What states have the highest property taxes in the US?

Last updated 2026-07-09

What states have the highest property taxes right now?

The five states with the highest property taxes are New Jersey, Illinois, Connecticut, New Hampshire, and Vermont. That order holds across the serious datasets, though exact rates drift a bit year to year depending on whether you measure median dollar bills or effective rates (taxes paid as a percentage of home value). Effective rate is the more honest comparison. It strips out the distortion of wildly different home prices.

The most reliable source for cross-state comparisons is the Lincoln Institute of Land Policy's 50-State Property Tax Comparison Study, which calculates effective rates on standardized home values so you're comparing apples to apples ^[1]. The Tax Foundation publishes annual state rankings built on U.S. Census Bureau data ^[2]. Both point to the same cluster of high-tax states.

Here's the table you need. Effective rates come from the Lincoln Institute study and Tax Foundation analysis of Census data. Dollar figures are median annual taxes paid on owner-occupied homes from the Census Bureau's American Community Survey ^[3].

Rank	State	Effective Rate	Median Annual Tax
1	New Jersey	2.23%	$9,476
2	Illinois	2.08%	$5,055
3	Connecticut	1.79%	$6,153
4	New Hampshire	1.77%	$6,036
5	Vermont	1.71%	$4,329
6	Texas	1.60%	$3,872
7	Wisconsin	1.59%	$3,472
8	Nebraska	1.57%	$2,939
9	New York	1.54%	$5,884
10	Rhode Island	1.52%	$4,483

Notice that Texas lands at number 6 with no state income tax. That's no accident. States that skip income taxes lean harder on property taxes to fund local government and schools ^[4].

For the other end of the spectrum, see our property tax ranking by state and states with no property tax guides.

What state has the highest property tax rate?

New Jersey. It's not close.

New Jersey's effective property tax rate runs roughly 2.23% of a home's assessed value, more than double the national average of about 1.07% ^[2]. On a $400,000 home, that's $8,920 a year before any exemptions. The state has owned the top spot in every major ranking for over a decade.

Why so expensive? A few reasons stack up. New Jersey has 564 separate municipalities, each running its own government and school system. That fragmentation drives up the cost of services, and property taxes are the main way to pay for them. Bergen County alone has 70 municipalities. Nobody consolidates, so overhead multiplies.

The New Jersey Division of Taxation says local property taxes are "primarily used to fund local government services and public education," with schools eating roughly 60 cents of every property tax dollar ^[5]. New Jersey sits near the top nationally in per-pupil school spending, and residents pay for it straight off their tax bills.

Illinois is the clear number two at roughly 2.08%. Cook County (Chicago and its suburbs) carries a lot of the weight, but downstate counties run high too. The state's pension funding hole has pushed local governments to hold rates up even as home values climbed.

Connecticut at 1.79% rounds out what most analysts call the top tier. Towns are the basic taxing unit there, not counties, and town budgets swing wildly. The rate in Greenwich looks nothing like the rate in Bridgeport.

Which states have the highest property taxes by total dollar bill?

Rate and dollar bill tell different stories. A state with a modest rate but sky-high home values can hand you a brutal bill.

By median annual tax paid, New Jersey still leads at $9,476. But Connecticut ($6,153), New Hampshire ($6,036), New York ($5,884), and Massachusetts ($5,091) all crack the top tier by dollar amount, partly because home prices in those states sit well above the national median ^[3].

New York is the clearest example of the rate-versus-dollar split. New York State's effective rate (1.54%) looks lower than Illinois or New Jersey, but a $750,000 home in Westchester County can carry a bill over $15,000 because the value is so high. Rate times value equals bill. The rate is one lever, not the whole machine.

Texas runs the reverse story in some markets. The effective rate is high (1.60%), but median home values in many Texas cities fall below coastal metros, so the median bill looks tamer than the rate suggests. In Austin and suburban Dallas, though, where home values surged after 2020, owners now catch both the high rate and higher values at once.

If you own in Texas, the How to Appeal Property Taxes in Texas: 2026 Protest Guide walks through the protest process in detail. Illinois homeowners should read How to Appeal Property Taxes in Illinois: Cook County and Beyond.

