
| Georgia | 0.79 | $368,900 | $2,914 |
| Oklahoma | 0.79 | $250,000 | $1,975 |
| Florida | 0.78 | $413,200 | $3,223 |
| Virginia | 0.78 | $449,200 | $3,504 |
| Indiana | 0.76 | $261,600 | $1,988 |
| Washington | 0.75 | $625,000 | $4,688 |
| Kentucky | 0.74 | $270,200 | $1,999 |
| California | 0.70 | $820,500 | $5,744 |
| North Carolina | 0.66 | $388,400 | $2,563 |
| New Mexico | 0.63 | $373,200 | $2,351 |
| Montana | 0.61 | $538,200 | $3,283 |
| District of Columbia | 0.60 | $590,000 | $3,540 |
| Mississippi | 0.58 | $260,400 | $1,500 |
| Arkansas | 0.56 | $263,600 | $1,476 |
| Louisiana | 0.55 | $260,400 | $1,432 |
| Delaware | 0.54 | $352,000 | $1,901 |
| Wyoming | 0.53 | $414,300 | $2,196 |
| West Virginia | 0.51 | $241,000 | $1,229 |
| Colorado | 0.50 | $593,000 | $2,965 |
| Idaho | 0.50 | $478,200 | $2,391 |
| Nevada | 0.50 | $461,200 | $2,306 |
| South Carolina | 0.49 | $376,000 | $1,842 |
| Tennessee | 0.49 | $386,400 | $1,893 |
| Arizona | 0.48 | $447,100 | $2,146 |
| Utah | 0.48 | $557,700 | $2,677 |
| Alabama | 0.37 | $289,600 | $1,072 |
| Hawaii | 0.29 | $755,900 | $2,192 |
Property taxes by state FAQs
Which states have the lowest payments?
The following states have the lowest estimated property tax payments:
- Alabama ($1,072)
- West Virginia ($1,229)
- Louisiana ($1,432)
- Arkansas ($1,476)
- Mississippi ($1,500)
Which states have the highest payments?
Here are the states where you can expect to pay the most in property taxes:
- New Jersey ($10,148)
- New York ($7,766)
- New Hampshire ($7,260)
- Connecticut ($6,497)
- Vermont ($6,224)
How are property taxes calculated?
Your annual property tax payments are determined by your home’s assessed value, which may differ from the purchase price. Local assessors determine this value using market data and state-specific formulas, then apply the local tax rate to calculate your total.
Real estate tax vs. property tax: what’s the difference?
Property taxes and real estate taxes generally refer to the same thing. The IRS uses the term “real estate tax,” while local governments and counties more commonly use “property tax.”
However, some confusion may arise on the topic of personal property taxes. These apply to movable assets, like cars and boats, business equipment, and livestock, but don’t include real estate.
Do property tax exemptions exist?
Certain homeowners may qualify for property tax exemptions or reductions, depending on state and local programs. Common groups that may be eligible include:
- Veterans
- Elderly homeowners
- Homeowners with disabilities
- Low-income homeowners