States ranked by property tax: all 50 states compared (2025)

Last updated 2026-07-09

Why do property tax rates vary so much from state to state?

Property taxes are almost entirely a local government function. The state sets the rules, the county or municipality sets the rate, and the local assessor decides what your home is worth. That three-layer system means a house worth $400,000 in Trenton, New Jersey can carry a tax bill three to four times higher than a house worth $400,000 in Honolulu, even before you factor in exemptions.

Three things drive most of that variation. First, states that lean on property taxes to fund schools, roads, and local services push rates higher. Texas has no state income tax, so local governments squeeze the property base hard. Second, assessment ratios differ wildly. Some states assess at 100% of market value; others assess at 50%, 60%, or even 10%, so headline mill rates can fool you if you ignore the ratio. Third, exemption generosity matters. A state with a high nominal rate but a $50,000 homestead exemption can be cheaper in practice than a lower-rate state with no exemptions at all.

The cleanest way to compare states is the effective tax rate: annual tax paid divided by the property's actual market value. That's the number used throughout this article, and it comes from the Lincoln Institute of Land Policy's 50-State Property Tax Comparison Study, the most careful annual dataset available ^[1].

If your bill looks out of line with what neighbors pay, that's a signal worth acting on. The property tax ranking by state guide goes deeper on how to read your own state's numbers.

All 50 states ranked by effective property tax rate

The table below ranks all 50 states plus Washington D.C. by effective property tax rate on owner-occupied homes. Rates come from the Lincoln Institute of Land Policy 50-State Property Tax Comparison Study (2023 data, the most recent full-year release as of mid-2025) ^[1] and cross-checked against U.S. Census Bureau American Community Survey 5-year estimates ^[2]. Median home values are from the Census Bureau ^[2].

Small rounding differences exist between sources. Treat these as reliable approximations, not legally binding figures.

Rank	State	Effective Rate	Median Home Value	Est. Annual Tax on Median Home
1 (highest)	New Jersey	2.08%	$401,400	$8,349
2	Illinois	1.88%	$267,900	$5,037
3	Connecticut	1.79%	$336,500	$6,023
4	New Hampshire	1.77%	$340,600	$6,029
5	Vermont	1.71%	$296,700	$5,073
6	Wisconsin	1.61%	$231,400	$3,726
7	Texas	1.60%	$294,100	$4,706
8	Nebraska	1.54%	$205,600	$3,166
9	Michigan	1.48%	$207,900	$3,077
10	Ohio	1.41%	$206,200	$2,907
11	Pennsylvania	1.36%	$233,100	$3,170
12	Iowa	1.35%	$181,400	$2,449
13	Kansas	1.34%	$194,000	$2,600
14	Rhode Island	1.30%	$330,000	$4,290
15	New York	1.26%	$370,800	$4,672
16	South Dakota	1.22%	$202,100	$2,466
17	Maine	1.09%	$264,300	$2,881
18	Massachusetts	1.08%	$483,900	$5,226
19	Minnesota	1.07%	$293,400	$3,139
20	Missouri	0.97%	$199,400	$1,934
21	North Dakota	0.95%	$219,700	$2,087
22	Indiana	0.87%	$213,700	$1,859
23	Georgia	0.86%	$271,900	$2,338
24	Alaska	0.84%	$314,300	$2,640
25	Maryland	0.83%	$380,500	$3,158
26	Florida	0.83%	$338,100	$2,806
27	Oregon	0.82%	$392,700	$3,220
28	Mississippi	0.79%	$158,300	$1,251
29	Washington	0.78%	$444,400	$3,466
30	North Carolina	0.77%	$267,700	$2,061
31	Virginia	0.75%	$370,900	$2,782
32	Oklahoma	0.74%	$185,200	$1,370
33	Idaho	0.69%	$358,800	$2,476
34	Montana	0.68%	$349,100	$2,374
35	Kentucky	0.68%	$186,800	$1,270
36	Wyoming	0.66%	$285,500	$1,884
37	Tennessee	0.64%	$249,900	$1,599
38	West Virginia	0.62%	$130,600	$810
39	Arkansas	0.62%	$161,100	$999
40	New Mexico	0.62%	$229,600	$1,423
41	South Carolina	0.57%	$248,400	$1,416
42	Nevada	0.55%	$375,200	$2,064
43	Arizona	0.51%	$343,700	$1,753
44	Utah	0.50%	$420,700	$2,104
45	D.C.	0.50%	$601,000	$3,005
46	Delaware	0.47%	$321,400	$1,511
47	Louisiana	0.45%	$198,300	$892
48	Colorado	0.45%	$490,700	$2,208
49	Alabama	0.37%	$185,200	$685
50	Hawaii	0.26%	$669,200	$1,740