Why do some states have such high property taxes?

Several structural factors push a state into the high-tax tier. This matters because some are fixable at the individual level and some aren't.

Start with reliance on property taxes to fund public schools. States that push education funding to the local level end up with variable and often high rates. New Jersey, Illinois, Connecticut, and New Hampshire all fit the pattern. A Lincoln Institute analysis found property taxes fund roughly 36% of local government revenue nationally, but in some states that share tops 70% ^[1].

Next, no state income tax. New Hampshire and Texas both skip income taxes and make it up on property. The Lincoln Institute study put it plainly: "property taxes are the primary revenue source for local governments and school districts" in states that limit other taxes ^[1].

Then there's assessment practice. States that reassess often and near full market value produce higher nominal bills even when the rate is moderate. California caps assessment increases at 2% a year under Proposition 13, which keeps bills artificially low for long-term owners no matter the nominal rate.

Fragmented local government adds another layer. More governing units means more levies stacked on top of each other. In Illinois, one homeowner's bill can include levies from a county, a municipality, a school district, a community college district, a park district, a library district, and a sanitary district. Each one takes a slice.

Weak state-level circuit breakers finish the picture. Some high-tax states offer thin relief, especially for middle-income owners who don't qualify for senior or disability programs. That leaves the full rate landing on most households.

How do property tax rates vary within high-tax states?

State averages hide enormous county and city variation. This matters more than most homeowners think.

In New Jersey, municipal rates range from about 0.67% in Tavistock Borough (a tiny borough with few residents and a golf course) to over 4% in urban communities like Camden. The 2.23% state average is a blend across that huge spread ^[5].

In Illinois, Cook County's effective rate on residential property runs around 2.0% to 2.2% in Chicago and higher in some suburbs, while a few collar counties come in below 2%. Downstate counties in the 2% to 3% range aren't unusual either ^[6].

In New York, the gap between New York City (effective rate roughly 0.9% on residential condos and co-ops thanks to classification rules) and some Upstate and Long Island towns (effective rates above 2.5%) shows how local decisions override the state average. The How to Appeal Property Taxes in New York: Grievance Day Guide explains how the city's classification system works.

That within-state spread is why the smartest move is to look up your specific jurisdiction's effective rate rather than trust the state average. Your county assessor's website or your state's department of revenue usually publishes mill rates or effective rates by taxing district.

Are property taxes the same as effective tax rates shown in rankings?

No, and the difference trips people up constantly.

Your actual bill is assessed value times the mill rate, minus any exemptions you receive. The "effective rate" in most rankings is taxes paid divided by estimated market value. That's a useful comparison tool. It says nothing about what you personally pay if your assessment is wrong.

Assessments in many jurisdictions lag market value badly. If the assessor values your home at $320,000 but it's worth $280,000, you're paying tax on $40,000 that shouldn't exist. That's why fixing a bad assessment often matters more than which state you live in.

Exemptions pile on top. Most states offer homestead exemptions, senior exemptions, veteran exemptions, and sometimes income-based circuit breakers. New Jersey's ANCHOR program pays property tax relief of up to $1,500 for eligible homeowners and $450 for renters ^[5]. Live in a high-tax state and skip an exemption you qualify for, and you're overpaying by design.

For how assessed values work and where errors creep in, see our assessments explained coverage.

Which high-tax states give you the best tools to fight your bill?

This is where a high-tax state can work in your favor. High-tax states tend to run more formal, more accessible appeal processes, simply because more residents have a reason to use them.

New Jersey lets you appeal to the county board of taxation, and if the disputed value tops $1,000,000 you can go straight to the New Jersey Tax Court ^[5]. The filing deadline is April 1 most years (or 45 days from the assessment notice if that's later). The state also runs a well-developed comparable sales process a prepared homeowner can work through without a lawyer.

Illinois runs a two-stage system in most counties: the county assessor's office first, then the Board of Review. Cook County adds the Property Tax Appeal Board (PTAB) as a third level. Deadlines shift by township in Cook County, which breeds confusion, but the process itself is well documented ^[6].

