Property tax by state 2025: rates, caps, and what you can do

Last updated 2026-07-09

What are the actual property tax rates by state in 2025?

The number that matters is the effective property tax rate: annual taxes paid divided by the market value of the home. Nominal millage rates (what assessors publish) mislead you, because they apply to assessed value, and many states set assessed value at 50%, 40%, or some other slice of market value. Effective rates cut through that and let you compare states honestly.

The Tax Foundation's 2025 analysis of Census Bureau American Community Survey data puts the nationwide median effective rate near 1.02% of home value ^[1]. That sounds mild until you apply it to a $400,000 home: $4,080 a year, every year, for as long as you own it.

Here are the effective property tax rates for all 50 states plus D.C., ranked lowest to highest. These are the Tax Foundation's 2025 estimates from owner-occupied housing data ^[1].

State	Effective Rate	Rank (1 = lowest)
Hawaii	0.28%	1
Alabama	0.41%	2
Colorado	0.51%	3
Nevada	0.55%	4
Utah	0.57%	5
South Carolina	0.57%	6
Delaware	0.61%	7
West Virginia	0.62%	8
Wyoming	0.63%	9
Arkansas	0.64%	10
Arizona	0.66%	11
Louisiana	0.67%	12
Idaho	0.69%	13
Tennessee	0.71%	14
California	0.75%	15
New Mexico	0.80%	16
Mississippi	0.80%	17
Montana	0.84%	18
Kentucky	0.86%	19
Virginia	0.87%	20
Indiana	0.87%	21
Florida	0.89%	22
North Carolina	0.90%	23
Georgia	0.92%	24
Oklahoma	0.93%	25
North Dakota	0.95%	26
Oregon	1.01%	27
Missouri	1.01%	28
Washington	1.05%	29
Maryland	1.09%	30
Minnesota	1.11%	31
Alaska	1.22%	32
Massachusetts	1.23%	33
South Dakota	1.31%	34
Maine	1.36%	35
Kansas	1.41%	36
Michigan	1.54%	37
Iowa	1.57%	38
Pennsylvania	1.58%	39
Ohio	1.59%	40
Rhode Island	1.63%	41
New York	1.72%	42
Nebraska	1.73%	43
Wisconsin	1.73%	44
Texas	1.74%	45
Connecticut	1.79%	46
Vermont	1.90%	47
Illinois	2.08%	48
New Hampshire	2.09%	49
New Jersey	2.23%	50

D.C. sits around 0.56%, low for the region, but it isn't a state so it doesn't get a state rank. Rankings shift a little as states release updated ACS microdata, and a few states within a tenth of a point of each other can swap places year to year. For the current figures, check the Tax Foundation's State and Local Tax data ^[1].

For a year-over-year view, see our look at property tax by state 2024 to spot the trend in your state.

Which states have the highest property taxes in 2025?

New Jersey leads the country at an effective rate of 2.23%. On a median-value New Jersey home (roughly $450,000 as of 2024), that works out to more than $10,000 a year ^[1][2]. New Hampshire follows at 2.09%, Illinois at 2.08%, and Vermont at 1.90%. Connecticut and Wisconsin both clear 1.70%.

High rates hurt most when they land on high home prices. Texas has a 1.74% effective rate, already steep, and median home values near $300,000 push the typical Texas bill past $5,000 a year. In New Jersey, that same class of rate applied to a pricier house produces a bill that can top $15,000 for an above-average home.

For a full breakdown of the priciest states, our states ranked by property tax guide goes county by county within the high-burden states. Our page on what states have the highest property taxes explains why those burdens exist in the first place.

Which states have the lowest property taxes?

Hawaii has the lowest effective rate in the country at 0.28%, which shocks people because Hawaii home prices are among the highest anywhere. The rate is low because Hawaii's state government funds most public services directly instead of routing them through property tax. Alabama (0.41%) and Colorado (0.51%) fill out the bottom three.

