Most expensive property taxes by state: 2025 ranked guide

Last updated 2026-07-09

Which state has the highest property taxes?

New Jersey holds the top spot, and it isn't close. The Tax Foundation reports an average effective property tax rate of 2.23% in New Jersey, which on a median-valued home works out to a median annual bill near $9,476 ^[1]. That number comes from the Census Bureau's American Community Survey five-year estimates, the most reliable national comparison we have because it measures taxes people actually paid, not the statutory rate printed on the books ^[2].

Illinois is second at about 2.08%, driven almost entirely by Cook County (Chicago) and its suburbs, where school district levies stack on top of each other and push effective rates past 3% in some townships ^[3]. Connecticut sits third at around 1.79%, then New Hampshire (1.77%) and Vermont (1.71%).

The pattern is clean. The Northeast and Midwest own the expensive end. The Sun Belt and South own the cheap end.

State averages hide huge county-to-county swings, though. And that variation is exactly where a homeowner has a real shot at saving money through an appeal.

What are the most expensive property tax states, ranked?

The table below ranks all 50 states by effective property tax rate (taxes paid divided by median home value). Figures come from the Tax Foundation's 2024 analysis of Census Bureau ACS data ^[1][2]. The median annual bill uses each state's median owner-occupied home value from the same source.

Rank	State	Effective Rate	Median Annual Bill
1	New Jersey	2.23%	$9,476
2	Illinois	2.08%	$5,048
3	Connecticut	1.79%	$6,484
4	New Hampshire	1.77%	$6,036
5	Vermont	1.71%	$4,340
6	Wisconsin	1.61%	$3,472
7	Texas	1.60%	$3,872
8	Nebraska	1.57%	$3,060
9	Michigan	1.54%	$2,887
10	Pennsylvania	1.49%	$3,442
11	Ohio	1.48%	$2,636
12	Iowa	1.46%	$2,535
13	Kansas	1.39%	$2,445
14	New York	1.38%	$6,012
15	Rhode Island	1.30%	$4,686
16	Maine	1.28%	$3,186
17	Minnesota	1.12%	$3,094
18	Maryland	1.09%	$4,090
19	Oregon	0.97%	$4,498
20	Missouri	0.97%	$1,731
21	Massachusetts	0.97%	$5,409
22	North Dakota	0.96%	$2,158
23	South Dakota	0.95%	$2,285
24	Montana	0.84%	$2,927
25	Florida	0.83%	$2,338
26	Indiana	0.83%	$1,593
27	Georgia	0.83%	$2,094
28	Virginia	0.82%	$3,430
29	North Carolina	0.80%	$1,990
30	Alaska	0.79%	$3,731
31	Mississippi	0.79%	$1,143
32	Kentucky	0.78%	$1,569
33	Idaho	0.76%	$2,580
34	California	0.75%	$4,996
35	Oklahoma	0.74%	$1,234
36	Washington	0.72%	$4,178
37	Tennessee	0.71%	$1,700
38	Arizona	0.62%	$1,648
39	Arkansas	0.62%	$878
40	West Virginia	0.59%	$809
41	South Carolina	0.57%	$1,322
42	Utah	0.56%	$2,422
43	Nevada	0.55%	$2,166
44	New Mexico	0.55%	$1,333
45	Wyoming	0.55%	$1,677
46	Delaware	0.55%	$1,579
47	Louisiana	0.54%	$1,065
48	Colorado	0.51%	$2,017
49	Alabama	0.41%	$776
50	Hawaii	0.32%	$1,971

One caveat on these numbers. Effective rates shift every year as home values move and local budgets grow. The rankings above reflect the most recent Tax Foundation release, which lags real time by about 18 months because of the ACS publication schedule. For fresher state-specific figures, see our property tax by state 2025 breakdown.

Texas earns a footnote. Its 1.60% effective rate looks like Wisconsin's on paper, but Texas has no state income tax, so local governments lean hard on property taxes to fund schools. Some counties in the Dallas-Fort Worth suburbs run effective rates above 2.5%. More on that in how to appeal property taxes in Texas.

Why is New Jersey property tax so high?

Three forces converged. New Jersey has no county income tax to offset school funding, it splits into 564 separate municipalities each running its own government, and home values in the New York commuter belt are among the highest in the country. Property taxes end up doing the heavy lifting that shared state revenue handles elsewhere ^[4].

