2025-2026 rankings, effective rates, and median tax bills for all 50 states
Understanding property taxes by state is essential for homeowners, homebuyers, and anyone considering relocation. Property taxes are the primary funding mechanism for state and local governments across the United States. In fiscal year 2022, property taxes comprised 27.4% of total state and local tax collections, making them the single largest source of tax revenue, ahead of individual income tax revenue, sales tax revenue, and corporate income tax revenue. At the state level and below, property taxes accounted for 70.2% of all local tax collections, funding schools, roads, police departments, fire services, and other essential public services associated with property ownership.
Nationally, across the 87 million owner-occupied homes in the U.S., the average amount of property taxes paid in 2024 was $4,271, according to NAHB analysis of the 2024 American Community Survey. Median property taxes paid reached $3,500 that same year, representing a 2.8% increase from 2023. In 2024, total property taxes on single-family homes in the U.S. declined 1.6%, even as property taxes saw continued growth in many individual markets. According to the Tax Policy Center, "jurisdictions in all 50 states and the District of Columbia impose property taxes," though most property taxes are levied at the local level rather than the state level.
The average effective property tax rate nationally was $8.88 per $1,000 of home value in 2024, or approximately 0.89%. This rate is calculated by dividing aggregate real estate taxes paid ($370 billion) by the aggregate value of owner-occupied real estate ($41.7 trillion). Effective rates have steadily declined from 1.14% in 2010, not because taxes fell, but because home values rose faster than tax assessments in most markets.
Property tax rates vary enormously from state to state, and even from county to county within the same state. New Jersey has the highest effective property tax rate among states where property taxes are also combined with high home values, resulting in a median annual bill of $9,435. Meanwhile, Hawaii has the lowest effective rate at 0.27%, with a median bill of $2,358 kept lower despite the nation's highest and lowest property taxes diverging by more than seven times. These differences reflect each state's tax policies and reliance on property taxes versus other major tax categories like income and sales taxes. Property tax burdens are further influenced by local assessment practices, exemption availability, and how much your property is worth relative to others in the jurisdiction.
The table below shows property tax data for all 50 states, including effective tax rates, median home values, and median annual property taxes paid. Data is based on the 2024 American Community Survey and ATTOM Data Solutions.
| State | Effective Rate | Median Home Value | Median Tax Paid |
|---|---|---|---|
| Alabama | 0.41% | $266,900 | $1,064 |
| Alaska | 1.03% | $398,200 | $4,117 |
| Arizona | 0.42% | $453,500 | $1,918 |
| Arkansas | 0.54% | $244,200 | $1,308 |
| California | 0.77% | $788,100 | $6,071 |
| Colorado | 0.50% | $586,700 | $2,928 |
| Connecticut | 1.63% | $410,800 | $6,688 |
| Delaware | 0.49% | $377,500 | $1,852 |
| Florida | 0.80% | $421,300 | $3,353 |
| Georgia | 0.81% | $366,900 | $2,957 |
| Hawaii | 0.27% | $887,100 | $2,358 |
| Idaho | 0.43% | $453,400 | $1,942 |
| Illinois | 1.96% | $301,700 | $5,901 |
| Indiana | 0.73% | $258,100 | $1,882 |
| Iowa | 1.31% | $237,500 | $3,113 |
| Kansas | 1.23% | $270,000 | $3,329 |
| Kentucky | 0.73% | $255,500 | $1,872 |
| Louisiana | 0.58% | $250,900 | $1,451 |
| Maine | 0.91% | $365,900 | $3,318 |
| Maryland | 0.95% | $449,300 | $4,255 |
| Massachusetts | 0.99% | $617,100 | $6,089 |
| Michigan | 1.19% | $275,100 | $3,264 |
| Minnesota | 1.02% | $356,100 | $3,615 |
| Mississippi | 0.64% | $231,000 | $1,482 |
