Last updated 2026-07-09
TL;DR
Effective property tax rates in 2024 run from 0.27% in Hawaii to 2.23% in New Jersey, per the Tax Foundation's analysis of U.S. Census Bureau data. Your actual bill depends on your state's assessment ratio, local levies, and the exemptions you claim. If your assessed value is wrong, you can appeal it yourself and keep every dollar you save.
Why do property tax rates vary so much from state to state?
Property tax is a local affair, almost entirely. The U.S. Constitution says nothing about it. Each state writes its own rules on how property gets assessed, what rate applies, and which exemptions cut the bill. Then counties, cities, school districts, and special districts stack their own levies on top. So a homeowner in Honolulu pays an effective rate near 0.27% while a homeowner in Trenton pays more than eight times that. [1]
The "effective rate" is the number that matters for comparing states. It's your annual bill divided by the market value of your home, not the nominal millage printed on your notice. A county can post a nominal rate of 30 mills but assess property at 30% of market value, which lands at an effective rate near 0.9%. Another county at 15 mills but 100% assessment ratios hits you harder. Always use effective rates for any honest property tax comparison by state.
Four things drive the gap between states: (1) how much local government leans on property tax versus income or sales tax, (2) whether the state has a homestead exemption or circuit-breaker credit that offsets bills for owner-occupants, (3) assessment caps that freeze taxable values for long-term owners, and (4) the raw cost of local services, above all public schools. New Jersey covers a large share of public education costs at the local level through property taxes, according to the National Education Association [2], which is a big reason its bills top the nation.
What are the highest property taxes by state in 2024?
New Jersey leads at 2.23%, and it isn't close. The ten states with the highest effective rates in 2024, based on the Tax Foundation's analysis of median owner-occupied home values and median real estate taxes paid from the U.S. Census Bureau's American Community Survey: [1]
| Rank | State | Effective Rate | Median Annual Tax Bill |
|---|---|---|---|
| 1 | New Jersey | 2.23% | $9,476 |
| 2 | Illinois | 2.08% | $5,055 |
| 3 | Connecticut | 1.79% | $6,484 |
| 4 | New Hampshire | 1.77% | $7,172 |
| 5 | Vermont | 1.71% | $4,770 |
| 6 | Texas | 1.60% | $3,872 |
| 7 | Nebraska | 1.54% | $3,159 |
| 8 | Wisconsin | 1.51% | $3,654 |
| 9 | Ohio | 1.48% | $2,958 |
| 10 | Pennsylvania | 1.43% | $3,442 |
New Jersey has held the top spot for more than a decade. Texas surprises people because the state has no income tax, and everyone assumes that means low overall taxes. It doesn't. Texas makes up the difference through property taxes, and with no state assessment cap on non-homestead property, commercial and rental owners get hit especially hard. Own in Texas? See our full guide on How to Appeal Property Taxes in Texas: 2026 Protest Guide.
Illinois sits second mostly because Cook County's system produces huge swings between property classes, with residential owners routinely overassessed relative to commercial property. A study by the University of Chicago Harris School's Center for Municipal Finance found that lower-value homes in Cook County were assessed at higher effective rates than higher-value homes, a regressive pattern [3]. Owners there have a strong reason to appeal. See How to Appeal Property Taxes in Illinois: Cook County and Beyond.
For a longer look at what pushes these states to the top, see what states have the highest property taxes.
What are the lowest property tax states in 2024?