Texas has some of the friendliest appeal rules in the country. The Texas Property Tax Code gives you the right to protest any assessed value, and informal hearings with the appraisal district often settle things before you ever face an Appraisal Review Board (ARB) ^[7].

New York's Grievance Day (a fixed annual date, usually the fourth Tuesday in May for most jurisdictions outside New York City) gives every homeowner a formal hearing ^[8].

Handling your own appeal in any of these states? TaxFightBack's DIY appeal kit walks you through the comparable sales analysis and the evidence package, without handing a contingency firm 25% to 40% of your first-year savings.

What states have lower property taxes that high-tax state residents compare against?

The national median effective rate is roughly 1.07% ^[2]. States well below that include Hawaii (0.32%), Alabama (0.37%), Colorado (0.50%), Nevada (0.52%), and South Carolina (0.56%). They get there different ways. Hawaii runs a broad general excise tax, Alabama collects an income tax, and Colorado passed the Gallagher Amendment limiting residential assessment ratios (though voters have since reworked that framework).

Curious about states that come closest to zeroing out property taxes? See what states don't have property tax and states with no property tax. The short version: no state fully eliminates property taxes, but a handful come close for certain property types or owner profiles.

For a side-by-side view of all 50 states, our property tax by state 2025 guide uses the most current Lincoln Institute and Census data.

Does a high property tax state automatically mean you're paying too much?

No. It means the baseline is high. You can overpay on top of that, or you can pay less than your neighbors if your assessment is accurate and you're claiming every exemption.

Overpayment is common. In many jurisdictions, a meaningful share of assessments carry errors large enough to justify an appeal. A 2020 University of Chicago analysis found Cook County assessments showed systematic regressivity, meaning lower-value properties were often assessed at a higher share of market value than higher-value ones ^[9]. That's an appeals opportunity hiding in the data.

The question is always the same: is your assessed value defensible given recent comparable sales? If your neighbor's identical house sold for $350,000 and you're assessed at $420,000, you have a case, whether you live in New Jersey or Iowa.

Here's how to check in about 15 minutes. Pull three to five recent sales (last 12 months) of homes like yours nearby, using your county assessor's website or a public records database. Calculate the sales-price-to-assessment ratio for each. If your ratio runs consistently higher than your neighbors', you likely have grounds to appeal. That comparison is the spine of your evidence package.

See property tax percentage by state for how effective rates get calculated state by state, which tells you whether your bill sits in the expected range before you decide to appeal.

How can homeowners in high-tax states reduce what they actually pay?

Three levers do the real work, and they work in any state.

Claim every exemption you qualify for. Homestead exemptions are the most commonly missed. In many states you have to apply; nobody applies it for you. Senior, veteran, and disability exemptions, agricultural exemptions if any of your land qualifies, and income-based circuit breakers all cut your taxable value or cap your bill. New Jersey's ANCHOR program alone is worth up to $1,500 a year for eligible homeowners ^[5]. Illinois's general homestead exemption cuts assessed value by $10,000 in Cook County ^[6]. These aren't small numbers.

Appeal your assessed value when comparable sales don't back it up. File your own appeal. The process is public, the deadlines are fixed, and success rates for prepared homeowners are real. You don't need a tax attorney or a contingency firm eating 30% of your savings for years. The TaxFightBack appeal kit gives you the comparable sales framework and the filing templates to do it yourself.

Watch for assessment increases and respond fast. Many states require you to appeal within 30 to 90 days of getting your assessment notice. Miss that window and you're locked in for the year. Set a calendar alert for when notices usually land in your county.

For New Jersey owners, the April 1 deadline kills more appeals than anything else. For Illinois, your township's reassessment schedule decides when your window opens. For Texas, the May 15 protest deadline (or 30 days from the notice, whichever is later) governs ^[7].

See also the How to Appeal Property Taxes in New Jersey: Tax Court Process and How to Appeal Property Taxes in Georgia: County-by-County Guide for state-specific playbooks.

What do the numbers look like in the lowest vs. highest property tax states?