Low rates don't always mean low bills. Hawaii's median home price near $800,000 turns that 0.28% into a $2,240 annual bill. For equivalent homes, though, Hawaii owners pay far less than owners in New Jersey or Illinois.

Some people think a few states charge no property tax at all. Not true for residential real estate. Every state taxes real property somehow. For what those searches actually mean (usually no state-level property tax, with local taxes still in force), see states with no property tax and what states don't have property tax.

What are property tax caps by state, and do they really protect you?

A property tax cap is a legal limit on how much your assessed value or your actual tax bill can grow year over year. Those are two different things, and the difference decides whether the cap actually helps you.

Assessment caps limit how fast your assessed value can rise. California's Proposition 13 is the famous one: it caps annual assessment increases at 2% for existing owners, no matter what the market does ^[3]. Florida caps homestead assessment increases at 3% a year or the rate of inflation, whichever is lower, under the Save Our Homes amendment ^[4]. Michigan caps annual assessment increases at 5% or the inflation rate, whichever is lower ^[5].

Rate caps limit the millage rate itself. Colorado's TABOR provisions limit how much total property tax revenue can grow without voter approval ^[6].

Bill caps limit the dollar increase in your tax bill directly. Maryland, for one, limits annual tax bill increases to 10% for most homeowners, though local rules vary by county.

Here's a quick summary of notable caps:

State	Cap type	Cap limit	Statute/authority
California	Assessment	2% annual increase	Prop 13, Cal. Const. Art. XIII A [3]
Florida	Assessment (homestead)	3% or CPI, lower	Art. VII, Sec. 4, FL Constitution [4]
Michigan	Assessment	5% or CPI, lower	MCL 211.27a [5]
Texas	Assessment (homestead)	10% annual increase	Tax Code Sec. 23.23 [7]
New York	Levy	2% or CPI, lower	Real Property Tax Law Sec. 3-c [8]
Colorado	Revenue	TABOR limits growth	Colo. Const. Art. X, Sec. 20 [6]
Oregon	Assessment	3% annual increase	Measure 50 (1997)
Arizona	Assessment	5% annual increase	ARS Sec. 42-13302

Caps protect long-term owners from being taxed out of appreciating markets. They also create a fairness gap. A new buyer next door to a 30-year resident can pay two or three times more tax on an identical house. If you just bought in a capped state, your assessment probably reset to your purchase price, which can put you at the top of the local range. That's a good reason to check your comparables hard.

And here's the part people miss: a cap does nothing about a straight over-assessment. If the assessor pegged your home at $500,000 when it's worth $420,000, a 2% cap on that inflated number just locks in the overpayment for years. The cap and the appeal are separate tools. You need both.

How do effective property tax rates actually get calculated?

The math is simple: divide the annual property tax bill by the home's fair market value, then read it as a percentage.

Pay $4,500 a year on a $350,000 home, and your effective rate is 4,500 / 350,000 = 1.29%.

Where it gets murky is that assessors often don't assess at 100% of market value. Many states use assessment ratios of 50%, 60%, or 80%. Your bill then works out to (assessed value) x (millage rate / 1,000).

Example: a $300,000 home in a state with a 50% assessment ratio and a 40-mill rate.

• Assessed value: $150,000
• Annual tax: $150,000 x (40/1,000) = $6,000
• Effective rate: $6,000 / $300,000 = 2.0%

The published 40-mill rate sounds lower than 2.0%, which is exactly how nominal rates fool people. The Tax Foundation's effective rate figures already run this conversion for you, so they're the cleanest tool for comparing states ^[1].

For state-by-state assessment ratios and how they hit your bill, our property tax percentage by state article breaks down the mechanics in each jurisdiction.

How do I know if my assessment is wrong?

Start with one question: does the assessor's number match what you could actually sell the house for today? Your assessment notice arrives in the mail, sometimes yearly, sometimes every few years depending on your state. The figure on it is what the assessor thinks your home is worth, or some fraction of it under your state's ratio.