Hawaii sits dead last at 0.27%, the lowest effective rate in the country. The ten states with the lowest effective rates in 2024: [1]
| Rank | State | Effective Rate | Median Annual Tax Bill |
|---|---|---|---|
| 41 | South Carolina | 0.57% | $1,024 |
| 42 | Nevada | 0.55% | $1,789 |
| 43 | Arizona | 0.51% | $1,648 |
| 44 | Utah | 0.50% | $1,952 |
| 45 | Idaho | 0.49% | $1,644 |
| 46 | West Virginia | 0.49% | $698 |
| 47 | Wyoming | 0.47% | $1,380 |
| 48 | Colorado | 0.45% | $1,852 |
| 49 | Alabama | 0.40% | $701 |
| 50 | Hawaii | 0.27% | $1,893 |
Hawaii's rate looks astounding until you notice two things. The state funds services through income tax and tourism-driven revenue that other states fund locally through property tax. And home values there are so high that even a 0.27% rate produces a bill over $1,800 on a median home. Low rate, high bill. Hawaiians don't pay little in overall state and local taxes.
Alabama's low rate hides a catch common across the Deep South. The state assesses owner-occupied homes at just 10% of market value under Ala. Code Section 40-8-1 [4], so nominal millage rates look sky-high while the taxable base stays tiny. Colorado's low rate traces to the Gallagher Amendment's legacy and later adjustments that kept residential assessment ratios suppressed. That could shift as the legislature keeps rewriting the rules.
None of these states has truly zero property tax. If you've seen that claim, read states with no property tax and what states don't have property tax for the real picture.
Full state-by-state property tax ranking for 2024
Here's the complete states ranked by property tax picture. Rates below are effective rates (annual tax / market value) drawn from the Tax Foundation's 2024 report, which uses 5-year American Community Survey data pooled through the most recent available period. [1]
| State | Eff. Rate | State | Eff. Rate |
|---|---|---|---|
| Alabama | 0.40% | Montana | 0.74% |
| Alaska | 1.04% | Nebraska | 1.54% |
| Arizona | 0.51% | Nevada | 0.55% |
| Arkansas | 0.62% | New Hampshire | 1.77% |
| California | 0.73% | New Jersey | 2.23% |
| Colorado | 0.45% | New Mexico | 0.80% |
| Connecticut | 1.79% | New York | 1.36% |
| Delaware | 0.55% | North Carolina | 0.80% |
| Florida | 0.86% | North Dakota | 0.98% |
| Georgia | 0.87% | Ohio | 1.48% |
| Hawaii | 0.27% | Oklahoma | 0.87% |
| Idaho | 0.49% | Oregon | 0.82% |
| Illinois | 2.08% | Pennsylvania | 1.43% |
| Indiana | 0.85% | Rhode Island | 1.30% |
| Iowa | 1.43% | South Carolina | 0.57% |
| Kansas | 1.33% | South Dakota | 1.08% |
| Kentucky | 0.80% | Tennessee | 0.67% |
| Louisiana | 0.53% | Texas | 1.60% |
| Maine | 1.09% | Utah | 0.50% |
| Maryland | 1.05% | Vermont | 1.71% |
| Massachusetts | 1.14% | Virginia | 0.82% |
| Michigan | 1.38% | Washington | 0.84% |
| Minnesota | 1.02% | West Virginia | 0.49% |
| Mississippi | 0.65% | Wisconsin | 1.51% |
| Missouri | 0.97% | Wyoming | 0.47% |
Two states deserve a footnote. California's 0.73% rate reads modest, but because home values are so high, the median annual bill in many Bay Area counties runs well over $6,000. Prop 13's 1% cap on assessed value and its 2% annual increase limit [5] keep long-term owners' bills artificially low, while new buyers pay full freight on current market value. Florida's 0.86% rate benefits from the Save Our Homes cap, a 3% annual limit on assessed-value growth for homestead properties [6], but that protection vanishes when you move, and in high-value coastal markets new buyers still face large bills. For Florida appeal options, see How to Appeal Property Taxes in Florida: 2026 Filing Guide.
How does your state calculate the tax you actually owe?
The formula reads simple: assessed value times the millage rate equals your bill. Every variable in that equation is where the complexity lives.
