Two families buy identical $400,000 houses. One lands in Illinois, the other in Arizona. Same mortgage, same insurance, same paint color. A year later, the Illinois family owes roughly $5,500 more in property tax, based on average statewide rates.
That gap is why property tax by state matters more than most buyers expect. This guide ranks all 50 states by effective rate, explains why a low rate does not always mean a low bill, and shows you how to estimate the real number for your own address.
Which States Have the Highest and Lowest Property Taxes?
Illinois has the highest effective property tax rate at 1.79%, followed by New Jersey at 1.68%, with Hawaii the lowest at 0.31%. Vermont (1.40%), Nebraska (1.38%), Connecticut (1.36%) and New Hampshire (1.35%) complete the top six. Alabama (0.37%), Arizona (0.43%), Idaho (0.43%) and South Carolina (0.44%) sit near the bottom.
These rates come from 2024 American Community Survey data, the latest full dataset I could verify for this comparison. Your own bill depends on your county, your home's assessed value, local levies and any exemptions you qualify for.
Key Takeaways
- Highest rates: Illinois, New Jersey, Vermont, Nebraska, Connecticut and New Hampshire.
- Lowest rates: Hawaii, Alabama, Arizona, Idaho, South Carolina and Utah.
- Rate is not bill. Hawaii has the lowest rate but very expensive homes. New Jersey has the highest average bill.
- County matters as much as state. Two counties in the same state can differ by a full percentage point or more.
- Two respected datasets disagree on exact numbers. We explain why below, so you do not get misled by mismatched rankings.
How This 2026 Ranking Works (and Why the Data Year Matters)
The headline says 2026, but the underlying statistics come from 2024. That is normal. Property tax data is collected, surveyed and published with a lag of a year or more.
Method used here: The effective rate is the total real estate tax paid on owner-occupied homes divided by the total value of those homes, using Census Bureau tables B25090 (taxes paid) and B25082 (home values) from the 2024 ACS 1-year estimates. The National Association of Home Builders uses the same aggregate approach in its Property Taxes by State, 2024 analysis, and it also names Illinois as highest and Hawaii as lowest.
Three limits you should know about:
- Owner-occupied homes only. Rentals, commercial property and industrial property are excluded.
- Survey estimates carry margins of error. States with nearly identical rates, such as Arizona and Idaho at 0.43%, cannot be ranked with certainty.
- The percentages are calculated from Census inputs. The Census Bureau publishes the raw tables, not a ready-made ranking.
Data last verified: October 28, 2026. The Census Bureau may have posted newer ACS estimates since. Check the Census ACS page before relying on any single figure.
Effective Rate vs. Statutory Rate vs. Annual Bill
Most confusion about property tax comes from mixing three different measures.
| Measure | What it tells you | Best used for |
|---|---|---|
| Effective rate | Taxes paid as a share of home value | Comparing states fairly |
| Statutory (millage) rate | The nominal rate set by local governments | Reading a local tax bill |
| Annual bill | The dollars actually owed | Budgeting a purchase |
A millage rate is applied to the assessed value, which may be only a fraction of market value in some states. That is why a state with a "high" statutory rate can still have a modest effective rate. For plain-language definitions of assessed value, exemptions and levies, our tax terms glossary is a quick reference.
Top 10 States With the Highest Property Taxes
| Rank | State | Effective rate | Modeled tax on a $300,000 home* |
|---|---|---|---|
| 1 | Illinois | 1.79% | $5,380 |
| 2 | New JerseyNew Jersey | 1.68% | $5,030 |
| 3 | Vermont | 1.40% | $4,200 |
| 4 | Nebraska | 1.38% | $4,140 |
| 5 | Connecticut | 1.36% | $4,070 |
| 6 | New Hampshire | 1.35% | $4,050 |
| 7 | Ohio | 1.28% | $3,830 |
| 8 | Iowa | 1.25% | $3,750 |
*Modeled estimate: state effective rate × $300,000, rounded to the nearest $10. It is not a quote for any specific home.