The fastest check is your county assessor's online portal. Almost every county has one now. Search your address, pull up your property record card, and look at land value, building square footage, condition rating, and bed and bath count. Errors in those fields are common, and each one pads your bill. A wrong square footage is the single most correctable mistake, and fixing it costs nothing.

Next, run comparable sales. Find three to five homes that sold in the past 6 to 12 months, close to yours in size, age, condition, and location. If they sold for less than your assessed value, you have an appeal. The county portal usually carries sales data. Zillow, Redfin, and the county recorder's office are backups.

Nobody has clean national data on how often assessments are wrong. The closest rigorous work is a 2021 study from the University of Chicago's Harris School of Public Policy analyzing Cook County, which found lower-value homes were assessed at roughly double the effective rate of higher-value homes ^[9]. That regressivity is real, widespread, and not unique to Illinois.

For state appeal walkthroughs, we have guides for How to Appeal Property Taxes in Texas, How to Appeal Property Taxes in Florida, How to Appeal Property Taxes in Georgia, How to Appeal Property Taxes in New York, How to Appeal Property Taxes in Illinois, and How to Appeal Property Taxes in New Jersey.

What are the property tax appeal deadlines by state in 2025?

Miss the deadline and you're locked in for another year. There's no recovering it. Most states give you 30 to 90 days from the date your assessment notice is mailed, but several run fixed calendar deadlines that apply no matter when the notice showed up.

Here are the 2025 appeal windows for the most populous states. Confirm each with your county assessor, because local jurisdictions shift dates ^[10][11].

State	Typical deadline	Filing body	Notes
Texas	May 15 or 30 days after notice	Appraisal Review Board	File by May 15 in most counties [7]
California	60 days from notice (or Nov 30 in most counties)	County Assessment Appeals Board	Varies by county [3]
Florida	25 days from TRIM notice (late Aug)	Value Adjustment Board	TRIM arrives ~Aug; deadline ~Sept [4]
New York	"Grievance Day" (varies by municipality, usually May-June)	Board of Assessment Review	Check your town's specific date [8]
Illinois	30 days from assessment notice	County Board of Review	Cook County has separate rules [12]
New Jersey	April 1 (or 45 days after notification)	County Tax Board	Hard April 1 deadline in most years [13]
Pennsylvania	Varies by county (often Aug 1)	County Board of Assessment	Philadelphia is separate
Georgia	45 days from assessment notice	County Board of Equalization
Michigan	July 31 (Michigan Tax Tribunal)	Michigan Tax Tribunal	Local Board of Review in March [5]
Ohio	60 days from assessment notice	County Board of Revision

If you're in a high-tax state and want to see how one county stacks up against its neighbors, our shelby county property tax guide and washington county mn property tax guide show the county-level detail that decides real appeals.

Should you hire a property tax firm or appeal yourself?

Contingency firms charge 25% to 50% of your first year's tax savings. On a $2,000 reduction, that's $500 to $1,000 out of your pocket for a job most homeowners can handle alone.

Here's what a contingency firm really does. It pulls comparable sales (public record), fills out a one-to-three-page form, and shows up at an informal hearing. You can do every piece of that. The form is on your county assessor's website. The comps are on Zillow, Redfin, or the county portal. The hearing is informal in most states, meaning you're talking to a person, not arguing in front of a judge.

Where a pro earns the fee: commercial properties with income-approach valuations, states with formal Tax Court proceedings (New Jersey's tax court process gets genuinely complicated ^[13]), and multi-parcel disputes where the dollars justify legal fees.

For a homeowner with a $200,000 to $600,000 house, DIY is almost always the right move. The TaxFightBack DIY appeal kit walks you through the comparable-sales analysis, the hearing script, and the written evidence package, and you keep every dollar you save.

One honest caveat. If your county has a habit of brushing off informal appeals and pushing everyone to a formal board of review or tax court, the time cost goes up. Ask the assessor's office how many informal appeals actually result in reductions before you decide.

How does your state's property tax compare to neighboring states?