Assessed value is usually not market value. Most states apply an assessment ratio. Louisiana assesses residential property at 10% of fair market value [7]. Tennessee assesses residential property at 25%. So a $400,000 home in Louisiana carries a $40,000 assessed value. A nominal rate of 100 mills ($100 per $1,000 of assessed value) sounds brutal until you remember the taxable base is a tenth of the home's worth.
Millage rates get set by overlapping taxing bodies. Your single annual bill usually combines the county rate, the municipal rate, the school district rate, and any special district levies for fire, water, or a community college. Elected bodies vote on these, and they change every year. In Texas the state itself levies no property tax [8]; every mill comes from local entities.
Exemptions cut the taxable assessed value before the rate applies. The homestead exemption is the most common one. In Georgia, the basic homestead exemption removes $2,000 of assessed value at the county level, though individual counties and school boards can offer much larger local exemptions [9]. Seniors, veterans, and disabled homeowners often qualify for more. Most exemptions need an application, one-time or annual, and they don't apply on their own. Skip the paperwork and that's real money gone.
Which states saw the biggest property tax increases in 2024?
Nobody has clean real-time data on this. State-level aggregate figures from the Census Bureau's ACS lag one to two years, and county assessors publish their own numbers on their own schedules. The closest authoritative sources are the Lincoln Institute of Land Policy's Significant Features of the Property Tax database and the National Taxpayers Union Foundation's annual analysis.
Still, states with fast-rising home prices almost always see assessed values catch up after a two-to-three-year lag. Florida, Texas, Georgia, and Idaho all saw median home values climb 30-50% between 2020 and 2023 [10], and even where assessment caps exist, a newly purchased home gets reassessed to current market value at sale. Georgia counties that reassess annually (most do) delivered some of the sharpest jumps in 2023-2024. For a county-level example, see How to Appeal Property Taxes in Georgia: County-by-County Guide.
Homeowners in Nassau and Suffolk Counties, New York, went through heavy reassessment cycles after years of frozen values. When an "equalization" update covers many years at once, the jump feels violent. New York's grievance process runs on strict deadlines that vary by municipality, often in May, so don't sit on it. See How to Appeal Property Taxes in New York: Grievance Day Guide.
The honest answer for 2024: if your area ran hot in 2021-2023, expect your 2024 or 2025 notice to reflect those gains, even if prices have softened since.
What is the average property tax in the U.S. in 2024?
The national median real estate tax paid was about $2,795 per year on owner-occupied housing, based on the most recent 5-year American Community Survey estimates [1]. The national average effective rate works out to roughly 1.02% of home value.
Those numbers hide enormous spread. A Northeastern household paying $8,000 a year and a Deep South household paying $700 both fold into one average that describes nobody. The median beats the mean here because a handful of very high-bill properties in New York City and Northern New Jersey drag the average up.
Here's a benchmark you can use. If your effective rate runs more than 15-20% above your state's median, you have a credible argument that your assessment is out of line with your neighbors. That's the spine of a winning appeal. Pull your county's assessment roll (almost every county posts it online), find five to ten comparable sales from the six to twelve months before your assessment date, and compare assessed-to-sale ratios. If yours is higher, you have your evidence.
How does property tax compare to other state and local taxes?
Property tax is the biggest single revenue source for local governments in the United States. Census Bureau State and Local Government Finances data show property taxes account for about 31% of all state and local tax revenue, against roughly 23% for general sales taxes and 22% for individual income taxes [11]. Nothing else comes close at the local level.
This matters for your household because property tax is the one big tax with an assessment you can contest. Your income tax rate is set by statute; you can't tell the IRS your income deserves 18% instead of 22%. But your property's assessed value is an opinion, and assessors are wrong often enough that somewhere between a quarter and a third of appealed assessments get reduced, according to various state assessment board reports. The exact share swings hard by jurisdiction, and nobody collects clean national data on it.
If you own vehicles or personal property, know that about 27 states also tax personal property like cars, boats, and business equipment. That's a separate system from real estate taxes, with its own rates and appeal rights. See personal property tax by state and car property tax by state for how those work.