Nine of the ten states are in the Midwest or Northeast. Texas is the only Southern state to crack the list.
Why these states land at the top
New Hampshire and Texas lean on property tax because they skip other taxes. New Hampshire has no general income tax or statewide sales tax, and Texas has no state income tax, so local governments rely heavily on property taxes to fund schools and services. If you are weighing that trade-off, our guide to states with no income tax in 2026 shows the other side of the ledger.
Illinois and New Jersey fund schools locally. Local school districts depend heavily on property tax in both states, and dense suburban markets keep levies high. Both are also the only states above 1.6% in this ranking.
Connecticut, Vermont and Nebraska each have their own twist, from town-level funding in New England to rising valuations in the Plains. Local reliance on property tax is the common thread.
Top 10 States With the Lowest Property Taxes
| Rank (lowest first) | State | Effective rate | Modeled tax on a $300,000 home* |
|---|---|---|---|
| 1 | Hawaii | 0.31% | $930 |
| 2 | Alabama | 0.37% | $1,110 |
| 3 | Arizona | 0.43% | $1,280 |
| 4 | Idaho | 0.43% | $1,300 |
| 5 | South Carolina | 0.44% | $1,310 |
| 6 | Utah | 0.45% | $1,360 |
| 7 | Tennessee | 0.46% | $1,380 |
| 8 | West Virginia | 0.48% | $1,450 |
Why these states rank low
Low-rate states usually do one of three things. They fund government through other revenue, such as Hawaii's general excise tax or Nevada's gaming and sales taxes. They cap how fast taxable value can grow. Or they have modest home values that keep the denominator small.
The South and Mountain West dominate this list. If you are comparing relocation options, pair this table with our state income tax guide for 2026, because a low property tax can come with a higher tax elsewhere.
Property Tax Rates in All 50 States (2026 Ranking)
Rank 1 is the highest effective rate. All figures use the 2024 ACS method described above.
| Rank | State | Effective rate | Modeled tax on $300,000* |
|---|---|---|---|
| 1 | Illinois | 1.79% | $5,380 |
| 2 | New Jersey | 1.68% | $5,030 |
| 3 | Vermont | 1.40% | $4,200 |
| 4 | Nebraska | 1.38% | $4,140 |
| 5 | Connecticut | 1.36% | $4,070 |
| 6 | New Hampshire | 1.35% | $4,050 |
| 7 | Ohio | 1.28% | $3,830 |
| 8 | Iowa | 1.25% | $3,750 |
| 9 | Texas | 1.24% | $3,730 |
| 10 | New York | 1.23% | $3,680 |
| 11 | Kansas | 1.20% | $3,600 |
| 12 | Wisconsin | 1.19% | $3,560 |
| 13 | Pennsylvania | 1.14% | $3,410 |
| 14 | Michigan | 1.13% | $3,390 |
| 15 | South Dakota | 1.00% | $2,990 |
| 16 | Rhode Island | 1.00% | $2,990 |
| 17 | Minnesota | 0.99% | $2,960 |
| 18 | Massachusetts | 0.95% | $2,840 |
| 19 | North Dakota | 0.94% | $2,820 |
| 20 | Maine | 0.90% | $2,710 |
| 21 | Maryland | 0.90% | $2,710 |
| 22 | Alaska | 0.90% | $2,700 |
| 23 | Missouri | 0.85% | $2,550 |
| 24 | Oregon | 0.79% | $2,370 |
| 25 | Oklahoma | 0.78% | $2,340 |
| 26 | Georgia | 0.77% | $2,300 |
| 27 | Florida | 0.76% | $2,280 |
| 28 | Indiana | 0.76% | $2,270 |
| 29 | Virginia | 0.75% | $2,260 |
| 30 | Washington | 0.74% | $2,210 |
| 31 | Kentucky | 0.72% | $2,170 |
| 32 | California | 0.69% | $2,080 |
| 33 | North Carolina | 0.62% | $1,870 |
| 34 | New Mexico | 0.61% | $1,830 |
| 35 | Montana | 0.59% | $1,780 |
| 36 | Wyoming | 0.58% | $1,750 |
| 37 | Louisiana | 0.56% | $1,670 |
| 38 | Mississippi | 0.54% | $1,620 |
| 39 | Arkansas | 0.54% | $1,620 |
| 40 | Colorado | 0.52% | $1,560 |
| 41 | Delaware | 0.51% | $1,540 |
| 42 | Nevada | 0.50% | $1,510 |
| 43 | West Virginia | 0.48% | $1,450 |
| 44 | Tennessee | 0.46% | $1,380 |
| 45 | Utah | 0.45% | $1,360 |
| 46 | South Carolina | 0.44% | $1,310 |
| 47 | Idaho | 0.43% | $1,300 |
| 48 | Arizona | 0.43% | $1,280 |
| 49 | Alabama | 0.37% | $1,110 |
| 50 | Hawaii | 0.31% | $930 |
*State effective rate × $300,000, rounded. For a $500,000 home, multiply the rate by 5,000 instead. District of Columbia is not included.
