Introduction
Property taxes in the United States are a major source of revenue for local governments, providing funding for essential services such as schools, infrastructure, public safety, and healthcare. However, the rates and regulations surrounding property taxes can vary significantly from state to state, resulting in substantial differences in the financial burden faced by homeowners.
Property tax rates are typically expressed as a percentage of the assessed value of a property. The assessed value is often based on the property’s market value or a fraction of it. The tax rate, multiplied by the assessed value, determines the amount of property tax owed.
The variation in property tax rates across states is influenced by several factors, including state and local government budgets, the reliance on property taxes as a revenue source, and the overall tax structure of a state. Additionally, the presence of other taxes, such as income or sales taxes, can influence the level of property taxes in a given state.
There are significant disparities in property tax rates from state to state. At one end of the spectrum, states like Hawaii, Alabama, and Louisiana have relatively low property tax rates, offering homeowners a more favorable financial landscape. On the other hand, states such as New Jersey, Illinois, and New Hampshire have high property tax rates, resulting in a more substantial financial burden for property owners.
These variations can have a considerable impact on homeownership affordability and investment decisions. Lower property tax states may attract individuals seeking more affordable housing options, while higher property tax states may pose challenges for homeownership and property investment.
It is essential to note that property tax rates are just one aspect of the overall tax picture. States with lower property tax rates may compensate with higher income or sales taxes, and vice versa. Therefore, it is crucial to consider the broader tax landscape and the quality of public services provided when evaluating the impact of property taxes on homeowners.
Property Tax by State
| # | State | Property Tax Rate | Income Tax Rate | Corporate Tax Rate | State-Local Tax Burden |
|---|---|---|---|---|---|
| 1 | New Jersey | 2.13% | 1.4% | 11.5% | 13.2% |
| 2 | Illinois | 1.97% | 4.95% | 9.5% | 12.9% |
| 3 | New Hampshire | 1.89% | 5% | 7.5% | 9.6% |
| 4 | Vermont | 1.76% | 3.35% | 8.5% | 13.6% |
| 5 | Connecticut | 1.73% | 3% | 7.5% | 15.4% |
| 6 | Texas | 1.6% | 0% | 0% | 8.6% |
| 7 | Nebraska | 1.54% | 2.46% | 7.3% | 11.5% |
| 8 | Michigan | 1.53% | 4.25% | 6% | 8.6% |
| 9 | Wisconsin | 1.53% | 3.54% | 7.9% | 10.9% |
| 10 | Ohio | 1.52% | 2.77% | 0% | 10% |
| 11 | Iowa | 1.43% | 0.33% | 8.4% | 11.2% |
| 12 | Pennsylvania | 1.43% | 3.07% | 9% | 10.6% |
| 13 | Rhode Island | 1.37% | 3.75% | 7% | 11.4% |
| 14 | New York | 1.3% | 4% | 7.3% | 15.9% |
| 15 | Kansas | 1.28% | 3.1% | 7% | 11.2% |
| 16 | Maine | 1.2% | 5.8% | 8.9% | 12.4% |
| 17 | South Dakota | 1.14% | 0% | 0% | 8.4% |
| 18 | Massachusetts | 1.08% | 5% | 8% | 11.5% |
| 19 | Minnesota | 1.05% | 5.35% | 9.8% | 12.1% |
| 20 | Maryland | 1.01% | 2% | 8.3% | 11.3% |
| 21 | Alaska | 0.98% | 0% | 9.4% | 4.6% |
| 22 | Missouri | 0.96% | 1.5% | 4% | 9.3% |
| 23 | Oregon | 0.91% | 4.75% | 7.6% | 10.8% |