Can you appeal a property tax assessment yourself, and is it worth it?
Yes, and it's easier than most people expect. The formal process usually takes one to three hours of research and thirty minutes of paperwork. The steps: get your assessment notice, look up your property on the county's online portal, pull five to ten recent sales of comparable homes, build a side-by-side comparison, file the appeal form by the deadline, and show up to a short informal hearing or submit your evidence in writing.
Contingency firms charge 25-50% of your first year's savings. Run the math. On a $350,000 home at a 1.5% effective rate, your bill is $5,250. Cut it by $500 and the firm keeps $125-$250. You keep $250-$375. Do it yourself and you keep the full $500, every year the reduction holds, which is often several years before the assessor recalculates.
The TaxFightBack DIY appeal kit walks you through the comp search, the evidence package, and the hearing script for your state, so you don't start from a blank page. Even without a kit, the assessor's office is required by law to explain its process, and many post free instructional guides on their own websites.
Deadlines are where people get burned. Miss the window and you're locked out for the year. Filing windows range from 30 days after your notice (some Texas entities) to 90 days (many Midwest states) to a fixed calendar date like May 1 in many New York municipalities. Check your county assessor's website the day your notice arrives.
New Jersey ranks among the most appeal-friendly states because you can carry an appeal all the way to the Tax Court without an attorney, though court fees and complexity make a lawyer worth considering on high-value properties. See How to Appeal Property Taxes in New Jersey: Tax Court Process.
Which states have the most taxpayer-friendly appeal systems?
There's no official ranking of appeal-friendliness, but a few states stand out for accessible processes.
Texas gives you a mandatory informal hearing before your formal Appraisal Review Board hearing, and you present evidence without an attorney. The state also offers binding arbitration for residential properties valued under $5 million, capped at $450 in arbitration costs. [8]
Florida lets you file with the Value Adjustment Board and usually get a decision within six months. The evidence rules favor homeowners who can show the assessor's value exceeds market value by any amount. [6]
California's Proposition 8 allows a temporary reduction when market value drops below your Prop 13 base year value. [5] The process is administrative, and there's no fee to file.
On the other side sits New York City, whose system is opaque and uses fractional assessments that vary by property class in ways that are genuinely hard to work through without knowing the local rules. Cook County, Illinois, has a well-funded appellate structure but a three-level path (assessor, Board of Review, then Property Tax Appeal Board or Circuit Court) that can drag past two years.
The common thread in states where appeals win often: assessors who don't update values much, so the gap between assessed and actual market value grows wide. Reset values infrequently and there are more errors to find. For a broader comparison, see property tax ranking by state.
Want to know where 2025 rates are heading? See property tax by state 2025 as those figures come available.
What property tax exemptions reduce bills in high-tax states?
Every high-tax state has exemptions built to soften the load for at least some owners. The catch is that most require you to apply.
New Jersey's homestead benefit program has in recent years paid rebates to homeowners with income under $150,000, with a partial benefit up to $250,000. [12] It works as a credit on future bills rather than a cut to assessed value. Eligibility and amounts shift with each state budget, so check the New Jersey Division of Taxation's current program details.
Illinois offers a general homestead exemption that trims assessed value by up to $10,000 in Cook County and $6,000 in other counties, plus a senior homestead exemption, a senior assessment freeze, and a disabled veterans exemption. [13] Cook County residents file all of these through the Assessor's online portal.
Texas has a $100,000 homestead exemption from school district taxes as of 2023, raised from $40,000 by the Texas Legislature's SB 2 in the 88th Session [8], plus an over-65 freeze that caps school taxes permanently once you turn 65. That freeze alone can save thousands a year, and it transfers to a surviving spouse.
Connecticut and Vermont both run circuit-breaker programs that cap property taxes as a share of household income for qualifying seniors and low-income owners. Vermont's Property Tax Credit can cut bills by up to $8,000 for eligible households.