| Missouri | 0.82% | $273,900 | $2,255 |
| Montana | 0.68% | $459,000 | $3,143 |
| Nebraska | 1.43% | $276,900 | $3,966 |
| Nevada | 0.48% | $465,300 | $2,220 |
| New Hampshire | 1.44% | $478,400 | $6,909 |
| New Jersey | 1.85% | $510,900 | $9,435 |
| New Mexico | 0.68% | $316,400 | $2,153 |
| New York | 1.43% | $480,200 | $6,877 |
| North Carolina | 0.63% | $362,800 | $2,285 |
| North Dakota | 0.98% | $299,700 | $2,946 |
| Ohio | 1.23% | $256,200 | $3,156 |
| Oklahoma | 0.84% | $247,100 | $2,068 |
| Oregon | 0.77% | $520,000 | $4,023 |
| Pennsylvania | 1.18% | $301,200 | $3,569 |
| Rhode Island | 1.10% | $453,900 | $4,984 |
| South Carolina | 0.46% | $338,200 | $1,559 |
| South Dakota | 1.02% | $315,100 | $3,220 |
| Tennessee | 0.46% | $362,800 | $1,668 |
| Texas | 1.38% | $307,100 | $4,237 |
| Utah | 0.46% | $530,300 | $2,439 |
| Vermont | 1.22% | $415,300 | $5,066 |
| Virginia | 0.81% | $395,500 | $3,203 |
| Washington | 0.78% | $589,300 | $4,596 |
| West Virginia | 0.50% | $172,500 | $862 |
| Wisconsin | 1.29% | $306,800 | $3,958 |
| Wyoming | 0.52% | $355,900 | $1,850 |
Sources: 2024 American Community Survey, ATTOM Data Solutions. Effective rate = median real estate tax paid / median home value. Green = below 0.50%. Red = above 1.00%.
States with the highest effective property tax rates often rely heavily on property taxes to fund public services, particularly schools. Illinois, New Jersey, and Connecticut rank among the top due to a combination of high local government spending, fragmented municipal structures, and relatively moderate home values that concentrate the tax burden. New Hampshire and Texas have no state income tax, making property taxes the primary revenue source. States like Nebraska, Wisconsin, and Iowa fund robust school systems largely through property tax revenue.
States with low property tax rates typically have other significant revenue sources. Hawaii funds services through tourism-related taxes and a high general excise tax. Alabama and South Carolina set low assessment ratios that reduce the taxable value of homes. Colorado uses a Gallagher-style amendment that limits residential assessment rates. States like Arizona, Idaho, and Delaware also benefit from a combination of homestead exemptions and constitutional caps on property tax growth. However, low rates do not always mean low bills: Hawaii's median tax of $2,358 is still substantial because the median home value exceeds $887,000.
Effective rates tell only part of the story. High home values can push annual tax bills well above average, even in states with moderate rates. Here are the 10 states where homeowners pay the highest median annual property tax bills.
| Rank | State | Median Tax Paid | Effective Rate | Median Home Value |
|---|---|---|---|---|
| 1 | New Jersey | $9,435 | 1.85% | $510,900 |
| 2 | New Hampshire | $6,909 | 1.44% | $478,400 |
| 3 | New York | $6,877 | 1.43% | $480,200 |
| 4 | Connecticut | $6,688 | 1.63% | $410,800 |
| 5 | Massachusetts | $6,089 | 0.99% | $617,100 |
| 6 | California | $6,071 | 0.77% | $788,100 |
| 7 | Illinois | $5,901 | 1.96% | $301,700 |
| 8 | Vermont | $5,066 | 1.22% | $415,300 |
| 9 | Rhode Island | $4,984 | 1.10% | $453,900 |
| 10 | Washington | $4,596 | 0.78% | $589,300 |
Note: California and Massachusetts make this list due to extremely high home values, not high tax rates. Their effective rates (0.77% and 0.99%) are near or below the national average.
The Northeast has the highest property tax burden in the country, both in terms of effective rates and dollar amounts. New Jersey, Connecticut, New Hampshire, Vermont, New York, and Pennsylvania all exceed the national average rate.
Southern states generally have lower property tax rates, with notable exceptions. Texas (1.38%) has no income tax and relies heavily on property taxes. Alabama (0.41%) and South Carolina (0.46%) have some of the nation's lowest rates.
