Key Takeaways:
- Property taxes assist fund important public providers and are primarily based on the assessed worth of property, not what you paid for it.
- New Jersey (1.88%), Illinois (1.88%), Connecticut (1.54%), Vermont (1.51%), and New Hampshire (1.50%) have the best property tax charges within the nation.
- Hawaii (0.29%), Alabama (0.37%), Utah (0.48%), Arizona (0.48%), and South Carolina (0.49%) have the bottom property tax charges.
Shopping for a house isn’t simply concerning the buy worth. You’ll additionally have to funds for ongoing prices like property taxes, which might differ broadly relying on the place you reside. Two houses with related values can include very completely different tax payments primarily based on state and native charges.
Under, we break down property taxes by state so you possibly can evaluate the place prices are highest and the place you would possibly pay much less over time.
What are property taxes?
Property taxes are taxes owners pay primarily based on the assessed worth of their property. This is applicable to all sorts of actual property, together with main residences, funding properties, and business buildings.
Your native tax assessor calculates your property tax primarily based on strategies outlined by state and native legal guidelines. For those who itemize deductions, property taxes could also be deductible in your federal tax return.
What do property taxes pay for?
Property taxes are a significant income for native governments. They assist pay for issues like colleges, public transportation, hearth departments, infrastructure, and different essential public providers and authorities bills.
Property taxes by state
Understand that property tax charges can differ considerably inside the similar state. What you in the end pay is dependent upon your county or metropolis’s particular price and your house’s assessed worth. The figures beneath present statewide averages primarily based on probably the most latest knowledge accessible; your precise tax invoice could differ. Efficient property tax charges replicate 2024 knowledge (the latest accessible), whereas median sale costs are from February 2026 Redfin knowledge.
State |
Efficient Property Tax Price (2024) |
Median Sale Worth (February 2026) |
Estimated Annual Property Tax |
| New Jersey | 1.88% | $539,800 | $10,148 |
| Illinois | 1.88% | $298,600 | $5,614 |
| Connecticut | 1.54% | $421,900 | $6,497 |
| Vermont | 1.51% | $412,200 | $6,224 |
| New Hampshire | 1.50% | $484,000 | $7,260 |
| Nebraska | 1.44% | $300,800 | $4,332 |
| Texas | 1.40% | $333,800 | $4,673 |
| Iowa | 1.33 | $239,100 | $3,180 |
| Wisconsin | 1.32 | $322,400 | $4,256 |
| Ohio | 1.31 | $253,000 | $3,314 |
| New York | 1.30 | $597,400 | $7,766 |
| Pennsylvania | 1.26 | $293,100 | $3,693 |
| Kansas | 1.21 | $286,900 | $3,471 |
| Michigan | 1.19 | $259,900 | $3,093 |
| Rhode Island | 1.12 | $500,300 | $5,603 |
| Massachusetts | 1.00 | $597,700 | $5,977 |
| Minnesota | 1.00 | $348,100 | $3,481 |
| South Dakota | 1.00 | $327,200 | $3,272 |
| Maine | 0.98 | $372,400 | $3,650 |
| Alaska | 0.94 | $397,700 | $3,738 |
| Maryland | 0.92 | $427,000 | $3,928 |
| North Dakota | 0.92 | $319,200 | $2,937 |
| Missouri | 0.89 | $270,900 | $2,409 |
| Oregon | 0.81 | $499,500 | $4,046 |
| Georgia | 0.79 | $368,900 | $2,914 |
| Oklahoma | 0.79 | $250,000 | $1,975 |
| Florida | 0.78 | $413,200 | $3,223 |
| Virginia | 0.78 | $449,200 | $3,504 |
| Indiana | 0.76 | $261,600 | $1,988 |
| Washington | 0.75 | $625,000 | $4,688 |
| Kentucky | 0.74 | $270,200 | $1,999 |
| California | 0.70 | $820,500 | $5,744 |
| North Carolina | 0.66 | $388,400 | $2,563 |
| New Mexico | 0.63 | $373,200 | $2,351 |
| Montana | 0.61 | $538,200 | $3,283 |
| District of Columbia | 0.60 | $590,000 | $3,540 |
| Mississippi | 0.58 | $260,400 | $1,500 |
| Arkansas | 0.56 | $263,600 | $1,476 |
| Louisiana | 0.55 | $260,400 | $1,432 |
| Delaware | 0.54 | $352,000 | $1,901 |
| Wyoming | 0.53 | $414,300 | $2,196 |
| West Virginia | 0.51 | $241,000 | $1,229 |
| Colorado | 0.50 | $593,000 | $2,965 |
| Idaho | 0.50 | $478,200 | $2,391 |
| Nevada | 0.50 | $461,200 | $2,306 |
| South Carolina | 0.49 | $376,000 | $1,842 |
| Tennessee | 0.49 | $386,400 | $1,893 |
| Arizona | 0.48 | $447,100 | $2,146 |
| Utah | 0.48 | $557,700 | $2,677 |
| Alabama | 0.37 | $289,600 | $1,072 |
| Hawaii | 0.29 | $755,900 | $2,192 |
Property taxes by state FAQs
Which states have the bottom property tax funds?
The next states have the bottom estimated property tax funds:
- Alabama ($1,072)
- West Virginia ($1,229)
- Louisiana ($1,432)
- Arkansas ($1,476)
- Mississippi ($1,500)
Which states have the best property tax funds?
Listed below are the states the place you possibly can anticipate to pay probably the most in property taxes:
- New Jersey ($10,148)
- New York ($7,766)
- New Hampshire ($7,260)
- Connecticut ($6,497)
- Vermont ($6,224)
How are property taxes calculated?
Your annual property tax funds are decided by your house’s assessed worth, which can differ from the acquisition worth. Native assessors decide this worth utilizing market knowledge and state-specific formulation, then apply the native tax price to calculate your complete.
Actual property tax vs. property tax: what’s the distinction?
Property taxes and actual property taxes typically consult with the identical factor. The IRS makes use of the time period “actual property tax,” whereas native governments and counties extra generally use “property tax.”
Some confusion could come up on the subject of private property taxes. These apply to movable property, like automobiles and boats, enterprise gear, and livestock, however don’t embody actual property.
Do property tax exemptions exist?
Sure owners could qualify for property tax exemptions or reductions, relying on state and native applications. Frequent teams which may be eligible embody:
- Veterans
- Aged owners
- Owners with disabilities
- Low-income owners
