Property Tax Rates by State: 2026 Rankings and Comparison

Property Tax Rates by State: 2026 Rankings and Comparison

All 50 States Ranked by Effective Property Tax Rate

The "effective tax rate" is the median property tax paid divided by the median home value. It's the best way to compare across states because it accounts for differences in assessment ratios, exemptions, and home values.

Rank	State	Effective Rate	Median Home Value	Median Annual Tax
1	New Jersey	2.23%	$401,400	$8,951
2	Illinois	2.08%	$239,100	$4,973
3	Connecticut	2.00%	$313,600	$6,272
4	New Hampshire	1.86%	$349,900	$6,508
5	Vermont	1.83%	$278,700	$5,100
6	Wisconsin	1.61%	$241,600	$3,890
7	Texas	1.60%	$272,800	$4,365
8	Nebraska	1.54%	$210,200	$3,237
9	New York	1.40%	$384,100	$5,377
10	Ohio	1.36%	$183,300	$2,493
11	Pennsylvania	1.35%	$232,800	$3,143
12	Iowa	1.29%	$184,400	$2,379
13	Kansas	1.28%	$192,900	$2,469
14	Michigan	1.25%	$201,100	$2,514
15	Rhode Island	1.20%	$361,300	$4,336
16	South Dakota	1.14%	$220,400	$2,513
17	Maine	1.09%	$270,500	$2,949
18	Minnesota	1.05%	$285,400	$2,997
19	Massachusetts	1.04%	$481,700	$5,010
20	Alaska	1.04%	$302,200	$3,143
21	North Dakota	0.99%	$224,900	$2,227
22	Indiana	0.95%	$194,500	$1,848
23	Missouri	0.93%	$207,800	$1,933
24	Maryland	0.92%	$383,600	$3,529
25	Washington	0.87%	$465,900	$4,053
26	Florida	0.86%	$321,500	$2,765
27	Oregon	0.82%	$410,200	$3,364
28	Georgia	0.81%	$256,800	$2,080
29	Virginia	0.80%	$371,600	$2,973
30	Montana	0.78%	$342,200	$2,669
31	North Carolina	0.77%	$249,500	$1,921
32	Oklahoma	0.76%	$176,500	$1,341
33	Kentucky	0.75%	$177,900	$1,334
34	New Mexico	0.72%	$239,500	$1,724
35	California	0.71%	$659,300	$4,681
36	Idaho	0.69%	$361,100	$2,491
37	Mississippi	0.67%	$140,800	$943
38	Tennessee	0.66%	$245,000	$1,617
39	Arizona	0.63%	$339,800	$2,141
40	Arkansas	0.60%	$162,400	$974
41	Nevada	0.58%	$376,100	$2,181
42	Utah	0.57%	$424,700	$2,421
43	Delaware	0.57%	$305,200	$1,740
44	Wyoming	0.56%	$282,500	$1,582
45	West Virginia	0.55%	$128,800	$708
46	South Carolina	0.53%	$218,500	$1,158
47	Colorado	0.51%	$468,700	$2,390
48	Louisiana	0.51%	$192,800	$983
49	Alabama	0.37%	$179,200	$663
50	Hawaii	0.27%	$722,500	$1,951

Note: Rates are approximate based on the most recent Census Bureau data and state tax reports. Actual rates vary significantly within each state by county, city, and school district.

Understanding Effective vs. Nominal Tax Rates

Don't confuse the effective tax rate with the mill rate or nominal tax rate listed on your bill. The nominal rate is applied to your assessed value. The effective rate is what you actually pay as a percentage of your home's market value.

Example: Ohio has nominal rates of 60-100 mills, which sounds extremely high. But Ohio assesses at 35% of market value, so the effective rate is much lower (about 1.36%).

Effective rates are the only fair way to compare across states because they account for assessment ratios and exemptions.

What Drives State-to-State Differences

Revenue Structure

States that don't have an income tax (Texas, New Hampshire, Florida, Washington, Wyoming, Nevada, Tennessee, South Dakota, Alaska) tend to rely more heavily on property taxes or sales taxes. Texas and New Hampshire have high property taxes. Florida and Nevada rely more on sales and tourism taxes.

Education Funding

States where local property taxes fund the majority of school budgets (New Jersey, Illinois, Connecticut) tend to have higher rates. States where the state government picks up a larger share of education costs (Hawaii, Vermont through state income tax) have lower local property tax rates.

Assessment Practices

Assessment caps (California, Florida, Michigan) reduce the effective rate for longtime homeowners. Frequent reassessments keep assessed values closer to market values, which tends to distribute the burden more evenly.

Exemptions and Relief Programs

Generous homestead exemptions (Texas, Florida, Louisiana) lower the effective rate for owner-occupants. States with limited exemptions (New Jersey, Connecticut) have higher effective rates.

High-Rate vs. Low-Rate: What It Means for You

Living in a high property tax state doesn't necessarily mean you pay more total tax. And living in a low property tax state doesn't mean your overall tax burden is light. The key is looking at the full picture: property tax, income tax, and sales tax combined.