Note: A few states sit close enough in rate that their relative order shifts slightly depending on which year's data you pull. The rates above use the Lincoln Institute's 2023 figures ^[1]. The property tax by state 2025 article will update these as new Lincoln Institute data publishes.

High absolute bill vs. high rate: notice that Hawaii's median bill ($1,740 estimated) still stings even with the lowest rate, purely because home values run so high. Massachusetts homeowners pay over $5,000 a year on median homes despite a middling rate. That distinction matters when you're deciding whether to appeal.

Which states have the highest property taxes?

New Jersey ranks first, and it isn't close. Its effective rate of 2.08% ^[1] reflects an unusually high dependence on property taxes to fund public schools, which draw about 40% of their money from local levies. The state does offer a property tax deduction capped at $15,000 for homeowners and a rebate program (ANCHOR) that can return $1,000 to $1,750 to eligible homeowners, but those cushions don't move the state out of the top spot ^[3].

Illinois sits second at 1.88%, driven largely by the Chicago metropolitan area and a fragmented school-funding structure that leans hard on Cook County property revenue. Connecticut and New Hampshire round out the top four, both above 1.75%. Neither taxes wages through a broad income tax, so both lean on property to fund services.

Texas at 1.60% surprises many people. The state has no income tax and no state property tax, but local taxing units, school districts, cities, counties, and special districts all levy their own rates, and they stack. A Travis County homeowner in Austin can face a combined rate above 2% before exemptions. Texas offers a homestead exemption of at least $40,000 off school district taxable value, since raised to $100,000 under House Bill 3, plus a $100,000 over-65 exemption ^[4]. The base rate stays high anyway.

See the full breakdown in what states have the highest property taxes.

Which states have the lowest property taxes?

Hawaii is the lowest at 0.26% ^[1], but don't confuse low rate with low bill. Median home values in Hawaii top $669,000, so even that tiny rate generates a meaningful annual payment. The state also caps the rate on owner-occupied homes through its homeowner's exemption, which covers $100,000 to $200,000 of assessed value depending on the county ^[5].

Alabama at 0.37%, Louisiana at 0.45%, and Colorado at 0.45% follow. Alabama's low rate is partly structural. The state assesses residential property at just 10% of market value before applying the millage, so the effective rate stays low almost by design ^[6]. That's a clean example of why the stated mill rate alone misleads you.

Delaware and South Carolina also stay under 0.57%. South Carolina's owner-occupied assessment ratio is 4% of fair market value, one of the lowest ratios in the country, which mechanically produces low effective rates even when mill rates look high on paper.

States near zero are a different story. No state fully eliminates property tax on real estate, though some exempt certain classes of property. See states with no property tax and what states don't have property tax for the honest answer on exemptions that come close.

How do assessment ratios change what you actually pay?

The mill rate (or levy rate) is not your effective tax rate. The effective rate is: (assessed value / market value) × mill rate. If your state assesses at 50% of market value and has a 30-mill rate, your effective rate is 1.5%, not 3%.