What the spread tells us: the 50-state median is about 0.77% and the unweighted state average is about 0.85%. The nationwide aggregate is slightly different at 0.888%. NAHB puts the national average at $8.88 of tax per $1,000 of home value. Those three numbers measure different things, so never mix them in one comparison.
Rate vs. Bill: Why Hawaii Is Cheap on Paper but Not Always in Practice
Rankings by rate hide an important truth. A low percentage applied to an expensive home can still produce a meaningful bill.
Hawaii has both the lowest rate and the highest average home value, at about $1.05 million. Run the math: 0.31% of $1.05 million is roughly $3,240 a year, which is higher than the typical bill in many lower-priced states with higher rates.
Now flip the lens and look at actual average bills.
| Highest average annual bill | Average paid | Lowest average annual bill | Average paid |
|---|---|---|---|
| New Jersey | $9,767 | West Virginia | $1,044 |
| New York | $7,573 | Alabama | $1,052 |
| Connecticut | $7,498 | Mississippi | $1,238 |
| Arkansas | $1,395 |
Source: NAHB analysis of 2024 ACS data, as reported by Better.com.
Notice the pattern. Illinois leads on rate but not on bill, while New York has only the tenth-highest rate yet the second-highest average bill. West Virginia has the lowest bill but not the lowest rate.
Three takeaways follow:
- Use the rate to compare how heavily a state taxes housing value.
- Use the bill to plan your monthly budget.
- Use the county tax record for any specific house you plan to buy.
The average annual bill across the nation's 87 million owner-occupied homes was $4,271 in 2024, up about 4% from the year before.
Why Property Taxes Differ So Much From State to State
Funding mix
Property tax is the single largest revenue source for state and local governments. The Tax Foundation reports it made up 27.4% of total state and local tax collections in fiscal year 2022. States that skip an income tax or sales tax tend to make it up here. Our comparison of federal vs. state income tax shows how that trade-off works at the household level.
Assessment rules
Some states assess at or near market value. Others use fractions of value, caps on annual increases, or long gaps between reassessments. California's Proposition 13 is the famous example, and it helps explain why the state's rate sits at 0.69% despite sky-high home prices. For a broader view of California's tax picture, see our California income tax rate guide for 2026.
The long-term owner advantage
When assessments lag market values, long-time owners pay less than recent buyers of similar homes. Nationally, the effective rate has drifted down over the past decade even as bills rose, because home values grew faster than assessments. A new buyer should never assume the seller's current bill will carry over. Many jurisdictions reassess on sale.
Local government structure
Counties, cities, school districts and special districts all layer their own levies. That is why a "statewide" rate is only a starting point.
County Differences: The Number Inside Your State Matters More
State averages smooth over huge local variation. County data from the Tax Foundation shows how wide the gap can be.
- Alabama: median property taxes range from under $200 in Choctaw County to $1,343 in Shelby County.