Regional patterns tell you a lot. The Northeast is the most expensive region: New Jersey, New Hampshire, Vermont, Connecticut, plus Illinois (technically Midwest, but it behaves like the Northeast on tax) all sit above 1.70%. Live in one of those and you're in the top 15% of the national burden, where a successful appeal moves more dollars than anywhere else in the country.

The Southeast runs low. Alabama, South Carolina, and Tennessee all cluster below 0.75%. That's partly by design, since many Southern states fund schools and services through sales taxes, shifting the load onto spending instead of ownership.

The Mountain West is mixed. Colorado's TABOR-constrained system keeps rates near 0.51%, but fast home price growth has pushed dollar bills up even with rates flat. Utah and Nevada tell the same story: low rates, rising values.

The Midwest swings wide. Nebraska (1.73%), Wisconsin (1.73%), and Iowa (1.57%) are steep. Kentucky (0.86%) and Missouri (1.01%) are not. If you live near a state border, it pays to know which side of the line you're on.

For the full ranking from cheapest to priciest, our property tax ranking by state guide has a sortable table with both effective rates and median dollar bills.

What about personal property taxes and vehicle property taxes by state?

Real estate isn't the only property states tax. About 38 states levy some form of personal property tax on business equipment. Closer to home for most owners, about 11 states tax vehicles each year based on assessed value. Virginia, for one, charges a personal property tax on cars that can run $400 to $1,200 per vehicle per year depending on the county and the car's book value. Missouri, North Carolina, Mississippi, and Connecticut are other states with notable vehicle property taxes ^[14].

This is a separate system from real estate tax, with its own deadlines, assessment methods, and appeal rights. For which states tax cars and how much, see our car property tax by state and vehicle property tax by state guides. For business equipment, our personal property tax by state guide covers the rules in each state.

What exemptions can lower your property tax bill in 2025?

Every state runs at least one exemption program that cuts your taxable assessed value or your final bill. The common ones:

Homestead exemptions apply to your primary residence. Texas exempts $100,000 of assessed value from school district taxes as of 2023, raised by HB 5 from the prior $40,000 ^[7]. Florida exempts up to $50,000 of value for homestead properties under Article VII of its constitution ^[4]. Georgia exempts $2,000 in most counties, with larger exemptions available locally.

Senior exemptions and freezes are often the most valuable programs that go unclaimed. Illinois's Senior Citizens Homestead Exemption is $8,000 off assessed value in Cook County. Many states (Texas, South Carolina, California via Prop 19) let seniors carry their low assessed value to a new home when they downsize.

Disability and veteran exemptions can be large. Texas gives a 100% exemption to disabled veterans with a service-connected total disability rating ^[7]. Many states offer partial exemptions that scale with the disability percentage.

Circuit breaker programs cap property taxes as a share of income. Maine's property tax fairness credit refunds property taxes that exceed roughly 4% of household income for most filers ^[10].

The common mistake is assuming you're already enrolled. In most states you have to apply, sometimes once, often on an annual or biannual cycle. Check with your county assessor. An unclaimed homestead exemption is money you're handing over every year for no reason.

What will property tax rates look like going into 2026?

Rates themselves move slowly. Assessed values move, and assessments usually lag the housing market by one to three years depending on how often your jurisdiction revalues.

The U.S. housing market peaked in 2021 and 2022, with national median prices climbing 15% to 20% in a single year in many markets. Plenty of jurisdictions are only now finishing reassessments built on those peak values. In states with slow reassessment cycles (some counties revalue only every four to six years), homeowners may see 2025 and 2026 assessments that still reflect 2022 prices, even as 2024 sale prices have softened in some markets.

That timing gap is when over-assessments show up most and when appeals win most often. If your home's assessed value jumped 20% or more in the past two years, pulling 2024 sales comps against a 2022-based assessment is a strong, often winning argument.

A few states have passed or are debating new caps in response to the price wave. Colorado's SB 23-108 and later legislation adjusted the residential assessment rate and capped revenue growth ^[6]. Texas voters approved Proposition 4 in November 2023, raising the homestead exemption and adding a 20% cap on appraised value increases for non-homestead residential properties ^[7]. If you're in a high-appreciation market, keep an eye on your state legislature for similar bills.

