Property taxes by state: Highest and lowest rates
Quick insights
- Every state, county and municipality may have a different property tax rate and your property taxes are based on the assessed value of your home.
- State property tax rates range from 0% to 3%, with Hawaii and Alabama having the lowest effective tax rates and New Jersey and Illinois having the highest.tax-foundation-facts-figures-2024
- It’s a good idea to consider other types of taxes such as employment and sales taxes in addition to property taxes when deciding where to live.
When you buy a home, you become part of a community. That means you’ll need to pay property taxes to your state or local governments. This money is used to fund schools, emergency services, sanitation and much more.
The amount you’ll be required to pay is greatly influenced by the state, county, city and community where you live. If you’re looking to become a homeowner, but aren’t sure where to buy, knowing different states’ effective property tax rates could help you narrow down the list.
Why do property taxes vary by state?
Not only does every state have a specific property tax rate, each county and municipality within the state may have a different rate. First, each state charges a base tax rate. While the state rate will be the same across the board, different towns and counties will charge different property tax rates based on the needs and priorities of the community.
When you buy a home, your property taxes will be based on three key factors:
- Your home’s assessed value: This is the value of your property as determined by your city, state or county tax assessor. This may differ from the fair market value of your home as determined by an appraiser.
- Your state and local property tax rate: This combined annual rate is often referred to as the mill rate and is based on a percentage of your home’s assessed value. Each county, town or municipality may set their own mill rate.
- Exemptions: These may lower the amount you pay in property taxes or negate them altogether. They’re typically based on whether a house is your primary residence, second home or an investment property as well as your age, military service, income and if you’re a first-time homebuyer.
In theory, you could buy a home on one side of the county line and have a neighbor on the other with a similarly priced home. Even though your homes have the same value, you and your neighbor may have different property tax payments based on the differences in mill rates and the exemptions you qualify for.
Effective property tax rates by state
Since property taxes are dependent on the specific state, town and community you live in, it’s hard to make a general comparison. The following is a list of the effective property tax rates for every state in the U.S. This doesn’t reflect the baseline tax rate for the state. Instead, the listed rates reflect a general average property tax rate. This can be a helpful way to compare potential property tax requirements, but shouldn’t be considered the actual rate a homeowner will pay if they live in the state.
These rates were calculated using the Tax Foundation's 2024 data and dividing residential property taxes paid in each state by the total home value.tax-foundation-facts-figures-2024
| State | Effective Tax Rate |
| Alabama | 0.36% |
| Alaska | 1.07% |
| Arizona | 0.45% |
| Arkansas | 0.53% |
| California | 0.68% |
| Colorado | 0.45% |
| Connecticut | 1.78% |
| Delaware | 0.48% |
| District of Columbia | 0.57% |
| Florida | 0.71% |
| Georgia | 0.72% |
| Hawaii | 0.26% |
| Idaho | 0.47% |
| Illinois | 1.95% |
| Indiana | 0.71% |
| Iowa | 1.40% |
| Kansas | 1.26% |
| Kentucky | 0.74% |
| Louisiana | 0.51% |
| Maine | 0.96% |
| Maryland | 0.95% |
| Massachusetts | 1.04% |
| Michigan | 1.24% |
| Minnesota | 0.98% |
| Mississippi | 0.70% |
| Missouri | 0.82% |
| Montana | 0.69% |
| Nebraska | 1.44% |
| Nevada | 0.44% |
| New Hampshire | 1.61% |
| New Jersey | 2.08% |
| New Mexico | 0.67% |
| New York | 1.54% |
| North Carolina | 0.63% |
| North Dakota | 0.97% |
| Ohio | 1.30% |
| Oklahoma | 0.76% |
| Oregon | 0.77% |
| Pennsylvania | 1.26% |
| Rhode Island | 1.23% |
| South Carolina | 0.46% |
| South Dakota | 1.01% |
| Tennessee | 0.48% |
| Texas | 1.47% |
| Utah | 0.47% |
| Vermont | 1.56% |
| Virginia | 0.72% |
| Washington | 0.76% |
| West Virginia | 0.55% |
| Wisconsin | 1.38% |
| Wyoming | 0.55% |
What state has the lowest property taxes?