- Texas: According to a Money Digest roundup of Tax Foundation county data, El Paso County has an effective rate near 2.09% while Crockett County is closer to 0.33%.
- New Hampshire: the same roundup puts Sullivan County at 2.38% and Carroll County at 1.06%.
- Nationally: the average county median bill was $1,889 in 2023, and 11 counties had medians below $250.
The practical lesson: if you are choosing between two states, compare the actual counties you would live in, not the state headline. Our US state income tax calculator can help you add the income-tax side of that comparison.
How to Estimate Your Property Tax (Step by Step)
You can build a reasonable first estimate in five minutes.
- Find the home's likely purchase price. Use the listing price or your expected offer.
- Find the county's effective rate. Check the county assessor or treasurer site, or use the state rate from the table above as a rough guide.
- Multiply price by the rate. Example: $400,000 × 1.24% = $4,960.
- Subtract known exemptions. A homestead exemption, for instance, reduces the taxable value in many states. Verify the amount locally.
- Add local levies if they are separate. Special districts and school bonds sometimes appear as their own lines.
Worked comparison: the same $400,000 home in three states
| State | Rate used | Modeled annual tax |
|---|---|---|
| Illinois | 1.79% | about $7,170 |
| Texas | 1.24% | about $4,980 |
| Arizona | 0.43% | about $1,700 |
The Illinois-to-Arizona gap is roughly $5,470 a year, or about $54,700 over ten years if rates and values stayed flat. They will not, but the direction is clear.
Rate is one half of the picture
Here is a hypothetical to show why you should not pick a state on property tax alone. Imagine a buyer earning $90,000 who is choosing between two $400,000 homes. In Texas, property tax is about $4,980 and there is no state income tax. In a state with a flat 4% income tax and a 0.7% property tax rate, property tax is about $2,800, but income tax adds roughly $3,600. The totals are close. Your own numbers will differ, so run them with our income tax calculator and salary tax calculator.
Exemptions, Relief Programs and Appeals
Many states soften the blow for eligible owners. Common programs include:
- Homestead exemptions for primary residences. Texas, Florida and Illinois are well-known examples.
- Senior and disabled relief, often with age or income limits.
- Veteran exemptions, which vary by disability rating and state.
- Circuit breaker programs, which cap tax as a share of income for qualifying households.
Eligibility, dollar amounts and deadlines change, so confirm each one on your state revenue department or county assessor website. Many require a one-time application, and missing it can mean paying the full amount.
How to appeal an assessment
If your assessed value looks too high:
- Read the notice carefully and note the appeal deadline. It is often short.
- Gather evidence: recent comparable sales, an independent appraisal, photos of defects.
- File with the local assessment board or county assessor.
- Attend the hearing if one is required.
The International Association of Assessing Officers publishes professional standards on assessment practice, which helps you understand how values should be set. For context on local property tax systems, the Lincoln Institute of Land Policy is a strong research source.
Can You Deduct Property Taxes on Your Federal Return?
Sometimes. Property taxes are part of the state and local tax (SALT) deduction, which only helps if you itemize. The 2025 tax law raised the SALT cap well above the old $10,000 limit, with a phase-down for higher earners and a scheduled rollback later in the decade. Check the current cap on the IRS Topic 503 page on deductible taxes and weigh it against the standard deduction using our guide to standard vs. itemized deductions in 2026.
Do not assume the deduction applies to you. It depends on your total itemized deductions, income and filing status.
Real-World Scenarios: How Different Buyers Should Read This Data
The retiree on a fixed income. A low rate helps, but exemptions matter more. A 66-year-old moving to Arizona or Tennessee starts from a low base, then checks whether the county offers senior freezes or credits. A freeze can matter more than a 0.1% difference in rate.
The remote worker choosing a state. Property tax is one input. Add state income tax, sales tax and insurance. Our sales tax guide for the USA and states with the highest and lowest sales tax round out the picture.
The investor buying rentals. Residential owner-occupied rates may not apply to investment property. Many states tax rentals at higher rates or without homestead relief. Pull the county tax record for each target property and budget conservatively.