The Midwest is a mixed bag. Illinois leads the nation in effective rates (1.96%), while Indiana (0.73%) is among the more affordable Midwestern states. Most Midwest states fall above the national average due to heavy reliance on local school funding through property taxes.
Western states tend to have low to moderate effective tax rates, but high home values push annual bills upward. California, Washington, and Oregon all have moderate rates but produce substantial tax bills. Hawaii has the lowest effective rate in the nation.
Property taxes are calculated based on two main factors: the assessed value of the property and the local tax rate (often called the millage rate). State and local governments use various methods to determine property value, including comparable sales, cost approach, and income approach. While the concept is simple, the calculation process varies significantly between states and even between jurisdictions within the same state and county.
Your local assessor determines the assessed property value, which may differ from its fair market value. Property tax assessments can be a complex process, and the counties with the highest assessed values are not always those with the highest property taxes. Many states apply an assessment ratio that reduces the taxable amount of property. For example, South Carolina assesses owner-occupied homes at just 4% of fair market value, while other states assess at 100% of market value. Assessment ratios can range from 4% to 100% depending on the state and property type. Sometimes property tax assessments are also adjusted through equalization processes to ensure fairness across a state.
The millage rate is expressed as dollars per $1,000 of assessed value. A millage rate of 20 mills means you pay $20 for every $1,000 of assessed value. Multiple taxing authorities (county, city, school district, special districts) each set their own millage rates, and these are combined into your total property tax bill.
Before you calculate your property tax, most jurisdictions apply available exemptions that provide a reduction in property tax. Homestead exemptions reduce the assessed value of the property where the property is located as your primary residence. Senior exemptions, veteran exemptions, and disability exemptions can further reduce or freeze your taxable value. Property taxes offer these exemptions widely, but availability and the amount vary by state. You can use this list of property tax exemptions to determine what you may qualify for.
Property Tax Calculation:
Property Tax = (Assessed Value - Exemptions) x Millage Rate / 1,000
Home Market Value: $400,000
Assessment Ratio: 80% (assessed value = $320,000)
Homestead Exemption: $50,000 (taxable value = $270,000)
Total Millage Rate: 25 mills (county + city + school district)
Annual Property Tax = $270,000 x 25 / 1,000 = $6,750
Property tax exemptions can significantly reduce your annual bill. The availability of each exemption type varies by state. Here is a summary of the most common exemptions and how many states offer them.
Reduces taxable value of primary residence
Additional reduction for homeowners 65+
Reduced taxes for military veterans and disabled vets
Tax relief for homeowners with qualifying disabilities
Lower assessed value for farmland and agricultural use
Credits for solar panels, insulation, and green upgrades
Texas offers a $100,000 homestead exemption for school district taxes, plus mandatory exemptions of $10,000 for disabled homeowners and those over 65. Once you turn 65, your school district taxes are frozen.
Florida provides a $50,000 homestead exemption and the Save Our Homes provision, which caps assessed value increases at 3% per year (or CPI, whichever is lower). This can create significant savings for long-term homeowners.
California's Proposition 13 limits the tax rate to 1% of the property's purchase price and caps assessed value increases at 2% per year. This means long-time homeowners often pay far less than recent buyers with comparable homes.
New York offers the STAR (School Tax Relief) program, which provides property tax relief to eligible homeowners. The basic STAR exemption is available to all homeowners, while the Enhanced STAR exemption provides greater savings for seniors 65 and older with incomes below $98,700.
Georgia offers a standard homestead exemption of $2,000, but many counties provide additional local exemptions. Senior citizens 62 and older may qualify for exemptions on school district taxes, and those 65+ with household income under $10,000 may qualify for total exemption from school taxes.
The national average effective property tax rate has declined steadily over the past 15 years. This trend is primarily driven by rapidly appreciating home values rather than decreasing tax collections. As home values rise faster than assessment adjustments, the effective rate (taxes paid as a percentage of home value) naturally falls, even though the dollar amount homeowners pay continues to climb.
Sources: ATTOM Data Solutions, U.S. Census Bureau, Tax Foundation. Rate peaked in 2011 at 1.19% following the housing crash, then declined as home values recovered and surged.