Here's a concrete comparison of how assessment ratios distort nominal rates:

State	Assessment Ratio	Nominal Mill Rate (example)	Effective Rate Result
Alabama	10% (residential)	~7 mills	~0.07% at ratio level before local additions
South Carolina	4% (owner-occ.)	~300 mills	~1.2% nominal, ~0.57% effective
California	100% (but capped at 1% base + local bonds)	~1%	~0.70% effective
New Jersey	100%	~20+ mills avg	~2.08% effective

California deserves a side note. Proposition 13 (1978) caps the base levy at 1% of assessed value and limits annual assessment increases to 2% until the property sells ^[7]. That artificially suppresses effective rates for long-term owners but produces sticker shock for buyers who pay current market prices.

Assessment ratio is also the lever you pull in an appeal. If your home is assessed at $350,000 but its market value is $300,000, you're taxed on a number that's 16.7% too high. That's the argument you bring to the board of equalization, not a complaint about the tax rate itself. If you want to build that case yourself, TaxFightBack's DIY appeal kit walks you through pulling comps and formatting the evidence without hiring a contingency firm.

What is a property tax map by state and how do you read one?

A property tax map by state is a choropleth (color-shaded) map where darker or redder shading means higher effective rates. The Tax Foundation publishes one annually, the Lincoln Institute publishes one, and the Tax Policy Center publishes comparative data. None of these is an official government product. They're research tools.

When you're reading a property tax map by state, check four things before drawing conclusions. First, what metric is being mapped: effective rate, median bill, or nominal rate? Each tells a different story. Second, what year's data underlies it? Assessment cycles run 1-4 years behind sales, so a 2025 map may use 2022 or 2023 assessed values. Third, does it use statewide averages or county-level data? A map of property tax rates by state using statewide averages hides enormous county-to-county variation inside states like Texas, Illinois, and New York. Fourth, does it account for exemptions? A map based on gross tax before exemptions overstates what most homeowners actually pay.

The Lincoln Institute's 50-State study is the most careful source. It uses a representative sample of home values in each state's largest city and applies the actual assessment and rate rules, including exemptions for owner-occupants ^[1]. That approach comes closer to what a real homeowner pays than Census ACS self-reported data, though both are useful.

For personal property taxes on vehicles and business equipment, the picture is different and often not shown on standard real-estate maps. See personal property tax by state and car property tax by state for those rankings.

How do personal property tax rates by state differ from real estate taxes?

Personal property tax covers tangible movable assets: cars, boats, business equipment, and in some states even household furnishings. Real estate (real property) tax covers land and structures. They're legally and administratively separate in most states.

About 38 states tax some form of personal property. Virginia, Missouri, Mississippi, and Connecticut rank among the highest for vehicle personal property taxes. Virginia's rate varies by locality but averages near 4.20% of vehicle value annually ^[8]. That can add $500 to $1,500 per year per car on top of your real estate bill.

Eleven states have moved to eliminate or largely exempt personal property from individual taxation. Pennsylvania, New York, and Florida impose no personal property tax on individuals (though business equipment may still be taxed). States that do tax personal property typically use depreciation schedules, not current market value, so the tax on a four-year-old car runs lower than year one even if you paid more than the schedule assumes.

If you own vehicles in a high-rate personal property state and recently moved, you may be paying the tax twice during the transition. Check your state's domicile rules carefully. The vehicle property tax by state article has the state-by-state breakdown.

Do high property tax states offer more exemptions to offset the burden?

Sometimes, but rarely enough. New Jersey's ANCHOR benefit, launched in 2022, sends direct rebate checks of $1,000 to homeowners earning under $150,000 and $1,500 to those earning $150,000 to $250,000 ^[3]. Even after the rebate, the typical New Jersey homeowner still pays more than residents of any other state.

Illinois offers a homestead exemption that reduces equalized assessed value by $10,000 in Cook County (the General Homestead Exemption) and a Homestead Improvement Exemption that limits assessment increases from qualifying improvements for four years ^[9]. These help but don't lift Illinois out of the number-two spot.

Texas's changes under HB 3 (88th Legislature, 2023) raised the homestead exemption from $40,000 to $100,000 for school district taxes, which is the largest piece of most Texas property tax bills ^[4]. That's a real change. For a home assessed at $300,000 with a school district rate of 1%, it saves $600 per year.