The New Jersey Division of Taxation reports that local school levies alone account for roughly 60% of the average property tax bill in the state ^[4]. Add county government and municipal services on top, and you clear $9,000 before a single state-level charge lands.

If you own in New Jersey and your assessment looks even a little off, run the appeal. New Jersey Tax Court records show residential appellants who take a case to judgment (rather than settling at the county board) win meaningful reductions in a real share of contested cases, though clean success-rate data varies by county and year. Watch the April 1 deadline for most residential parcels ^[4]. Our how to appeal property taxes in New Jersey guide covers the full process step by step.

Why does Texas have such high property taxes despite no income tax?

Texas pays for its schools through local district property taxes, and that is the whole story. The Texas Comptroller reports that school districts make up the majority of most residential property tax bills in the state ^[5]. No state income tax, a legislature that has repeatedly walked away from a state-funded education model, and local districts left to set their own rates. Those rates climb.

A homeowner in a high-spending suburban district, say Frisco ISD in Collin County, can face a combined rate (school plus county plus city) above 2.0%. Texas law caps assessed value increases at 10% per year for homesteaded property under Tax Code Section 23.23, which softens the blow but doesn't stop the compounding ^[5].

The Texas protest deadline is May 15 or 30 days after the notice of appraised value is mailed, whichever is later. Miss it and you lose a full year. Texas homeowners and businesses filed roughly 3.5 million property tax protests in 2023, more than any other state ^[5].

Does a high state rate mean you're definitely overpaying?

No. A high effective rate on an accurate assessment is fair taxation, as much as that stings. The real problem is a wrong assessment, and those turn up in every state, including the cheap ones.

Assessments go wrong for a handful of reasons. Mass appraisal models, which every county uses to value thousands of properties at once, make parcel-level errors even when they look fine in aggregate. Assessors calibrate accuracy with sales ratios, aiming for a median assessment ratio between 90% and 110% of market value ^[6]. If your property lands above 110%, you're almost certainly overpaying.

The International Association of Assessing Officers sets the standard for acceptable uniformity. Its 2020 Standard on Ratio Studies holds that a coefficient of dispersion below 15% is acceptable for residential property in most markets ^[6]. Plenty of urban counties blow past that, which means some homeowners carry a heavier load than their neighbors for identical homes.

So the question isn't just which state charges the most. It's whether your assessment reflects what your house would actually sell for today. That's the number you can fight.

How do property tax assessments work, and why do bills differ within the same state?

A property tax bill has two moving parts: the assessed value of your home and the local tax rate (the mill rate or levy rate). Multiply one by the other and you get your bill. Both parts change by jurisdiction, which is why a homeowner in Chicago can pay three times what a downstate Illinois homeowner pays in the same state.

Assessed value comes from your county (or in some states, town or city) assessor, usually through mass appraisal software that models market value and then applies an assessment ratio. Some states assess at 100% of market value. Others use ratios like 50% or 30%. The ratio itself doesn't change your bill, because the mill rate is set to match, but it confuses people into thinking their assessment is lower than it really is.

The mill rate, set each year through the local budget process, fixes how much tax gets collected per $1,000 of assessed value. A mill rate of 20 means $20 per $1,000, so a home assessed at $400,000 owes $8,000. School districts, counties, cities, and special districts all set their own levies. They stack.

That layered structure is why property tax percentage by state averages tell only part of the story. See our states ranked by property tax page for county-level detail.

What's the cheapest state for property taxes?

Hawaii has the lowest effective rate in the country at about 0.32% ^[1]. That shocks people, because Hawaii real estate is famously expensive. The rate stays low partly because Hawaii assesses owner-occupied residential property at a steep discount compared to investment property, and the state funds a big share of education centrally instead of through local levies.

Alabama (0.41%) and Colorado (0.51%) round out the cheapest three. Alabama's rates reflect both low home values and a constitutional framework that has long held down assessment increases. Colorado ran on the Gallagher Amendment framework (repealed by Proposition 116 in 2020), then Proposition HH in 2023, which adjusted the residential assessment rate. Colorado's rules keep changing ^[7].