| 24 | North Dakota | 0.88% | 1.1% | 4.3% | 8.8% |
| 25 | Georgia | 0.87% | 1% | 5.8% | 8.9% |
| 26 | Florida | 0.86% | 0% | 5.5% | 9.1% |
| 27 | Virginia | 0.84% | 2% | 6% | 12.5% |
| 28 | Washington | 0.84% | 7% | 0% | 10.7% |
| 29 | Oklahoma | 0.83% | 0.25% | 4% | 9% |
| 30 | Indiana | 0.81% | 3.23% | 4.9% | 9.3% |
| 31 | Kentucky | 0.78% | 5% | 5% | 9.6% |
| 32 | North Carolina | 0.78% | 4.99% | 2.5% | 9.9% |
| 33 | Montana | 0.74% | 1% | 6.8% | 10.5% |
| 34 | California | 0.7% | 1% | 8.8% | 13.5% |
| 35 | Idaho | 0.65% | 1% | 5.8% | 10.7% |
| 36 | Mississippi | 0.63% | 4% | 5% | 9.8% |
| 37 | Tennessee | 0.63% | 0% | 6.5% | 7.6% |
| 38 | Arkansas | 0.61% | 2% | 5.3% | 10.2% |
| 39 | Arizona | 0.6% | 2.59% | 4.9% | 9.5% |
| 40 | Delaware | 0.59% | 2.2% | 8.7% | 12.4% |
| 41 | New Mexico | 0.59% | 1.7% | 5.9% | 10.2% |
| 42 | Nevada | 0.56% | 0% | 0% | 9.6% |
| 43 | Utah | 0.56% | 4.95% | 4.9% | 12.1% |
| 44 | South Carolina | 0.53% | 0% | 5% | 8.9% |
| 45 | West Virginia | 0.53% | 3% | 6.5% | 9.8% |
| 46 | Colorado | 0.52% | 4.55% | 4.6% | 9.7% |
| 47 | Louisiana | 0.51% | 1.85% | 7.5% | 9.1% |
| 48 | Wyoming | 0.51% | 0% | 0% | 7.5% |
| 49 | Alabama | 0.37% | 2% | 6.5% | 9.8% |
| 50 | Hawaii | 0.31% | 1.4% | 6.4% | 14.1% |
States With Highest Property Tax
The ten states with the highest property taxes in the United States are as follows: New Jersey, Illinois, New Hampshire, Vermont, Connecticut, Texas, Nebraska, Michigan, Wisconsin, and Ohio. New Jersey ranks first with a property tax rate of 2.13%, followed closely by Illinois at 1.97%. New Hampshire comes in third with a property tax rate of 1.89%, while Vermont follows closely at 1.76%. Connecticut has a property tax rate of 1.73%, Texas at 1.60%, Nebraska and Michigan share a property tax rate of 1.54%, and both Wisconsin and Ohio round out the top ten with property tax rates of 1.53% and 1.52%, respectively.
The ten highest property tax rates in the US are :
1. New Jersey – 2.13%
2. Illinois – 1.97%
3. New Hampshire – 1.89%
4. Vermont – 1.76%
5. Connecticut – 1.73%
6. Texas – 1.60%
7. Nebraska – 1.54%
8. Michigan – 1.53%
9. Wisconsin – 1.53%
10. Ohio – 1.52%
States With Lowest Property Tax
The ten states with the lowest property taxes in the United States are Hawaii, Alabama, Louisiana, Wyoming, Colorado, South Carolina, West Virginia, Nevada, and Utah. Hawaii tops the list with a property tax rate of 0.31%, followed by Alabama at 0.37%, Louisiana and Wyoming tied at 0.51%, Colorado at 0.52%, South Carolina and West Virginia tied at 0.53%, Nevada and Utah tied at 0.56%, and Delaware at 0.59%.
The ten states with the lowest property tax rates in the US are :
1. Hawaii – 0.31%
2. Alabama – 0.37%
3. Louisiana – 0.51%
4. Wyoming – 0.51%
5. Colorado – 0.52%
6. South Carolina – 0.53%
7. West Virginia – 0.53%
8. Nevada – 0.56%
9. Utah – 0.56%
10. Delaware – 0.59%
Property Taxes by State
Alabama
0.37%
Ranked in the US
#49
Ranked in the US
#28
Ranked in the US
#24
Ranked in the US
#30
Alabama secures the second spot with a property tax rate of 0.37%. This relatively low rate contributes to a more affordable housing market in the state, making it an attractive destination for homeowners. The lower property tax burden in Alabama allows residents to allocate their resources toward other priorities and investments.