So before you appeal your assessment, claim every exemption you qualify for. An exemption drops your taxable value by a fixed amount no matter whether your assessment is accurate. An appeal drops the assessed value itself, which multiplies across every levy that touches it.
Frequently asked questions
Which state has the highest property tax rate in 2024?
New Jersey has the highest effective property tax rate in 2024 at 2.23%, according to the Tax Foundation's analysis of U.S. Census Bureau data. The median annual property tax bill in New Jersey is about $9,476. The state's heavy reliance on local property taxes to fund public schools is the main driver of that rate.
Which state has the lowest property tax rate in 2024?
Hawaii has the lowest effective property tax rate in 2024 at about 0.27%. Despite the low rate, Hawaii's high home values push median annual bills close to $1,900. Alabama ranks second-lowest at roughly 0.40%, partly because the state constitutionally limits residential assessments to 10% of fair market value under Ala. Code Section 40-8-1.
What is the average property tax rate in the United States?
The national average effective property tax rate is about 1.02%, with a national median annual bill of roughly $2,795 for owner-occupied homes. These figures come from the U.S. Census Bureau's American Community Survey. The average hides extreme variation: Northeastern states cluster above 1.5% while Southern and Mountain West states mostly sit below 0.75%.
Why is Texas property tax so high compared to other states?
Texas has no state income tax, so local governments fund schools, roads, and services almost entirely through property levies. The state itself levies no property tax; every mill comes from counties, cities, school districts, and special districts. The legislature raised the homestead exemption to $100,000 in 2023 to ease the load for owner-occupants, but Texas still ranks sixth nationally at about 1.60%.
How does the property tax rate in New Jersey compare to New York?
New Jersey's effective rate of 2.23% runs well above New York's 1.36%. But New York City's fractional assessment system means many NYC homeowners pay less in absolute dollars than their rate implies, while suburban Long Island owners face some of the highest bills in the country. New Jersey homeowners get less shelter from the system and face high rates across nearly every county.
How do I find my state's property tax appeal deadline?
Your county assessor or county auditor's website is the authoritative source. Deadlines vary by state and sometimes by county within a state. Common windows: 30 to 90 days from the date of your assessment notice, or a fixed calendar date (May 1 in many New York municipalities, May 15 in Minnesota, the last day of July in some Texas entities). Don't rely on general articles; check the specific county's site the day your notice arrives.
Can I appeal my property tax assessment without a lawyer?
Yes. In all 50 states, property owners can file an assessment appeal without an attorney. The informal hearing level, which resolves most successful appeals, needs only comparable sales data and a completed form. Attorneys and contingency firms take 25-50% of your first-year savings. Do it yourself and you keep 100% of any reduction, which typically carries forward for multiple years.
What states have no property tax on primary residences?
No U.S. state fully exempts primary residences from all property tax. Some states and localities offer very large homestead exemptions that reduce or wipe out taxable value for qualifying low-income or senior owners, but a blanket zero-tax rule doesn't exist at the state level. See our guide on states with no property tax for what the closest exemptions look like in practice.
How does California's property tax system work compared to other states?
California's Proposition 13, passed in 1978, caps property taxes at 1% of assessed value and limits annual assessment increases to 2% until the property sells. At sale, it resets to current market value. The effective rate is 0.73%, modest nationally, but with home values averaging $700,000 or more in many markets, absolute bills run high. Long-term owners pay far less than recent buyers on identical homes.
Do states with no income tax have higher property taxes?
Generally yes. States that skip income tax tend to make up for it with higher property or sales taxes. Texas (no income tax, 1.60% effective property rate), New Hampshire (no income or sales tax, 1.77% property rate), and Washington (no income tax, 0.84% property rate) show the range. The offset isn't always dollar-for-dollar. Wyoming pulls off no income tax with just a 0.47% property rate thanks to large energy severance tax revenues.