Despite falling effective rates, total property tax revenue has risen sharply over the past decade. This is because the aggregate value of U.S. real estate has grown significantly, resulting in higher total collections even at lower percentage rates. According to Census Bureau data, total property tax revenue has increased 76% since 2010, from $442 billion to an estimated $780 billion in 2024.
Property taxes add a significant ongoing cost to homeownership that many first-time buyers underestimate. Your annual property tax payment depends heavily on where you live. For a median-priced U.S. home ($430,848 in 2025), the annual property tax payment can range from $1,766 in Alabama to $7,927 in Illinois, depending on the state. This difference of more than $6,000 per year translates to roughly $500 per month in additional housing costs. Property taxes are paid either through mortgage escrow or directly, and property taxes can increase each year as your home value rises or tax rates change.
Mortgage lenders factor property taxes into your debt-to-income (DTI) ratio when qualifying you for a loan. Higher property taxes reduce the amount you can borrow, since the lender counts taxes as part of your monthly housing obligation. In high-tax states, this can reduce your buying power by tens of thousands of dollars.
Most homeowners pay property taxes through an escrow account managed by their mortgage lender. Property taxes are assessed as a percentage of home value, and your lender collects one-twelfth of the estimated annual tax payment each month, along with your mortgage principal and interest. If taxes increase, your monthly property tax payment rises accordingly. Understanding how much your property is taxed helps you budget effectively for homeownership.
Since the Tax Cuts and Jobs Act of 2017, homeowners can deduct a maximum of $10,000 in state and local taxes (SALT) on their federal income tax return. This cap includes property taxes plus state income taxes. Homeowners in high-tax states like New Jersey, New York, and Connecticut often exceed this limit, meaning they cannot fully deduct their property taxes. This cap is set to expire after 2025, and its renewal has been a significant topic of political debate.
Property tax rates play an increasingly important role in relocation decisions, particularly for retirees and remote workers. States with no income tax but higher property tax rates (like Texas and New Hampshire) may not save as much as expected, while states with moderate income taxes and low property taxes (like Tennessee and South Carolina) can offer significant overall tax relief. According to the Tax Foundation, the combination of all state and local taxes, not just property taxes alone, should guide relocation decisions. When a property is sold, the tax burden may reset based on the new purchase price, as happens in California under Proposition 13. Understanding the effective tax rates across different states and counties helps you make informed decisions about where to buy.
If you believe your property is overassessed, file an appeal with your local assessor's office. Research comparable sales in your area that support a lower valuation. According to Realtor.com, more than 40% of homes may be overassessed, with median potential savings of $539 per year. The appeal process is typically free and can result in meaningful savings.
Many homeowners miss exemptions they qualify for. Check with your local assessor for homestead, senior, veteran, disability, and income-based exemptions. Some states, like Florida, require you to actively apply for a homestead exemption even though it is available to all primary-residence homeowners.
Assessor records sometimes contain errors such as incorrect square footage, wrong lot size, nonexistent features (like a finished basement that does not exist), or inaccurate bedroom/bathroom counts. Request a copy of your property card and verify every detail against your actual property.
Many states offer circuit-breaker programs that limit property taxes as a percentage of household income. These programs are often targeted at seniors and low-income households. Some states also offer property tax deferrals, allowing qualifying homeowners to postpone payment until the home is sold.
Some jurisdictions offer a discount (typically 1-4%) for paying your property tax bill in full by a specified date rather than through your mortgage escrow account. Check with your county tax collector to see if early payment or lump-sum discounts are available.
Major renovations like adding a pool, finishing a basement, or building an addition will increase your assessed value and property taxes. Before making improvements, consider the property tax impact alongside the potential return on investment. Not all improvements will provide a dollar-for-dollar increase in home value, but they will increase your tax bill.