Alaska
0.98%
Ranked in the US
#21
Ranked in the US
#44
Ranked in the US
#4
Ranked in the US
#51
Arizona
Ranked in the US
#39
2.59%
Ranked in the US
#25
Ranked in the US
#38
Ranked in the US
#37
Arkansas
0.61%
Ranked in the US
#38
Ranked in the US
#29
Ranked in the US
#34
Ranked in the US
#26
California
Ranked in the US
#34
Ranked in the US
#38
Ranked in the US
#7
Ranked in the US
#5
Colorado
0.52%
Ranked in the US
#46
4.55%
Ranked in the US
#11
Ranked in the US
#41
Ranked in the US
#33
Colorado ranks fifth among states with low property tax rates, with a rate of 0.52%. This moderate tax burden contributes to the affordability of homeownership in the state. Colorado's favorable property tax environment can be an attractive feature for individuals seeking to settle in the Rocky Mountain region.
Connecticut
1.73%
Ranked in the US
#5
Ranked in the US
#22
Ranked in the US
#16
Ranked in the US
#2
Connecticut ranks fifth among states with high property tax rates, with a rate of 1.73%. The state's property taxes are crucial for funding local governments, education, and social services. Connecticut's high property tax burden has been a topic of discussion, with ongoing efforts to address the impact of property taxes on homeowners and the overall affordability of living in the state.
Delaware
0.59%
Ranked in the US
#40
2.2%
Ranked in the US
#27
Ranked in the US
#8
Ranked in the US
#9
Delaware rounds up the list of the ten states with the lowest property tax rates, standing at 0.59%. Although slightly higher than the previous states on the list, Delaware's property tax rate remains comparatively low. This favorable tax environment can make homeownership in Delaware more accessible and attractive to residents and prospective buyers.
Florida
0.86%
Ranked in the US
#26
Ranked in the US
#45
Ranked in the US
#33
Ranked in the US
#40
Georgia
0.87%
Ranked in the US
#25
Ranked in the US
#39
Ranked in the US
#31
Ranked in the US
#43
Hawaii
0.31%
Ranked in the US
#50
1.4%
Ranked in the US
#35
Ranked in the US
#27
Ranked in the US
#3
Hawaii boasts the lowest property tax rate in the United States. With a rate of 0.31%, homeowners in Hawaii enjoy a comparatively lower tax burden. This favorable tax environment can make property ownership more affordable and appealing for residents and potential buyers in the Aloha State.
Idaho
0.65%
Ranked in the US
#35
Ranked in the US
#40
Ranked in the US
#32
Ranked in the US
#22
Illinois
1.97%
Ranked in the US
#2
4.95%
Ranked in the US
#8
Ranked in the US
#3
Ranked in the US
#7
Illinois follows closely behind with a property tax rate of 1.97%. The state's property taxes are influenced by various factors, including local government budgets, pension obligations, and funding for public services. Property owners in Illinois face a considerable tax burden, which has prompted ongoing discussions and debates about the need for property tax reforms in the state.
Indiana
0.81%
Ranked in the US
#30
3.23%
Ranked in the US
#19
Ranked in the US
#39
Ranked in the US
#38
Iowa
1.43%
Ranked in the US
#11
0.33%
Ranked in the US
#42
Ranked in the US
#10
Ranked in the US
#18
Kansas
1.28%
Ranked in the US
#15
3.1%
Ranked in the US
#20
Ranked in the US
#21
Ranked in the US
#19
Kentucky
0.78%
Ranked in the US
#31
Ranked in the US
#4
Ranked in the US
#35
Ranked in the US
#34
Louisiana
0.51%
Ranked in the US
#47
1.85%
Ranked in the US
#32
Ranked in the US
#17
Ranked in the US
#41
Louisiana ranks third among states with the lowest property tax rates, standing at 0.51%. The state's moderate tax rate contributes to a favorable real estate environment, making homeownership more accessible and affordable for residents. This lower property tax rate can be advantageous for individuals seeking to settle in Louisiana or invest in its real estate market.