Cheap property taxes aren't automatically the better deal, though. Hawaii's low property tax comes paired with high income and sales taxes. The tradeoffs are real. For a full look at where property tax approaches zero for qualifying owners, see our states with no property tax page.

How do effective rates compare to nominal rates, and which one matters?

Nominal rates are what's printed on the statute books or the county's rate card. Effective rates are what you actually pay as a share of your home's market value. They split apart because assessment ratios, exemptions, and abatements all shrink the taxable base.

For comparing your burden to a neighbor's or to national data, the effective rate is the right number. For appealing your assessment, the nominal rate barely matters. What you're disputing is the assessed value, not the rate.

Here's the math that counts. Say your home is worth $300,000, the county assesses it at $360,000, and the nominal rate is 1.5%. You pay $5,400 instead of $4,500. That $900 overcharge repeats every year until the next reassessment. A winning appeal corrects the assessed value and hands you that savings again and again, more than once.

That's why homeowners in low-rate states should still check their assessments. A 0.75% effective rate (roughly California) applied to a $200,000 overassessment burns $1,500 a year for nothing.

Can you appeal your property taxes if you live in a high-tax state?

Yes, and in high-tax states the dollar savings from a win are proportionally bigger. A 10% cut in assessed value in New Jersey saves about $950 a year on a median home. The same 10% cut in Alabama saves about $78.

Every state has a formal appeal process. The structure is roughly the same everywhere. File a written appeal with your county assessor or local board of review by the annual deadline. Present evidence that your assessed value tops market value or that comparable homes carry lower assessments. Get a decision. Lose at the local level and most states give you a second tier, a state tax court or tribunal.

The evidence is the hard part. You need recent sales of comparable homes (comps), and ideally a current appraisal or a sales ratio study showing your property sits above its neighbors. The TaxFightBack DIY appeal kit walks through how to pull and format that evidence without handing a contingency firm 30% to 50% of your savings.

Deadlines are strict and state-specific. New York's Grievance Day is the fourth Tuesday in May for most jurisdictions ^[8]. Cook County, Illinois runs windows tied to each township's reassessment cycle ^[3]. Texas is typically May 15 ^[5]. Miss your window and you wait a year. Our state guides break down each one: New York, Illinois, Florida, and Georgia.

Do exemptions change which states are actually most expensive for your situation?

Dramatically. Raw effective rates ignore exemptions, and exemptions can flip the rankings for a specific homeowner.

Homestead exemptions cut the taxable value of a primary residence. Florida's removes the first $25,000 of assessed value from all taxes and another $25,000 from non-school levies ^[9]. On a $200,000 home that's a real reduction. Florida also caps annual assessment increases on homesteaded property at 3% or the change in CPI, whichever is lower, under the Save Our Homes provision in Article VII, Section 4 of the Florida Constitution ^[9].

Texas exempts $100,000 of a home's appraised value from school district taxes for owner-occupied homesteads under Tax Code Section 11.13(b), raised from $40,000 by legislation in 2023 ^[5]. New Jersey runs the ANCHOR benefit (Affordable New Jersey Communities for Homeowners and Renters), a rebate up to $1,500 for qualifying homeowners that chips away at the nation's highest rates ^[4].

Seniors, veterans, and disabled homeowners often qualify for extra exemptions that never show up in state averages. The gap between the average bill and what a 65-year-old veteran actually pays in Alabama can be enormous. Before you decide you're stuck, check every exemption your jurisdiction offers. Your county assessor's website is the place to start.

What about personal property taxes and car taxes by state?

Real property taxes on your home are what most people mean by property taxes. But about half of U.S. states also tax personal property every year: vehicles, boats, RVs, and in some states business equipment. Virginia requires localities to assess personal property taxes on vehicles annually. Connecticut runs a motor vehicle property tax separate from real estate taxes.

These levies don't appear in state effective-rate comparisons because they sit on different bases and hit different people depending on what they own. For a full look at how states treat vehicles, see our car property tax by state guide and our personal property tax by state overview.

Comparing total tax burden across states means adding real property tax, personal property tax, income tax, and sales tax together. States that look cheap on one line often make it back on another. Washington has no income tax, but its property and sales taxes both run above the national average.

How do high-tax states justify their rates, and is the spending visible?