The first-time buyer. Your lender will likely escrow property tax into your monthly payment. If the seller's bill is low because of a long ownership history, expect it to rise after reassessment. Ask the county how the sale will affect assessed value before you finalize your budget.
Pre-Purchase Checklist
- Look up the county's current effective rate and the property's tax history.
- Ask whether the sale triggers a reassessment.
- Confirm which exemptions you qualify for and how to apply.
- Check whether special assessments or bonds are attached to the parcel.
- Estimate a monthly escrow figure and add it to your mortgage budget.
- Compare the total tax picture, including state income tax, using our US state income tax calculator.
- Before signing, walk through your numbers using our guide to calculating your tax before meeting an accountant.
If you are moving from abroad or between states, also review US tax residency rules for 2026 and our overview of US individual taxes in 2026.
Why Choose Free Calculator for Tax Planning
Rankings tell you where to look. Calculators tell you what it means for your wallet. That is the gap we built our tools to fill.
If you are wondering why choose Free Calculator, the short answer is that every tool is free, explained in plain English and updated when rules change. Start with the income tax calculator, then explore advanced tools such as the US sales tax calculator by ZIP code and the state income tax calculator. Browse the full set on our tools page.
Our tools give educational estimates, not filings or professional advice. Read our disclaimer for details, or contact our team with questions.
Free and Authoritative Resources
- U.S. Census Bureau American Community Survey for the raw housing and tax tables
- Census Table B25090 (real estate taxes paid) and Table B25082 (home values)
- NAHB: Property Taxes by State, 2024
- Tax Foundation: Property Taxes by State and County
- Lincoln Institute of Land Policy for property tax research
- IAAO for assessment standards
- IRS Topic 503: Deductible Taxes
- U.S. Department of Housing and Urban Development for housing affordability context
- Your county assessor or treasurer website for the real bill on any specific parcel
Frequently Asked Questions
What state has the highest property tax rate in 2026?
Illinois, at about 1.79% of home value, based on 2024 Census ACS data. New Jersey ranks second at 1.68%. Some datasets, including the Tax Foundation's 2023-data report, put New Jersey first, so always check the method and year.
What state has the lowest property tax rate?
Hawaii, at about 0.31%, followed by Alabama at 0.37%. Both datasets discussed above agree on these two.
Which state has the highest annual property tax bill?
New Jersey, with an average bill of about $9,767 in 2024, according to NAHB data. That is higher than Illinois's bill even though Illinois has the higher rate.
Does a low rate always mean a cheaper home to own?
No. Hawaii has the lowest rate but the most expensive homes. Multiply the rate by the home's value to see the real dollar cost.
How much property tax would I pay on a $300,000 home?
It ranges from roughly $930 in Hawaii to about $5,380 in Illinois at average state rates. Your county, exemptions and assessment rules will shift the number.
Is property tax based on assessed value or market value?
It depends on the state. Many apply the rate to an assessed value that may equal market value or only a share of it. Check your county assessor's rules.
Can I appeal my property tax assessment?
Yes, in every state. Deadlines are strict, so read your notice carefully and file on time with comparable sales or an appraisal as evidence.
Where can I find my county's official property tax rate?
Start with your county assessor or tax collector website. Your state revenue department's site often links to local rates and exemption forms.
Conclusion:
The 2026 picture is consistent. Illinois, New Jersey and the Northeast carry the heaviest effective rates, while Hawaii, Alabama and the Mountain West and Southeast carry the lightest. But the single most useful lesson is that the state rate is only the starting point.
Here is your plan:
- Pick two or three states from the table that fit your budget.
- Choose actual counties and pull each one's recent tax records.
- Model the bill at your target price, then subtract exemptions you qualify for.
- Add income tax and sales tax to see the full state picture.
- Confirm reassessment rules before you rely on a seller's current bill.
Ready for the next step? Book a seat at Advance Free Tools offered by Free Calculator, and explore advanced Free Calculator tools to compare your real numbers instead of guessing.