State-by-State Property Tax Burden: A 50-State Reality Check
The 10 highest and 10 lowest property tax states, with effective rates, median bills, and the hidden factors (assessment caps, exemptions, school funding) that change the picture.
Property tax varies more between US states than almost any other tax. The highest-rate states (New Jersey, Illinois) charge an effective rate four to seven times higher than the lowest (Hawaii, Alabama). But raw rate is misleading — what matters to homeowners is the dollar amount, which depends equally on rate and median home value. This guide ranks all 50 states by both, explains the structural reasons for the differences, and highlights states where the headline rate hides a much different real burden.
The 10 highest-burden states
Ranked by effective rate on median home value (current estimates from state revenue departments and ACS data):
- New Jersey — ~2.4% effective. Median annual property tax bill exceeds $9,000. Top in the country for both rate and absolute dollars on a typical home. Homestead and senior exemptions help, but aggressive school district funding keeps rates high.
- Illinois — ~2.1%. Cook County (Chicago) is the highest urban county, regularly producing $8,000+ bills on $400,000 homes. Pension funding obligations are the main structural driver.
- New Hampshire — ~2.0%. No state income tax, no sales tax — property tax funds nearly everything. Bills are high but the trade-off is no withholding from your paycheck.
- Connecticut — ~2.0%. Funded primarily at the town level, with significant variation between Fairfield County and rural counties.
- Vermont — ~1.9%. Statewide education property tax pools school funding across the state.
- Wisconsin — ~1.7%. School district funding via local levy; equalization formulas spread the burden.
- Texas — ~1.7%. No state income tax (like NH). Property tax fully funds schools, county government, and special districts. Annual reassessment at 100 percent ratio means rising market values translate quickly into higher bills.
- Nebraska — ~1.6%. Heavy school district reliance.
- Ohio — ~1.5%. Wide local variation, but no widespread cap on annual increases.
- Iowa — ~1.5%. Rolling 5-year reassessment caps cushion sudden increases but the base rate is high.
The 10 lowest-burden states
- Hawaii — ~0.27%. Lowest rate in the country, but median home value over $700,000 means absolute bills are still moderate ($1,900+).
- Alabama — ~0.40%. 10 percent assessment ratio combined with low millage produces the cheapest absolute bills among populated states.
- Colorado — ~0.50%. Recent rate reductions following voter initiatives; assessment ratio is one of the lowest.
- Louisiana — ~0.55%. Generous homestead exemption ($75,000) for primary residences.
- South Carolina — ~0.55%. 4 percent assessment ratio for owner-occupied homes — the lowest in the country.
- Wyoming — ~0.60%. Small population spreads modest budgets thin.
- West Virginia — ~0.60%. Low home values keep absolute bills among the lowest in the country.
- Nevada — ~0.55%. No state income tax, but property tax is also kept low; gaming revenue covers much of the state budget.
- Utah — ~0.60%. Owner-occupied homes get a 45 percent reduction in taxable value via the residential exemption.
- Delaware — ~0.55%. Reassessments are infrequent (some counties have not done a full reassessment in decades), keeping effective rates artificially low.
Rate is half the story — dollar amount matters too
A low rate on a high-value home produces a higher absolute bill than a high rate on a cheap home. Top 5 states by median annual property tax bill:
- New Jersey — about $9,200
- New Hampshire — about $6,800
- Connecticut — about $6,500
- New York — about $6,300 (especially Long Island, Westchester)
- Massachusetts — about $5,800
Compare to bottom 5 by absolute bill:
- West Virginia — about $850
- Alabama — about $700
- Arkansas — about $900
- Louisiana — about $950
- Mississippi — about $1,000
The Hawaii paradox: lowest effective rate, but a $1,900 median bill — higher than a dozen states with rates 3x higher, because Hawaii home values are so high.
Three structural drivers
Why do rates differ so dramatically? Three main reasons:
- School funding model. States that fund K–12 schools primarily through local property tax (NJ, IL, TX, NH) have high rates. States that use state income tax or sales tax to fund education (CA partially, HI fully) keep property tax low.
- Assessment caps and freezes. California (Prop 13), Florida (Save Our Homes), and Oregon all cap annual assessment increases, which lowers effective rates over time as market values outpace assessed values.
- Other tax revenue. States without income tax (TX, FL, NV, NH, TN, WY, SD, AK, WA) rely more on property and sales tax. Texas leans hard on property; Nevada leans on tourism and sales.
How to use this for a relocation decision
If you are deciding between two states, do not stop at property tax. Calculate total tax burden by adding:
- State income tax on your expected income
- State and local sales tax × your typical spending
- Property tax on your target home value
- Vehicle registration and fees
Texas-vs-California is a famous example: Texas has high property tax but no income tax. For a $400,000 home and $150,000 income, total tax burden in California is roughly $14,000 (low property + high income). In Texas it is roughly $9,500 (high property, no income). For higher incomes the gap widens further.
Use our state pages to look up current rates for any state, and our compare tool to put two states side by side.
Frequently Asked Questions
Which state has the highest property tax rate?+
New Jersey, with an effective rate of about 2.4 percent on market value, followed by Illinois at about 2.1 percent. Both produce median bills above $7,000 per year on typical homes.
Which state has the lowest property tax rate?+
Hawaii, at about 0.27 percent effective. However, Hawaii has the highest median home value in the country, so the absolute dollar bill is still around $1,900 — higher than several states with much higher rates.
Are no-income-tax states cheaper overall?+
Sometimes, but not always. Texas and New Hampshire have no income tax but among the highest property tax rates in the country. Florida and Tennessee have low or no income tax and moderate property tax. Always calculate total tax burden, not single tax categories.
Do property taxes go down when home values fall?+
Often more slowly than you would expect. Local governments adjust millage rates to maintain revenue when assessed values fall, which can offset some or all of the rate decrease. In states with assessment caps (CA, FL), there is little flexibility because assessed values were already below market.
How often do states reassess property values?+
Varies enormously. Texas and California use annual or transactional reassessments. Pennsylvania has counties that have not done a full reassessment in decades. Delaware has counties on a 50+ year cycle. Less frequent reassessment usually benefits long-time owners and disadvantages recent buyers.
Why is Cook County (Chicago) so expensive?+
Chicago Public Schools and the Cook County pension system both rely heavily on property tax. Decades of pension underfunding have shifted obligations onto current property owners. Effective rates in Cook County exceed 2.5 percent in many neighborhoods.
Run the numbers for your situation
These guides are theory. Get the actual property tax for your address and home value.
Our property tax specialists track assessment rates, exemption programs, and appeal processes across all US counties. Data sourced from county assessor records and state revenue department filings.