Here's where honest analysis gets messy. High property taxes in New Jersey, Connecticut, and New Hampshire do line up with well-funded schools. The National Education Association ranks New Jersey first in per-pupil spending at more than $22,000 per student a year in recent surveys, roughly 60% above the national average ^[10]. Whether that money buys proportionally better outcomes is a separate fight with a genuinely mixed research record.

The case for high property taxes is local control: your taxes fund your schools and your roads, not someone else's. The case against is regressivity. A retired homeowner on a fixed income in a pricey suburb can face a bill that eats a large chunk of annual income even though the home's value has run far past anything they need.

Many states try to fix this with circuit-breaker programs that cap property taxes as a share of household income. Massachusetts offers an income-based property tax credit for elderly homeowners under M.G.L. Chapter 59, Section 5, Clause 41C ^[11]. Michigan's Homestead Property Tax Credit kicks in when taxes exceed a set percentage of household income ^[12]. These programs exist precisely because effective rates alone don't show who's actually carrying the most weight.

Frequently asked questions

What state has the highest property taxes in 2025?

New Jersey has the highest effective property tax rate in the country at roughly 2.23% of home value, producing a median annual bill near $9,476. Illinois is second at about 2.08%, and Connecticut third at around 1.79%. These figures come from the Tax Foundation's analysis of Census Bureau American Community Survey data and update as new ACS releases come out.

Which states have the lowest property taxes?

Hawaii has the lowest effective rate at about 0.32%, then Alabama at 0.41% and Colorado at roughly 0.51%. Hawaii stays low despite sky-high home values because the state discounts owner-occupied assessments and funds education centrally. Alabama's rates reflect modest home values and constitutional limits on assessment growth. For states where property tax approaches zero for some owners, see our guide on states with no property tax.

Why are Illinois property taxes so high?

Illinois has more than 6,000 local taxing districts, among the most of any state, and funds K-12 education mainly through local property levies instead of state revenue. Cook County and its suburbs stack school, county, and municipal rates that push effective rates past 2.5% in some areas. The Cook County Assessor's Office documents the township reassessment cycles that drive the nation's second-highest effective rate.

How do I know if my property tax assessment is too high?

Compare your assessed value to recent sale prices of similar homes nearby (comps). If your assessor values your home at $350,000 but comparable homes sold for $300,000 in the past 6 to 12 months, you're likely overassessed. You can also request a sales ratio study from your county or run your own: divide your assessed value by what you believe the market value is. A ratio above 1.10 is a strong signal to appeal.

Does Texas have high property taxes even without a state income tax?

Yes. Texas has an effective rate near 1.60%, seventh nationally. With no state income tax, local governments, especially school districts, lean hard on property taxes to fund services. Some suburban Dallas and Houston-area counties run combined rates above 2.0% to 2.5%. Texas also reappraises annually, so rising home values translate straight into rising bills even when the mill rate holds steady.

What is an effective property tax rate and why does it matter more than the stated rate?

An effective rate is taxes actually paid divided by a home's market value. The stated (nominal) rate is the levy per $1,000 of assessed value. Because assessment ratios and exemptions differ by state and county, the nominal rate can mislead. A state with a 3% nominal rate and a 50% assessment ratio has a 1.5% effective rate. For comparing your real burden across states, use the effective rate.

Can I appeal my property taxes even if I live in a high-tax state?

Yes, and the dollar savings are largest in high-tax states. Every state has a formal process. You file by an annual deadline with your county assessor or board of review, present evidence that your assessed value exceeds market value, and get a binding decision. In New Jersey, a 10% reduction on a median home saves about $950 a year. Miss the deadline and you wait a full year to try again.

Do homestead exemptions lower my property taxes significantly?

They can. Florida's homestead exemption removes up to $50,000 from assessed value (split across levies) and caps annual increases at 3% under Save Our Homes. Texas raised its school district homestead exemption to $100,000 in 2023. New Jersey's ANCHOR rebate runs up to $1,500 a year. Actual savings depend on your home's value, your rate, and which exemptions you qualify for. Start with your county assessor's website.

How do New York property taxes compare, and which counties are the worst?

