06/09/2026
Property tax rates: Where homeowners pay the most and least
Find out how local funding, assessment methods and values shape annual bills across the country
Property tax is a major expense for homeowners. (Getty Images)
Property tax is a major expense for homeowners. (Getty Images)
By Dave Hansen
Jun 4, 2026
101 Views
Key takeaways
Property tax rates by state range from 0.29% in Hawaii to 1.88% in Illinois and New Jersey. The national average effective rate is 0.89%.
State funding models, assessment methods, exemptions and local government structure drive the differences.
Homebuyers should check local rates, understand available exemptions and use tools like the Homes.com mortgage calculator to estimate their total tax burden before purchasing.
Property tax rates can make a big difference in what homeowners pay each year.
Some homeowners pay nearly 2% of a home's value, while others pay less than 0.30%. Here's a look at the states with the highest and lowest property tax rates, why these differences exist and what buyers should know before purchasing a home.
Effective property tax rate
One way to compare real estate taxes is to consider the effective property tax rate. A state's effective property tax rate is the total property taxes paid divided by the total value of homes, expressed as a percentage. This rate reflects what homeowners actually pay relative to their property's value, providing a clearer window for comparison than sizing up dollar amounts or statutory tax rates.
According to the National Association of Home Builders, the national effective property tax rate in 2024 was 0.89%, or $8.88 per $1,000 of home value. Rates tend to be set locally, so state figures reflect averages across many counties and cities.
Homeowners typically pay property taxes as part of their monthly mortgage. However, homeowners who choose the mortgage option may not notice a tax increase, as it is rolled into the payment. Some choose to pay all at once when they receive their annual property tax bill from their taxing authority.
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See a map showing the effective property tax rates by states
Learn about the property taxes and other long-term and hidden costs of homeownership
Which states have the highest property tax rates?
The top 10 states by effective property tax rate in 2024, according to the Tax Foundation, are:
Rank State Effective Rate (%)
1 New Jersey 1.88
2 Illinois 1.88
3 Connecticut 1.54
4 Vermont 1.51
5 New Hampshire 1.50
6 Nebraska 1.44
7 Texas 1.40
8 Ohio 1.36
9 Iowa 1.33
10 Wisconsin 1.32
Which states have the lowest property tax rates?
Property tax rates vary widely by state, and they can be much lower in some regions. The bottom 10 states by effective property tax rate in 2024, according to the Tax Foundation, are:
Rank State Effective Rate (%)
50 Hawaii 0.29
49 Alabama 0.37
48 Arizona 0.48
47 Utah 0.48
46 South Carolina 0.49
45 Idaho 0.50
44 Colorado 0.50
43 Nevada 0.50
42 West Virginia 0.51
41 Tennessee 0.52
Why do property tax rates differ so much between states?
Property tax rates by state are shaped by several factors, according to the Tax Foundation:
Funding structure: States without an income tax (Texas, New Hampshire, Florida, Nevada, Washington, Tennessee, South Dakota, Wyoming, and Arkansas) often rely more on property taxes, though other revenue sources, such as tourism or oil, can offset this reliance.
Assessment practices: Some states tax at full market value, others use assessment ratios. For example, South Carolina taxes owner-occupied homes at 4% of market value.
Local control: Property taxes are set by local jurisdictions. States that give more authority to local governments tend to have higher rates because more services are funded locally.
Caps and limitations: Some states limit how fast assessed values or rates can grow. California's Proposition 13, Colorado's Taxpayer's Bill of Rights and Nevada's tax caps limit how high rates can go.
Exemptions: Homestead exemptions, veteran exemptions and senior freezes reduce what homeowners pay. These vary widely by state.
Home values: High home values can produce high tax bills even at low rates (Hawaii). Low home values can produce low bills even at moderate rates (West Virginia).
Urban vs. rural: Urban areas tend to pay more because of higher home values and higher government service costs. Rural areas pay less.
Consider a home valued at $350,000. In Illinois, at an effective rate of 1.88%, the annual property tax bill would be about $6,580. In Hawaii, at 0.29%, the same home would produce a tax bill of about $1,015.
Related article:
What factors drive home values?
What should homebuyers consider about property tax rates?
Property tax rates affect your monthly mortgage payment and your long-term costs. Here are key points to keep in mind:
Check the specific county and city rate, not just the state average.
A state with a low property tax rate may have high income or sales taxes, and vice versa.
Ask about exemptions you may qualify for, such as homestead, veteran or senior.
Use the mortgage calculator to see how property taxes affect your monthly payment.
Property taxes can increase after you buy through reassessment or mill rate changes.
Related article:
Learn about tax rate changes and how local governments assess and reassess the value of properties.
Frequently asked questions
Here are answers to common questions about property tax rates by state.
Do any states have no property tax?
No. All 50 states levy property taxes. However, effective rates range from 0.29% in Hawaii to 1.88% in Illinois and New Jersey.
How do I find the property tax rate for a specific address?
Check your county assessor's website or local tax records. Many counties provide online tools to search by address and view current tax rates and bills.
Can my property taxes change after I buy a home?
Yes. Local governments can adjust tax or mill rates, and your home's assessed value can change during reassessment. Some states limit annual increases, but most allow periodic changes.
Are there ways to lower my property tax bill?
Many states and local governments offer homestead exemptions for primary residences, as well as exemptions for veterans, seniors and disabled homeowners. You can also appeal your property's assessed value if you believe it is too high. Check with your county assessor's office for details.
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