Now that you know how property taxes are calculated, you’re probably wondering where the property tax rates are the lowest. The following data from the U.S. Census Bureau shows the ten states with the lowest effective property tax rates along with the median real estate taxes paid in each state.tax-foundation-facts-figures-2024, american-community-survey-u.s.-census-bureau
| State | Effective Property Tax Ratetax-foundation-facts-figures-2024 | Median Annual Property Taxesamerican-community-survey-u.s.-census-bureau |
| Hawaii | 0.26% | $2,054 |
| Alabama | 0.36% | $701 |
| Nevada | 0.44% | $1,884 |
| Arizona | 0.45% | $1,786 |
| Colorado | 0.45% | $2,278 |
| South Carolina | 0.46% | $1,138 |
| Idaho | 0.47% | $1,872 |
| Utah | 0.47% | $2,241 |
| Delaware | 0.48% | $1,674 |
| Tennessee | 0.48% | $1,356 |
As you can see, just because a state has a lower property tax rate, doesn’t mean you’ll pay less in property taxes.
While Alabama has a low effective tax rate and a low median real estate price paid, Hawaii has a lower effective property tax rate but its higher-than-average property values increase the likelihood you’ll pay more in property taxes.
What U.S. state has the highest property taxes?
Most of the highest effective property tax rates are in Northeastern and Rust Belt states. However, while Texas also has relatively high effective property tax rates, the amount paid in property taxes per household is considerably lower—even though there’s only a 0.07% difference in the effective property tax rates between Texas and New York. This may be due to the lower property values across the state.
| State | Effective Property Tax Ratetax-foundation-facts-figures-2024tax-foundation-facts-figures-2024 | Median Annual Property Taxesamerican-community-survey-u.s.-census-bureauamerican-community-survey-u.s.-census-bureau |
| New Jersey | 2.08% | $9,345 |
| Illinois | 1.95% | $5,055 |
| Connecticut | 1.78% | $6,484 |
| New Hampshire | 1.61% | $6,372 |
| Vermont | 1.56% | $4,859 |
| New York | 1.54% | $6,303 |
| Texas | 1.47% | $3,872 |
| Nebraska | 1.44% | $3,167 |
| Iowa | 1.40% | $2,703 |
| Wisconsin | 1.38% | $3,670 |
In summary
Understanding how property taxes work at the state and local level can help you make an informed decision about where to buy your home. Just remember, paying more in property taxes means you may be able to enjoy a community with better funded schools, services and resources. So sometimes, paying a little more can be worthwhile.
Ready to become a homeowner? Get started on a mortgage application today. Our home lending advisors can help you navigate the homebuying process so you can buy the right home for you.
Property taxes by state: FAQs
How are property taxes paid?
While you can pay your property taxes annually, many homeowners choose to make a monthly payment into an escrow account. Set up by a lender or mortgage servicing company, the escrow service takes responsibility for paying your property taxes, typically annually or every six months.
Which state has no property tax?
While some states have 0% sales tax or no income taxes, every state in the U.S. charges some sort of property tax. However, the states where the lowest median property taxes are paid are:
- Alabama
- West Virginia
- Arkansas
- Louisiana
- South Carolina
- Mississippi
What is the most tax-friendly state to live in?
Tax-friendly and low property taxes don’t always mean the same thing. While property taxes can account for a percentage of a homeowner's annual expenses, there are other considerations, such as your state’s income tax and state and local sales taxes to consider.
Alaska and Wyoming might be considered the most tax-friendly states given that both states have no income tax and have sales taxes below 6%.tax-foundation-2024tax-foundation-2024tax-foundation-2024, tax-foundation-2022tax-foundation-2022tax-foundation-2022 However, Wyoming has an effective property tax rate of 0.55% and Alaska’s rate is 1.07%.tax-foundation-facts-figures-2024