Frequently asked questions

What state has the highest property tax rate in 2025?

New Jersey has the highest effective property tax rate in the country at about 2.23% of home value, per Tax Foundation 2025 data. On a $450,000 home, that's roughly $10,000 a year. New Hampshire (2.09%) and Illinois (2.08%) sit right behind. Own property in any of these and a successful appeal moves more dollars than in a lower-rate state.

What state has the lowest property tax rate in 2025?

Hawaii has the lowest effective property tax rate at about 0.28% of home value. Alabama (0.41%) and Colorado (0.51%) come next. Hawaii's rate stays low because the state government funds most services directly. But Hawaii home prices are among the highest in the nation, so even 0.28% on an $800,000 home produces a $2,240 annual bill.

How does the Tax Foundation calculate effective property tax rates by state?

The Tax Foundation divides aggregate property taxes paid (from the U.S. Census Bureau's American Community Survey) by aggregate owner-occupied home values in each state. That captures the real tax burden as a share of actual market value, skipping the confusion of differing state assessment ratios and millage rates. The methodology is documented on their website and updated each year as new ACS data comes out.

Do property tax caps protect me from rising assessments?

Caps help existing long-term owners. California's 2% cap (Prop 13), Florida's 3% homestead cap (Save Our Homes), and Texas's 10% homestead cap all limit how fast assessed value can rise each year. But caps don't fix an over-assessment at the base. If the assessor inflated your value before the cap kicks in, you overpay for years. An appeal fixes the base number; a cap only controls future growth.

Can I appeal my property tax assessment without a lawyer?

Yes. The informal appeal in most counties needs nothing more than a written request, comparable sales data, and sometimes a short hearing. No legal training required. Contingency firms charge 25% to 50% of your savings for that same work. The forms live on your county assessor's website, comps are public, and most informal hearings run under 30 minutes. A lawyer mostly adds value in formal tax court.

What is a homestead exemption and how much does it save?

A homestead exemption reduces the taxable assessed value of your primary residence. Texas exempts $100,000 of value from school district taxes as of 2023. Florida exempts up to $50,000. Georgia's basic exemption is $2,000 off assessed value, though counties add more. You have to apply; enrollment isn't automatic in most states. An unclaimed exemption costs you real money every year you miss it.

How do I find my property's assessed value and check if it's wrong?

Go to your county assessor's website, search by address, and pull your property record card. Check square footage, bedroom and bathroom count, lot size, and condition rating against the real house. Then find three to five nearby homes that sold in the past 6 to 12 months for less than your assessed value. Those two steps, checking the data card and running comps, are the base of every winning appeal.

Which states have no property tax?

No state fully eliminates property tax on residential real estate. Searches for 'states with no property tax' usually mean states without a state-level property tax (most of them), where local governments still levy their own rates. A few states have very low rates, like Hawaii at 0.28%, but zero isn't an option for real estate anywhere in the U.S. For the full nuance, see our article on states with no property tax.

How often do states reassess property values?

It varies widely. Some jurisdictions reassess yearly; California does not, reassessing only at sale under Prop 13. Many states require reassessment every one to four years. Some rural counties revalue only every six to ten years. Frequency matters because a long gap lets your value drift far behind or far ahead of the market, creating both under-tax and over-tax situations depending on which way prices moved.

Does my state tax vehicles as personal property?

About 11 states levy an annual personal property tax on vehicles based on assessed value. Virginia, Missouri, North Carolina, Mississippi, and Connecticut are notable examples. Virginia's car tax can run $400 to $1,200 per vehicle per year depending on county and vehicle value. This is a separate system from real estate tax, with its own deadlines and appeal rights. Check your state's DMV or revenue department for current rates.

What happened to property tax rates after the 2021-2022 housing boom?