The gap between top and bottom is staggering. A $400,000 home costs roughly $893 a year in Hawaii (0.32% effective rate) and roughly $8,920 in New Jersey (2.23% effective rate) ^[1][2][3]. That's an $8,027 annual difference on the same home value. Over a 30-year ownership run, compounded at even a modest savings rate, the property tax gap alone climbs into the hundreds of thousands of dollars.

That's why high-tax state homeowners have such a strong reason to get their assessments right. A 10% assessment error on a $400,000 New Jersey home costs you roughly $892 a year. In Hawaii, the same error costs you $89. The math rewards precision far more in high-tax states.

For a full state comparison, the states ranked by property tax guide ranks all 50 states by effective rate and median bill, with the Census Bureau data behind each number. The property tax by state 2024 guide holds the prior year's data if you want to track the trend.

Frequently asked questions

What state has the highest property tax rate in the US?

New Jersey has the highest effective property tax rate in the US at roughly 2.23% of home value, based on Lincoln Institute and Tax Foundation data. The median annual property tax bill in New Jersey is about $9,476, the highest in the nation by both rate and dollar amount. Illinois (2.08%) and Connecticut (1.79%) rank second and third.

Which states have the highest property taxes overall?

The top five states by effective property tax rate are New Jersey (2.23%), Illinois (2.08%), Connecticut (1.79%), New Hampshire (1.77%), and Vermont (1.71%). Texas ranks sixth at 1.60% despite having no state income tax. These rankings come from the Lincoln Institute of Land Policy's 50-State Property Tax Comparison Study and Tax Foundation analysis of Census Bureau data.

What state has the lowest property taxes?

Hawaii has the lowest effective property tax rate at roughly 0.32%, followed by Alabama (0.37%), Colorado (0.50%), Nevada (0.52%), and South Carolina (0.56%), according to Tax Foundation and Lincoln Institute data. Hawaii's low rate partly reflects its heavy reliance on a general excise tax for state revenue. No state eliminates property taxes entirely.

Why does New Jersey have such high property taxes?

New Jersey has 564 separate municipalities, each funding its own government and school system. That fragmentation multiplies administrative costs. Schools consume roughly 60% of every property tax dollar, and New Jersey ranks among the top states for per-pupil school spending. There's no assessment cap similar to California's Prop 13, so rising home values feed straight into rising bills.

Are property taxes in New York as high as in New Jersey?

New York's statewide effective rate (about 1.54%) is lower than New Jersey's (2.23%), but dollar bills in high-value areas like Westchester County regularly top $15,000 a year. New York City's residential rate is held to roughly 0.9% by its property classification system. Upstate and Long Island rates often run above 2.5%, which makes the state average misleading for individual homeowners.

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

Yes. Texas has an effective property tax rate of roughly 1.60%, sixth nationally. The state uses property taxes to make up for having no income tax. In fast-growing markets like Austin and suburban Dallas, rising home values plus that rate produce very large bills. Texas does offer a homestead exemption and caps annual assessment increases at 10% for homesteaded properties under state law.

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

Yes, and it's often more worth doing in a high-tax state because the dollar savings per percentage point of assessment reduction run larger. Most states allow annual appeals. You file by the stated deadline (April 1 in New Jersey, May 15 in Texas for most homeowners, the fourth Tuesday in May for most New York jurisdictions outside New York City) and provide comparable sales showing your assessment beats market value.

How is the effective property tax rate calculated?

Effective rate equals property taxes paid divided by the estimated market value of the home. Ranking organizations like the Lincoln Institute standardize the math by using a consistent home value across jurisdictions, which keeps high-price markets from looking artificially cheap. Your personal effective rate is your actual tax bill divided by your home's current market value, which may differ from the state or county average.

What exemptions can lower my property tax bill in a high-tax state?

The common ones are homestead exemptions (cutting assessed value for primary residences), senior citizen exemptions, veteran and disabled veteran exemptions, disability exemptions, and income-based circuit breakers that cap taxes as a share of income. In New Jersey, the ANCHOR program pays up to $1,500 to eligible homeowners. In Illinois, the general homestead exemption cuts assessed value by $10,000 in Cook County. Most require an application; they aren't automatic.