Maine
Ranked in the US
#16
5.8%
Ranked in the US
#2
Ranked in the US
#6
Ranked in the US
#10
Maryland
1.01%
Ranked in the US
#20
Ranked in the US
#30
Ranked in the US
#12
Ranked in the US
#17
Massachusetts
1.08%
Ranked in the US
#18
Ranked in the US
#5
Ranked in the US
#13
Ranked in the US
#14
Michigan
1.53%
Ranked in the US
#8
4.25%
Ranked in the US
#12
Ranked in the US
#28
Ranked in the US
#46
Michigan is known for its property tax rate of 1.53%. The state's property taxes contribute to funding local governments, schools, and community services. Michigan employs a complex property tax system that includes various exemptions and assessments based on property type and usage.
Minnesota
1.05%
Ranked in the US
#19
5.35%
Ranked in the US
#3
Ranked in the US
#2
Ranked in the US
#11
Mississippi
0.63%
Ranked in the US
#36
Ranked in the US
#14
Ranked in the US
#36
Ranked in the US
#31
Missouri
0.96%
Ranked in the US
#22
1.5%
Ranked in the US
#34
Ranked in the US
#43
Ranked in the US
#39
Montana
0.74%
Ranked in the US
#33
Ranked in the US
#41
Ranked in the US
#23
Ranked in the US
#25
Nebraska
1.54%
Ranked in the US
#7
2.46%
Ranked in the US
#26
Ranked in the US
#19
Ranked in the US
#15
In Nebraska, property owners face a property tax rate of 1.54%. Property taxes in the state are utilized to fund local governments, schools, and infrastructure projects. Nebraska's property tax structure includes different classifications and valuation methods, which can impact the tax burden on residential, agricultural, and commercial properties.
Nevada
0.56%
Ranked in the US
#42
Ranked in the US
#46
Ranked in the US
#46
Ranked in the US
#35
Nevada secures the eighth position for states with the lowest property taxes, with a property tax rate of 0.56%. This moderate tax rate contributes to a relatively favorable real estate environment for homeowners in the state. With a lower property tax burden, Nevada offers residents the opportunity to maximize their financial resources and pursue other priorities.
New Hampshire
1.89%
Ranked in the US
#3
Ranked in the US
#6
Ranked in the US
#18
Ranked in the US
#36
With a property tax rate of 1.89%, New Hampshire ranks third in terms of high property tax rates. The state's property taxes play a significant role in funding local government services, education, and infrastructure projects. New Hampshire is known for not having a state income tax, which contributes to its reliance on property taxes as a primary source of revenue.
New Jersey
2.13%
Ranked in the US
#1
1.4%
Ranked in the US
#36
11.5%
Ranked in the US
#1
Ranked in the US
#6
New Jersey holds the highest property tax rate in the nation, at 2.13%. The state's property tax burden is known to be substantial, primarily driven by the need to fund local governments, education, and various public services. Despite efforts to address property tax reform, New Jersey's high property taxes continue to be a significant concern for homeowners and businesses.
New Mexico
0.59%
Ranked in the US
#41
1.7%
Ranked in the US
#33
Ranked in the US
#30
Ranked in the US
#27
New York
Ranked in the US
#14
Ranked in the US
#15
Ranked in the US
#20
Ranked in the US
#1
North Carolina
0.78%
Ranked in the US
#32
4.99%
Ranked in the US
#7
Ranked in the US
#45
Ranked in the US
#29
North Dakota
0.88%
Ranked in the US
#24
1.1%
Ranked in the US
#37
Ranked in the US
#42
Ranked in the US
#45
Ohio
1.52%
Ranked in the US
#10
2.77%
Ranked in the US
#24
Ranked in the US
#47
Ranked in the US
#28
Ohio rounds out the list of states with the highest property tax rates, with a rate of 1.52%. Property taxes in Ohio are essential for funding local governments, schools, and public services. The state's property tax system includes both real property taxes (land and buildings) and tangible personal property taxes (such as business equipment).