Category	Examples	Overall Tax Burden
High property, no income tax	Texas, New Hampshire	Moderate to high
High property, high income tax	New Jersey, Connecticut, Illinois	High
Low property, high income tax	Hawaii, California (for long-term owners)	High for earners, low for retirees
Low property, no income tax	Wyoming, Nevada, Alaska	Low
Moderate all around	Virginia, Georgia, North Carolina	Moderate

The Cost of Living in Different Property Tax Tiers

To make these numbers real, here's what a $350,000 home costs in annual property taxes across different rate tiers:

Rate Tier	Effective Rate	Annual Tax on $350,000 Home	Monthly Impact
Very high (NJ, IL, CT)	2.0-2.2%	$7,000-$7,700	$583-$642
High (TX, NH, WI)	1.5-1.9%	$5,250-$6,650	$438-$554
Above average (PA, OH, NY)	1.3-1.4%	$4,550-$4,900	$379-$408
Average (FL, WA, MN)	0.85-1.05%	$2,975-$3,675	$248-$306
Below average (AZ, TN, NC)	0.60-0.80%	$2,100-$2,800	$175-$233
Low (CO, SC, LA)	0.50-0.55%	$1,750-$1,925	$146-$160
Very low (AL, HI)	0.27-0.37%	$945-$1,295	$79-$108

The monthly impact column shows what gets added to your escrow payment. A difference of $400 per month between a very high and a very low tax state is $4,800 per year. Over a 30-year mortgage, that's $144,000 in additional taxes.

States Where Property Taxes Are Changing

Several states have made significant changes to their property tax systems in recent years:

• Texas: Increased the school district homestead exemption to $100,000 in 2023, providing major relief for homeowners. Rate compression from state funding has also helped reduce school tax rates.
• Colorado: Adjusted residential assessment ratios downward multiple times (currently around 6.7%) to offset rapidly rising home values in markets like Denver, Boulder, and Colorado Springs.
• Idaho: Passed property tax relief measures in 2024 in response to skyrocketing home values that were driving tax bills up 20-30% per year in some areas.
• Kansas: Expanded property tax transparency requirements, making it easier for homeowners to see exactly how their bill is calculated.
• Georgia: Some counties expanded senior exemptions and floating homestead provisions to help longtime residents stay in their homes.

Keep an eye on your state legislature. Property tax reform is an active issue in many states, and new relief programs or rate changes can directly affect your bottom line.

How to Use This Data

1. Check your state's rate. Find your state in the table and note the effective rate.
2. Calculate your expected tax. Multiply your home's market value by the effective rate. This gives you a rough benchmark. Use our calculator guide for a more precise estimate.
3. Compare to your actual bill. If you're paying significantly more than the state average would suggest, you may be overassessed or missing exemptions.
4. Look at your county specifically. Rates within a state can vary 50% or more. Your county may be well above or below the state average.

Frequently Asked Questions

Why does the effective rate differ from the rate on my tax bill?

Your tax bill shows the nominal rate applied to your assessed value. The effective rate is your total tax as a percentage of market value. In states with assessment ratios below 100%, the nominal rate is higher than the effective rate. For example, Ohio's nominal rates are 6-10%, but the effective rate is about 1.36% because the assessment ratio is 35%.

Do property tax rates change every year?

Yes, rates can change annually based on local government budgets, voter-approved levies, and changes in total assessed values. However, the changes are usually modest (a few percent up or down). Major changes happen when new levies pass or when a reassessment significantly shifts total property values.

Are these rates for all property or just residential?

The effective rates shown are for residential properties. Commercial, industrial, and agricultural properties often have different assessment ratios and tax rates. Some states tax commercial property at a higher rate than residential.

How does my state compare to the national average?

The national average effective rate is about 0.90%. If your state's rate is above that, you're in a higher-than-average tax state. If below, you're in a lower-than-average state. But remember, state averages mask huge local variation.

Can I lower my rate by moving to a different county?

Yes, but you're not changing the "rate" per se. You're changing which taxing authorities cover your property. Different school districts, cities, and special districts have different mill rates. Moving across a county or school district line can significantly change your total rate. Research specific addresses before you move.

Why is California's rate so low if homes are so expensive?

Proposition 13 caps the base tax rate at 1% of assessed value and limits annual assessment increases to 2%. For long-term homeowners, the assessed value is far below market value, producing a very low effective rate. New buyers pay higher effective rates because their assessment starts at the purchase price.

Do any states have no property tax at all?

No. Every state levies property taxes. However, some individuals can qualify for full exemptions (disabled veterans, qualifying seniors, etc.) that bring their personal liability to zero. But the tax itself exists in all 50 states.

How often do state rankings change?

The rankings are relatively stable from year to year. New Jersey has been #1 for decades. Hawaii has been near the bottom for decades. Modest shifts happen when states change tax laws, exemptions, or assessment practices, but a state rarely jumps more than a few positions in a single year.

Is the effective rate different for new buyers vs. long-term owners?

In states with assessment caps like California, Florida, and Michigan, yes. New buyers pay an effective rate based on the purchase price, while long-term owners benefit from capped assessed values well below market. In California, a new buyer might pay an effective rate of 1.1% while a neighbor who bought 20 years ago pays 0.3% on the same valued home. In states without caps, the effective rate is more uniform.

What's the best state for property taxes overall?

It depends on your situation. If you only look at property taxes, Hawaii and Alabama are cheapest. But if you're a high earner, Hawaii's 11% income tax erases the property tax savings. Wyoming and Nevada combine low property taxes with no income tax. The "best" state depends on your income, home value, and what services you value. See our low-tax state analysis.