Key Takeaways:
Property taxes help fund essential public services and are based on the assessed value of property, not what you paid for it.
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 property tax rates.
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 down property taxes 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 property taxes 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 taxes 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 property 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 property tax 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 property tax 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.”
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