New York's statewide effective rate of 1.38% ranks 14th, but the spread is extreme. Nassau and Westchester counties routinely run effective rates above 2.0% on residential property, while New York City's rate stays artificially low under classification rules that favor large apartment buildings. Upstate counties like Erie and Onondaga carry heavy burdens too. The state's Grievance Day, typically the fourth Tuesday in May, is your annual window to challenge the assessment.

Are property taxes deductible on federal income taxes?

Yes, but the Tax Cuts and Jobs Act of 2017 capped the state and local tax (SALT) deduction at $10,000 a year for individuals and married couples filing jointly (Internal Revenue Code Section 164(b)(6)). That cap bites hardest in high-tax states: a New Jersey homeowner paying $9,476 in property tax alone is already near the federal cap before counting state income taxes.

What's the difference between property tax rates for primary residences vs. investment properties?

Many states and counties assess investment or rental property at a higher rate, a different assessment ratio, or without the homestead exemptions that reduce owner-occupied bills. In Florida, the Save Our Homes cap doesn't apply to non-homesteaded property, so investment assessments can jump to market value every year. In Hawaii, residential investment property sits in a higher rate class than owner-occupied. If you own rentals, check both the rate class and available exemptions separately from your primary residence.

How often do property taxes get reassessed, and can my bill jump suddenly?

Frequency varies by state. Texas reappraises annually. California reassesses only on sale under Proposition 13, capping increases at 2% a year until the property transfers. Cook County, Illinois reassesses residential property on a three-year cycle by township. New Jersey reassesses when a municipality opts for a general revaluation, which can happen decades apart and creates large one-time jumps. Sudden spikes almost always follow a sale or a jurisdiction-wide revaluation, and they're the most common trigger to appeal.

Is hiring a property tax consultant worth it, or can I appeal on my own?

For most residential homeowners, a DIY appeal is doable. The evidence you need, comparable sales, your property record card, and the assessor's methodology, is public. Contingency firms usually charge 25% to 50% of the first year's savings, so on a $1,200 reduction you hand over $300 to $600 for work you can finish in a few hours. The main reason to hire help is complex commercial property, where income-approach valuations need a professional appraiser.

Sources

1. Tax Foundation, 'Property Taxes by State and County, 2024': New Jersey effective property tax rate of 2.23%, Illinois 2.08%, Hawaii 0.32%; state rankings by effective rate
2. U.S. Census Bureau, American Community Survey 5-Year Estimates, Table B25103: Median property taxes paid by owner-occupied households; source data underlying state effective rate comparisons
3. Cook County Assessor's Office, Illinois: Cook County township reassessment cycle and appeal procedures for Illinois residential property
4. New Jersey Division of Taxation, Property Tax: School levies account for approximately 60% of average NJ property tax bill; April 1 appeal deadline; ANCHOR benefit program
5. Texas Comptroller of Public Accounts, Property Tax: Texas Tax Code Section 23.23 10% annual assessment cap; Section 11.13(b) $100,000 homestead exemption; May 15 protest deadline; 3.5 million protests filed in 2023
6. International Association of Assessing Officers (IAAO), Standard on Ratio Studies 2020: Acceptable residential COD below 15%; median assessment ratio target 90-110% of market value
7. Colorado General Assembly, Proposition HH analysis, 2023: Colorado residential assessment rate changes following Proposition 116 (2020) and Proposition HH (2023)
8. New York State Department of Taxation and Finance, Property Tax and Assessment: New York Grievance Day falls on the fourth Tuesday in May for most jurisdictions
9. Florida Department of Revenue, Property Tax: Florida homestead exemption of up to $50,000; Save Our Homes 3% annual assessment cap under Article VII, Section 4, Florida Constitution
10. National Education Association, 'Rankings and Estimates' report: New Jersey ranks first in per-pupil spending at more than $22,000 per student, roughly 60% above the national average
11. Commonwealth of Massachusetts, Property Tax Forms and Guides (M.G.L. Chapter 59, Section 5, Clause 41C): Massachusetts income-based property tax credit for elderly homeowners
12. Michigan Department of Treasury, Homestead Property Tax Credit: Michigan Homestead Property Tax Credit available when property taxes exceed a percentage of household income
13. Internal Revenue Service, Topic No. 503 (IRC Section 164(b)(6)): SALT deduction capped at $10,000 per year for individuals and married couples filing jointly