The pattern: high-tax states tend to have larger exemption programs, but they rarely close the gap entirely. Low-tax states often have fewer exemptions because they need them less. The question that matters for any individual homeowner isn't what the state average is, it's whether your assessment is accurate, because that's the variable you can actually control. If you're in Illinois or New Jersey and your assessment runs 10-15% too high, you're paying that overage times 1.88% or 2.08% every single year until you fix it.

For state-specific appeal strategies, the how to appeal property taxes in Illinois and how to appeal property taxes in New Jersey guides cover deadlines, forms, and what evidence the boards actually want.

How has property tax burden changed over time, and where is it heading in 2025 and 2026?

Total property tax revenue collected by state and local governments reached $729 billion in fiscal year 2022, up from $547 billion in 2017, a 33% jump in five years ^[10]. The main driver is rising home values. When the market goes up, assessments follow, and without rate cuts the tax bill climbs automatically.

The post-2020 home price surge created an unusual squeeze. The S&P CoreLogic Case-Shiller national home price index rose roughly 45% between early 2020 and mid-2023 ^[11]. Because most states reassess on 1-4 year cycles, the full assessment impact landed in 2022-2024 tax bills, which is why so many homeowners got blindsided by large increases.

In 2024 and 2025, a handful of states responded with legislation. Texas's HB 3 capped school district levy growth ^[4]. Florida's Save Our Homes cap limits increases on homesteaded property to 3% per year or the Consumer Price Index, whichever is lower ^[12]. Colorado passed reforms in 2023 (SB 23-303) that temporarily cut assessment rates after its Gallagher Amendment repeal produced unexpected revenue jumps.

Heading into 2026, watch the states where assessments are still catching up to the 2022-2023 price spike. Georgia, Idaho, Montana, and South Carolina have all seen large value increases with assessments rolling in on multi-year cycles. Homeowners in those states who haven't checked their assessment recently may be sitting on an overage they don't know about.

For year-specific data and deadline tables, see property tax by state 2024 and property tax by state 2025.

What's the difference between the state property tax rate and what your county charges?

Most states don't levy a state-level property tax at all. The tax is almost entirely a local instrument. When you see a statewide average, it's the average of hundreds or thousands of local rates, not a rate set in a state capitol.

A few exceptions exist. Michigan levies a state education tax of 6 mills on all taxable property statewide ^[13]. Vermont has a statewide education property tax, though rates vary by a municipality's spending. New Hampshire's state education property tax is $1.00 per $1,000 of assessed value ^[14].

In Texas, the state itself levies zero property tax. Texas Constitution Article VIII, Section 1-e prohibits it. Every dollar of your Texas property tax bill comes from a city, county, school district, or special district ^[4].

This distinction matters when you're researching your own situation. A state map of property taxes gives you a rough frame. Your actual rate sits on your county or city tax bill, set by your local taxing authorities, and it can differ a lot from the statewide average. Cook County, Illinois residents face effective rates roughly double the statewide Illinois average in some townships. Upstate New York rates can exceed 2.5% while downstate suburban rates sit closer to 1.5%.

If you want county-level detail, washington county mn property tax and shelby county property tax show how county-specific numbers differ from state averages. The property tax percentage by state article also unpacks how the statewide figure gets calculated.

Should you appeal your property tax assessment, and how do you start?

Appeal if your assessed value is higher than what you could realistically sell the home for today. That's the core test. The effective tax rate your state charges has nothing to do with whether your individual assessment is wrong. An assessment can be inflated in a low-tax state just as easily as a high-tax one.

The appeal process follows the same basic structure in most states. File a protest or grievance by a deadline (usually 30-90 days after assessment notices go out), present evidence that comparable sales support a lower value, and wait for a decision from a local review board. If the board denies you, most states allow a further appeal to a state tax court or tribunal.