Rates didn't spike, but assessed values in many markets are now catching up to peak 2021-2022 prices just as sale prices soften. Homeowners who bought or were reassessed during the boom may hold assessments above current market value. That's when appeals succeed most. If your assessed value rests on 2022 peak comps but 2024 neighborhood sales came in lower, that gap is your appeal argument.

What is the average property tax bill in the U.S.?

The U.S. Census Bureau's American Community Survey puts the national median real estate tax near $2,800 a year for owner-occupied homes, though the figure shifts by year and data cut. High-value states pull it up: New Jersey median bills top $9,000. Low-rate states like Alabama average under $700. A median effective rate near 1.02% on a median home value near $270,000 lands around $2,750.

What is a circuit breaker property tax program?

A circuit breaker program caps property taxes as a percentage of a homeowner's income, then refunds or credits the excess. Maine's property tax fairness credit refunds taxes above roughly 4% of household income. About 34 states and D.C. run some form of circuit breaker, mostly for seniors or low-income households. Eligibility rules, income limits, and benefit amounts vary widely. Your state revenue department or assessor can tell you if you qualify.

How do I appeal my property tax assessment in a high-tax state like New Jersey or Illinois?

New Jersey wants a filing with your County Board of Taxation by April 1 in most years, and the process can escalate to Tax Court, which is more formal than most states. Illinois (especially Cook County) runs a multi-step process through the Board of Review before you reach the Property Tax Appeal Board or Circuit Court. Both states reward early prep, solid comps, and a clear written argument. Our state guides for New Jersey and Illinois walk through each step.

Sources

1. Tax Foundation, Property Taxes by State: Effective property tax rates by state, ranging from 0.28% (Hawaii) to 2.23% (New Jersey); national median near 1.02%
2. U.S. Census Bureau, American Community Survey: Aggregate property taxes paid and owner-occupied home values used to compute effective rates by state
3. California State Board of Equalization, Proposition 13: California caps annual assessment increases at 2% for existing owners under Proposition 13, California Constitution Article XIII A
4. Florida Department of Revenue, Property Tax Oversight: Florida caps homestead assessment increases at 3% or CPI (whichever is lower) under the Save Our Homes amendment; homestead exemption up to $50,000
5. Michigan Department of Treasury, Property Tax: Michigan caps annual assessment increases at 5% or the inflation rate under MCL 211.27a; Michigan Tax Tribunal appeal deadline is July 31
6. Colorado General Assembly, TABOR and SB 23-108: Colorado's TABOR (Colo. Const. Art. X, Sec. 20) limits property tax revenue growth; SB 23-108 adjusted residential assessment rates in response to appreciation
7. Texas Comptroller of Public Accounts, Property Tax: Texas homestead exemption raised to $100,000 of school district value; 10% annual cap on homestead appraised value increases under Tax Code Sec. 23.23; appeal deadline May 15 or 30 days from notice; 100% disabled veteran exemption
8. New York State Department of Taxation and Finance, Real Property Tax: New York caps property tax levy growth at 2% or CPI (lower) under Real Property Tax Law Sec. 3-c; Grievance Day varies by municipality
9. University of Chicago Harris School of Public Policy, Assessor Bias Study (Quinton et al., 2021): Study of Cook County found lower-value homes assessed at approximately double the effective rate of higher-value homes, demonstrating systematic assessment regressivity
10. Maine Revenue Services, Property Tax: Maine's property tax fairness credit refunds property taxes exceeding approximately 4% of household income; used as circuit breaker example
11. National Conference of State Legislatures, Property Tax: State-by-state overview of assessment, appeal, and exemption policies; used for appeal deadline reference
12. Cook County Assessor's Office: Cook County (Illinois) has a separate multi-step appeal process through the Board of Review before escalation to PTAB or Circuit Court; 30-day appeal window from assessment notice
13. Tax Foundation, Personal Property Taxes on Vehicles: Approximately 11 states levy annual personal property tax on vehicles; Virginia, Missouri, North Carolina, Mississippi, and Connecticut are key examples