Nine states have no state income tax. Many of these states compensate with higher property tax rates or sales taxes. Here is how property taxes compare in income-tax-free states.
| State | Effective Property Tax | Median Tax Paid | Sales Tax | Income Tax |
|---|---|---|---|---|
| Alaska | 1.03% | $4,117 | None | None |
| Florida | 0.80% | $3,353 | 6.0% | None |
| Nevada | 0.48% | $2,220 | 6.85% | None |
| New Hampshire | 1.44% | $6,909 | None | None |
| South Dakota | 1.02% | $3,220 | 4.5% | None |
| Tennessee | 0.46% | $1,668 | 7.0% | None |
| Texas | 1.38% | $4,237 | 6.25% | None |
| Washington | 0.78% | $4,596 | 6.5% | None |
| Wyoming | 0.52% | $1,850 | 4.0% | None |
New Hampshire and Texas stand out as income-tax-free states that compensate with significantly higher property tax rates. Florida, Tennessee, and Wyoming strike a balance with moderate property taxes and higher sales taxes. Alaska is unique in having no income tax and no state sales tax.
Illinois has the highest effective property tax rate at 1.96%, meaning homeowners pay nearly $20 per $1,000 of home value. However, New Jersey has the highest median property tax bills at $9,435 per year, due to a combination of high rates (1.85%) and above-average home values ($510,900).
Hawaii has the lowest effective property tax rate at 0.27%. Alabama (0.41%), Arizona (0.42%), and Idaho (0.43%) also rank among the lowest. West Virginia has the lowest median property tax bill at $862 per year, followed by Alabama at $1,064.
No. All 50 states and Washington, D.C. impose property taxes. While nine states have no income tax and five states have no sales tax, every state collects property taxes at the local level. Some areas within states (particularly in Alaska) have very low or no local property tax, but these are exceptions in sparsely populated regions.
Assessment frequency varies by state and jurisdiction. Some counties reassess property values annually, while others do so every 2 to 5 years. California is notable for reassessing only when a property changes ownership or undergoes new construction, with annual increases capped at 2% under Proposition 13. Check with your local assessor's office for your specific reassessment schedule.
Yes, if you itemize deductions. However, the state and local tax (SALT) deduction is capped at $10,000 per year under the Tax Cuts and Jobs Act. This cap includes property taxes plus state income taxes (or sales taxes). Homeowners in high-tax states often exceed this limit and cannot deduct the full amount. The SALT cap is currently set to expire after 2025, and its continuation is subject to ongoing legislative debate.
If you fail to pay property taxes, the local government will place a tax lien on your property. After a specified period (which varies by state, typically 1 to 3 years), the government may sell the lien to investors or initiate foreclosure proceedings to recover the unpaid taxes. In some states, the property itself may be sold at a tax sale. Interest and penalties accrue on unpaid balances, making it increasingly expensive to resolve delinquent taxes over time.
Research consistently shows that higher property taxes tend to reduce home prices, all else being equal. Buyers factor ongoing property tax costs into their purchasing decisions and may offer less for homes in high-tax jurisdictions. Conversely, the services funded by property taxes (quality schools, safe neighborhoods, good infrastructure) can increase property values, creating a complex relationship. Areas with excellent schools funded by property taxes often have higher home values despite the tax burden.
Indirectly, yes. Landlords pay property taxes on rental properties and typically pass these costs to tenants through higher rent. Property taxes on multifamily buildings are generally assessed at commercial rates, which are often higher than residential rates. Some states offer renter's credits or circuit-breaker programs that provide partial property tax relief to renters.
If you use data from this page, please cite it as:
Feel free to reference specific statistics from this page with a link back to the source.
The data in this report comes from multiple authoritative sources to ensure accuracy and comprehensiveness:
Effective tax rates are calculated by dividing median real estate taxes paid by median home value for each state. Because different sources use slightly different methodologies (median vs. average, ACS vs. property-level data), rates may vary slightly between sources. We have selected the 2024 ACS data from The Motley Fool's analysis as our primary table data, cross-referenced with ATTOM Data Solutions figures reported by Bankrate.
This page was last updated in February 2026. Data reflects the most recent available as of the publication date.
Property taxes vary dramatically, even within the same state. A local real estate agent can help you understand the tax implications of specific neighborhoods and find the best value for your budget.
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