The evidence that works is simple. Three to five recent sales of homes similar to yours in size, age, lot size, and neighborhood, all priced below your assessed value. The assessor's office used sales data to set your value. You're just showing them better or more current data. No attorney needed for the first level of appeal in the vast majority of states.

State-specific guides cover the exact forms and deadlines: how to appeal property taxes in Texas, how to appeal property taxes in Florida, how to appeal property taxes in Georgia, and how to appeal property taxes in New York each walk through the state's specific timeline.

If you want a single system that works across states, TaxFightBack's DIY appeal kit gives you the comp-selection framework, the comparable-sales grid, and the protest letter template so you keep 100% of any reduction rather than sharing it with a contingency firm.

Frequently asked questions

Which state has the highest property taxes in the U.S.?

New Jersey has the highest effective property tax rate at roughly 2.08% of home value, according to the Lincoln Institute of Land Policy's 2023 50-State Property Tax Comparison Study. On a median-priced New Jersey home of about $401,400, that works out to approximately $8,349 per year before any rebates. Illinois ranks second at 1.88%, and Connecticut third at 1.79%.

Which state has the lowest property taxes?

Hawaii has the lowest effective property tax rate at about 0.26%. But because median home values in Hawaii exceed $669,000, the typical annual bill still approaches $1,740. Alabama ranks second-lowest at 0.37%, helped by the state's 10% residential assessment ratio, which means homes are taxed on just 10 cents of every dollar of market value before the mill rate applies.

Are there any states with no property tax at all?

No state fully eliminates property tax on real estate. Every state taxes real property at some level. Some states exempt certain classes (100% disabled veterans in several states, or agricultural land under current-use programs), but no state offers a blanket exemption for all homeowners. See the states with no property tax article for the closest cases and how broad veteran exemptions work.

How is the effective property tax rate calculated?

Effective rate equals annual property tax paid divided by the property's actual market value. So if you pay $4,000 per year on a home worth $300,000, your effective rate is 1.33%. This beats the nominal mill rate because it accounts for assessment ratios. A state that assesses at 50% of value and charges 30 mills has a 1.5% effective rate, not 3%.

Does California really have low property taxes given its high home prices?

Yes, its effective rate is low, roughly 0.70%, because Proposition 13 (1978) caps the base tax rate at 1% of assessed value and limits annual assessment increases to 2% until the home sells. Long-term owners pay taxes on a much lower assessed value than current market price. A buyer paying $1.2 million today will pay taxes on that full purchase price, often producing a real dollar bill over $10,000.

Do personal property taxes on cars stack on top of real estate property taxes?

Yes, in the roughly 38 states that levy personal property tax, vehicle taxes are separate from real estate taxes and arrive as a distinct annual bill. Virginia, Missouri, and Connecticut rank among the highest for vehicle personal property taxes. Virginia's average effective vehicle rate is near 4.20% of assessed vehicle value annually. Eleven states impose no personal property tax on individuals.

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

Texas funds schools and local services almost entirely through local property levies because the state constitution (Article VIII, Section 1-e) prohibits a state property tax. Multiple taxing units, school districts, counties, cities, and special districts all stack their rates. The result is effective rates near 1.60% statewide and above 2% in some urban counties before exemptions. HB 3 (2023) raised the homestead exemption to $100,000 for school taxes.

How often do property assessments update, and does it vary by state?

Reassessment frequency varies dramatically. Some states reassess annually (California's method is annual but value-capped). Others reassess every 1-4 years; New York City reassesses annually for large properties but less often for small homes. Some Southern states go longer between full reassessments. Infrequent reassessment means your current bill may still reflect 2020 or 2021 values, which could cut either way depending on market direction.

Can you appeal your property taxes even in a low-tax state?

Yes. The effective state rate has nothing to do with whether your individual assessment is accurate. An assessor in Alabama or Hawaii can overvalue your home just as easily as one in New Jersey. The standard for appeal is whether the assessed value exceeds market value, not whether the tax rate seems high. Every state has a formal appeal process, and the first level typically doesn't require an attorney.

What's the difference between a property tax exemption and a property tax appeal?