How are property taxes calculated on a home I just bought?
In most states, your home is reassessed to market value at or near the sale date. Your new assessed value is multiplied by the local assessment ratio, then by the combined millage rate for every taxing body in your area. Some states (California, Florida) have caps that limit future increases but start the clock at your purchase price. Check your county assessor's website within 60 days of closing to verify the value on record.
What is the difference between assessed value and market value for property taxes?
Market value is what your home would sell for on the open market. Assessed value is the number the assessor uses as the base for your tax, which may be 10% to 100% of market value depending on your state's assessment ratio. Texas assesses at 100% of market value. Louisiana residential property is assessed at 10%. Your effective rate blends both numbers; always use it for comparisons across state lines.
Which states have the best property tax exemptions for seniors?
Texas, Florida, Illinois, and New Jersey have notable senior exemptions or freezes. Texas's over-65 school tax freeze ranks among the strongest in the country, permanently capping school district taxes. Florida offers an added $50,000 senior exemption for owners 65 and older with income below $35,167 (indexed annually). Illinois has a senior assessment freeze that locks the equalized assessed value for qualifying seniors. All require an application.
How often do states reassess property values?
Reassessment cycles range from annual (most Texas appraisal districts, most Georgia counties, many Midwestern counties) to every several years (some Connecticut towns reassess every five years; Maryland counties every three years by statute). States with infrequent cycles tend to build up larger gaps between assessed and market value, which cuts both ways: you might be under-assessed for years, then get a jarring jump when the cycle resets.
Sources
- Tax Foundation, Property Taxes by State: Effective property tax rates by state, ranging from 0.27% in Hawaii to 2.23% in New Jersey, with a national median annual bill of approximately $2,795
- National Education Association, Rankings and Estimates: New Jersey funds a high share of public education costs at the local level through property taxes, contributing to the state's high effective rates
- University of Chicago Harris School / Center for Municipal Finance, Cook County Assessment Study: Lower-value homes in Cook County, Illinois were assessed at higher effective rates than higher-value homes, a pattern of regressive assessment
- Alabama Department of Revenue, Property Tax: Alabama assesses owner-occupied residential property at 10% of fair market value under Ala. Code Section 40-8-1
- California State Board of Equalization, Proposition 13 overview: California Proposition 13 caps property tax at 1% of assessed value and limits annual assessment increases to 2%; Proposition 8 allows temporary reduction when market value falls below base year value
- Florida Department of Revenue, Property Tax Overview: Florida's Save Our Homes cap limits annual increases in assessed value for homestead properties to 3%, and the Value Adjustment Board provides an accessible appeal forum
- Louisiana Tax Commission, Property Assessment: Louisiana assesses residential property at 10% of fair market value for property tax purposes
- Texas Comptroller of Public Accounts, Property Tax Basics: Texas levies no state property tax; all property tax is local. The homestead exemption was raised to $100,000 from school district taxes by SB 2 in the 88th Legislative Session (2023). Binding arbitration is available for residential properties under $5 million.
- Georgia Department of Revenue, Property Tax Exemptions: Georgia's basic homestead exemption reduces assessed value by $2,000 at the county level; individual counties and school boards may offer larger local exemptions requiring separate application
- Federal Housing Finance Agency, House Price Index: Florida, Texas, Georgia, and Idaho saw median home values rise 30-50% between 2020 and 2023 according to FHFA House Price Index data
- U.S. Census Bureau, State and Local Government Finances: Property taxes account for approximately 31% of all state and local tax revenue nationally, making them the largest single local government revenue source
- New Jersey Division of Taxation: New Jersey's homestead benefit program provides property tax rebates to homeowners with income under $150,000, with a partial benefit available up to $250,000
- Illinois Department of Revenue, Property Tax Exemptions: Illinois offers a general homestead exemption (up to $10,000 in Cook County), senior homestead exemption, senior assessment freeze, and disabled veterans exemption, all requiring application