Do states with no income tax always have high property taxes?

Usually, but not always. Texas and New Hampshire, both no-income-tax states, rank in the top seven for effective property tax rates. Florida has no income tax and a moderate property tax rate around 0.89%, partly because its large tourist economy pumps out sales tax revenue. Alaska has no income tax and no statewide sales tax, funded largely by oil revenue, and its property tax rates vary widely by borough.

How often do property tax rates change?

Mill rates and local levies typically reset annually as local governments adopt their budgets. Assessed values may update annually or on a cycle (every 3 to 5 years in some states). When reassessments happen, rates sometimes drop to keep total revenue roughly flat, but that depends entirely on local decisions. In practice, fast-appreciating markets tend to produce higher bills even when stated rates hold steady.

Is it worth hiring a property tax consultant in a high-tax state?

It depends on your bill size and how much evidence gathering you'll do yourself. Contingency firms in high-tax states typically charge 25% to 40% of first-year tax savings, sometimes across multiple years. On a $9,000 New Jersey bill, a successful appeal saving 15% frees up $1,350 a year. A firm taking 35% for two years earns $945, leaving you with $1,755 net. Doing it yourself costs your time and filing fees, typically $25 to $150.

Where can I find my county's actual property tax rate?

Your county assessor's or county clerk's website is the primary source. Most publish the current mill rate or tax rate for each taxing district every year. Your state's department of revenue or department of taxation usually publishes aggregate data by county. The Lincoln Institute's 50-State Property Tax Comparison Study and the Tax Foundation's state property tax pages aggregate this data nationally for comparison.

What is the national average effective property tax rate?

The national average effective property tax rate on owner-occupied homes is about 1.07%, based on Tax Foundation analysis of U.S. Census Bureau American Community Survey data. That means the top five states (New Jersey at 2.23% down through Vermont at 1.71%) all run at least 60% above the national average. The median annual property tax bill nationally runs roughly $2,690.

Sources

1. Lincoln Institute of Land Policy, 50-State Property Tax Comparison Study: Property taxes fund roughly 36% of local government revenue nationally; states without income taxes rely more heavily on property taxes; effective rates calculated on standardized home values for cross-state comparison
2. Tax Foundation, Property Taxes by State: New Jersey effective rate approximately 2.23%, national average approximately 1.07%; state rankings by effective property tax rate
3. U.S. Census Bureau, American Community Survey, Selected Housing Characteristics: Median annual property taxes paid by state for owner-occupied homes; New Jersey median approximately $9,476
4. Tax Foundation, Facts and Figures: How Does Your State Compare?: States without income taxes compensate with heavier property taxes; Texas effective rate approximately 1.60%
5. New Jersey Division of Taxation, Property Tax: Local property taxes in New Jersey primarily fund local government and public education; schools consume roughly 60% of property tax revenue; ANCHOR program provides up to $1,500 for eligible homeowners; appeal deadline is April 1 most years
6. Illinois Department of Revenue, Property Tax: Illinois property tax system description; Cook County general homestead exemption reduces assessed value by $10,000; multi-level appeal process including Board of Review and PTAB
7. Texas Comptroller of Public Accounts, Property Tax: Texas Property Tax Code grants right to protest assessed value; informal hearings available; protest deadline May 15 or 30 days from notice, whichever is later; annual assessment increases on homesteaded property capped at 10%
8. New York State Department of Taxation and Finance, Property Owners: New York Grievance Day typically falls on the fourth Tuesday in May for most jurisdictions outside New York City; formal hearing process for assessment challenges
9. University of Chicago, Harris School of Public Policy, Reassessing the Ranks (Cook County assessment study): 2020 analysis found systematic regressivity in Cook County assessments, with lower-value properties assessed at a higher share of market value than higher-value properties
10. Hawaii Department of Taxation, General Information: Hawaii's low property tax rate (approximately 0.32% effective) partially reflects state reliance on general excise tax for revenue