Oklahoma
0.83%
Ranked in the US
#29
0.25%
Ranked in the US
#43
Ranked in the US
#44
Ranked in the US
#42
Oregon
0.91%
Ranked in the US
#23
4.75%
Ranked in the US
#10
Ranked in the US
#15
Ranked in the US
#21
Pennsylvania
1.43%
Ranked in the US
#12
3.07%
Ranked in the US
#21
Ranked in the US
#5
Ranked in the US
#24
Rhode Island
1.37%
Ranked in the US
#13
3.75%
Ranked in the US
#16
Ranked in the US
#22
Ranked in the US
#16
South Carolina
0.53%
Ranked in the US
#44
Ranked in the US
#47
Ranked in the US
#37
Ranked in the US
#44
With a property tax rate of 0.53%, South Carolina offers homeowners a relatively low tax burden. This lower rate contributes to the state's affordable housing market, making it an enticing destination for those seeking homeownership options. South Carolina's property tax structure can provide financial advantages to residents and potential buyers.
South Dakota
1.14%
Ranked in the US
#17
Ranked in the US
#48
Ranked in the US
#48
Ranked in the US
#48
Tennessee
0.63%
Ranked in the US
#37
Ranked in the US
#49
Ranked in the US
#25
Ranked in the US
#49
Texas
Ranked in the US
#6
Ranked in the US
#50
Ranked in the US
#49
Ranked in the US
#47
Texas, despite its reputation for no state income tax, has a property tax rate of 1.60%. The state's property taxes serve as a primary revenue source for local governments, schools, and other public services. Property tax rates in Texas can vary based on local jurisdictions, and homeowners often take advantage of various exemptions and relief programs to mitigate their property tax burden.
Utah
0.56%
Ranked in the US
#43
4.95%
Ranked in the US
#9
Ranked in the US
#40
Ranked in the US
#12
Similar to Nevada, Utah also maintains a property tax rate of 0.56%. This moderate tax burden contributes to a more affordable housing market in the state. Utah's relatively low property tax rate allows homeowners to manage their finances more effectively and potentially invest in other areas.
Vermont
1.76%
Ranked in the US
#4
3.35%
Ranked in the US
#18
Ranked in the US
#9
Ranked in the US
#4
Vermont is another state with a relatively high property tax rate of 1.76%. The state's property taxes support a range of public services, including education, healthcare, and infrastructure. Vermont's property tax structure includes a mix of state and local levies, which can vary across different municipalities and school districts within the state.
Virginia
0.84%
Ranked in the US
#27
Ranked in the US
#31
Ranked in the US
#29
Ranked in the US
#8
Washington
0.84%
Ranked in the US
#28
Ranked in the US
#1
Ranked in the US
#50
Ranked in the US
#23
West Virginia
0.53%
Ranked in the US
#45
Ranked in the US
#23
Ranked in the US
#26
Ranked in the US
#32
Sharing the same property tax rate as South Carolina, West Virginia also stands at 0.53%. This relatively low tax burden contributes to the state's affordability for homeowners. West Virginia's lower property tax rate allows residents to allocate their resources more efficiently, enhancing the overall attractiveness of the state's real estate market.
Wisconsin
1.53%
Ranked in the US
#9
3.54%
Ranked in the US
#17
Ranked in the US
#14
Ranked in the US
#20
With a property tax rate of 1.53%, Wisconsin shares a similar rate with Michigan. Property taxes in Wisconsin support local government operations, education, and other public services. The state's property tax structure incorporates a mix of levies at the county, municipality, and school district levels.
Wyoming
0.51%
Ranked in the US
#48
Ranked in the US
#51
Ranked in the US
#51
Ranked in the US
#50
Sharing the same property tax rate as Louisiana, Wyoming also maintains a rate of 0.51%. This relatively low rate contributes to the state's overall appeal as a destination for homeowners. Wyoming's low property tax burden can enhance housing affordability, allowing residents to allocate their financial resources to other aspects of their lives.
FAQs
What state has the highest property tax ?
New Jersey has the highest property tax rate among all states in the United States, with a property tax rate of 2.13%.
What state has the lowest property tax ?
The state with the lowest property tax rate among all states is Hawaii, with a property rate of 0.31%.
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