An exemption reduces your taxable value by a fixed dollar amount or percentage before the rate applies, such as a $50,000 homestead exemption. You apply once and it renews automatically in most states. An appeal challenges the assessor's estimate of your home's market value. You file annually or after each reassessment. Both can lower your bill, and you can do both at once.

How much can a successful property tax appeal save?

It depends entirely on how far over market value your assessment sits and what your local rate is. A $30,000 reduction in assessed value saves $480 per year in a 1.6% effective-rate state or $624 per year in a 2.08% state. Multiply by however many years until the next reassessment, and the cumulative saving can top $2,000 on a modest overage. Nobody has reliable national averages on typical appeal savings; outcomes vary too much by local board.

Do property tax rates change year to year, or are they stable?

Local governing bodies set mill rates annually as part of the budget process. Rates can and do change every year. When home values rise sharply, some jurisdictions lower the mill rate to hold total revenue flat (a rollback rate). Others keep the rate and bank the extra revenue. Texas requires local governments to hold a voter-approval election if they want more than a 3.5% revenue increase from property taxes.

Is it worth hiring a property tax consultant or can I appeal myself?

For a residential first-level appeal, the process is simple enough that most homeowners can handle it themselves with the right comparable-sales data. Contingency firms typically charge 25-40% of the first year's savings, which is a big cost on a successful appeal. Hiring one makes more sense if your property is commercial, unusual, or if your case reaches tax court and involves legal arguments rather than simple comp evidence.

What is a property tax map by state, and which one is most accurate?

A property tax map by state is a color-coded visualization showing relative effective rates across the country. The Lincoln Institute of Land Policy's annual 50-State Property Tax Comparison Study produces the most careful underlying data, using actual assessment rules and exemptions in representative cities. The Tax Foundation also publishes an annually updated map. Both are research tools, not legal references; your local assessor's office determines your actual rate.

Sources

1. Lincoln Institute of Land Policy, 50-State Property Tax Comparison Study: Effective property tax rates by state, ranked from New Jersey (2.08%) to Hawaii (0.26%), based on 2023 data
2. U.S. Census Bureau, American Community Survey 5-Year Estimates: Median home values and property tax amounts paid by state
3. New Jersey Division of Taxation, ANCHOR Program: New Jersey ANCHOR benefit amounts of $1,000-$1,750 for eligible homeowners
4. Texas Legislature Online, House Bill 3 (88th Legislature, 2023): Texas raised the homestead exemption to $100,000 for school district taxes under HB 3 (2023)
5. Hawaii Department of Taxation, Real Property Tax Information: Hawaii's homeowner exemption covers $100,000-$200,000 of assessed value depending on county
6. Alabama Department of Revenue, Property Tax Division: Alabama assesses residential property at 10% of fair market value
7. California Board of Equalization, Proposition 13 Overview: Proposition 13 caps the base property tax rate at 1% of assessed value and limits annual assessment increases to 2%
8. Virginia Department of Taxation, Personal Property Tax Rates: Virginia's vehicle personal property tax rate averages near 4.20% of vehicle value annually
9. Cook County Assessor's Office, Homestead Exemptions: Illinois General Homestead Exemption reduces equalized assessed value by $10,000 in Cook County
10. Urban Institute, State and Local Finance Initiative, Property Tax Revenue Data: Total U.S. property tax revenue reached $729 billion in fiscal year 2022, up from $547 billion in 2017
11. S&P CoreLogic Case-Shiller, National Home Price Index: National home prices rose roughly 45% between early 2020 and mid-2023
12. Florida Department of Revenue, Property Tax Oversight, Save Our Homes: Florida's Save Our Homes cap limits annual assessment increases on homesteaded property to 3% or CPI, whichever is lower
13. Michigan Department of Treasury, State Education Tax: Michigan levies a statewide State Education Tax of 6 mills on all taxable property
14. New Hampshire Department of Revenue Administration, Property Taxes: New Hampshire's statewide education property tax rate is $1.00 per $1,000 of assessed value