Property Tax Rates by State 2026

Property taxes are the single largest source of revenue for most local governments in the United States, funding schools, roads, police, fire protection, parks, and libraries. But the rate you pay depends heavily on where you live. Two homeowners with identical $400,000 houses can owe less than $1,200 or more than $7,500 a year depending solely on which state and county they call home. This gap is not random; it reflects deep structural choices each state has made about how to raise money for public services.

This guide compiles the most recent authoritative data — the Tax Foundation's 2024 effective property tax rates on owner-occupied housing (derived from the U.S. Census Bureau American Community Survey) — into one comparable table, explains what the numbers mean, and shows you how to use them when comparing states or estimating a move. Whether you are relocating for work, retiring to a lower-tax state, or simply trying to understand your own bill, this is the place to start.

What Is an "Effective" Property Tax Rate?

An effective property tax rate is the average amount of residential property tax actually paid, expressed as a percentage of home value. It is calculated as total real estate taxes paid divided by total owner-occupied home value. This differs from a statutory millage rate or nominal rate, which only tells part of the story. Effective rates already account for how each state assesses property (market value versus a percentage of market value), the exemptions it grants, any caps on annual increases, and the local school, city, and county levies layered on top of the base rate. That is why effective rates are the fairest way to compare tax burdens across state lines, and why the Tax Foundation uses them rather than raw millage.

To see why the distinction matters, consider a state that sets a high nominal millage rate but assesses homes at only 10% of market value. A homeowner there might face a scary-sounding rate on paper yet pay less than a neighbor in a state with a low millage but 100% assessment. The effective rate cuts through that confusion and shows what people actually pay.

Property Tax Rates by State — 2024 (Tax Foundation)

The table below ranks all 50 states by effective rate on owner-occupied housing. Source: Tax Foundation, "Property Taxes by State and County, 2026," based on U.S. Census Bureau ACS data. The "tax per $100k value" column translates the percentage into a dollar figure that is easy to compare.

Rank	State	Effective Rate (2024)	Tax per $100k Value
1	New Jersey	1.88%	$1,880
2	Illinois	1.88%	$1,880
3	Connecticut	1.54%	$1,540
4	Vermont	1.51%	$1,510
5	New Hampshire	1.50%	$1,500
6	Nebraska	1.44%	$1,440
7	Texas	1.40%	$1,400
8	Ohio	1.36%	$1,360
9	Iowa	1.33%	$1,330
10	Wisconsin	1.32%	$1,320
11	New York	1.30%	$1,300
12	Pennsylvania	1.26%	$1,260
13	Kansas	1.21%	$1,210
14	Michigan	1.19%	$1,190
15	Rhode Island	1.12%	$1,120
16	Massachusetts	1.00%	$1,000
17	Minnesota	1.00%	$1,000
18	South Dakota	1.00%	$1,000
19	Maine	0.98%	$980
20	Alaska	0.94%	$940
21	Maryland	0.92%	$920
22	North Dakota	0.92%	$920
23	Missouri	0.89%	$890
24	Oregon	0.81%	$810
25	Georgia	0.79%	$790
26	Oklahoma	0.79%	$790
27	Florida	0.78%	$780
28	Virginia	0.78%	$780
29	Indiana	0.76%	$760
30	Washington	0.75%	$750
31	Kentucky	0.74%	$740
32	California	0.70%	$700
33	North Carolina	0.66%	$660
34	New Mexico	0.63%	$630
35	Montana	0.61%	$610
36	Mississippi	0.58%	$580
37	Arkansas	0.56%	$560
38	Louisiana	0.55%	$550
39	Delaware	0.54%	$540
40	Wyoming	0.53%	$530
41	Tennessee	0.52%	$520
42	West Virginia	0.51%	$510
43	Nevada	0.50%	$500
44	Colorado	0.50%	$500
45	Idaho	0.50%	$500
46	South Carolina	0.49%	$490
47	Arizona	0.48%	$480
48	Utah	0.48%	$480
49	Alabama	0.37%	$370
50	Hawaii	0.29%	$290

Figures are effective rates on owner-occupied housing, total real taxes paid divided by total home value. They exclude taxes paid by businesses and renters. District of Columbia (0.60%) is not ranked among states. Source: U.S. Census Bureau ACS, Tax Foundation calculations.

Why Do Rates Vary So Much?

States do not tax property in a vacuum. The level of property taxation is shaped by what other revenue tools a state uses. High property tax states (New Jersey, Illinois, Connecticut, Texas) often have low or no state income tax, or rely heavily on local government. Texas, for example, has no state income tax and leans on property taxes to fund schools. Low property tax states (Hawaii, Alabama, Louisiana, Wyoming, Colorado) typically fund services through other taxes or have constitutional limits on property taxation. Assessment practices also differ: some states reassess frequently at market value; others (like California under Prop 13) cap annual assessment growth at 2%, creating large gaps between long-time owners and new buyers.

Another driver is the reliance on local control. In states like New Jersey and Connecticut, school districts are funded almost entirely by local property taxes, and those districts set their own rates. In states with more state-level school funding, the local property burden is lighter. The division of fiscal responsibility between state and local government is the single biggest explainer of cross-state differences.

Regional Patterns

The Northeast and upper Midwest carry the heaviest residential property tax burdens. New Jersey (1.88%) and Illinois (1.88%) lead the nation. The South and Mountain West are generally lightest — Hawaii (0.29%), Alabama (0.37%), and Louisiana (0.55%) sit at the bottom. Western states like Colorado (0.50%) and Arizona (0.48%) also stay low. These patterns are stable year over year because they reflect deep structural choices about how each state raises revenue, not temporary fluctuations.

How to Use This Comparison

Statewide averages hide enormous county-to-county variation. A homeowner in Westchester County, NY pays far more than the New York state average; a Travis County, TX resident pays differently than someone in rural West Texas. To get your real number: find your state's effective rate above as a starting point; check your county and school district millage (see our county property tax pages); subtract any homestead or exemption you qualify for; then run the numbers in our free property tax calculator. The calculator applies your state's real parameters and gives an estimate you can plan around.

Does a Low Rate Mean a Low Bill?

Not always. The bill equals rate multiplied by home value. A 0.70% rate in California (high home values) can produce a larger dollar bill than a 1.36% rate in Ohio (lower home values). Always compare on total dollars, not just the percentage, and weigh the full tax picture including state income and sales taxes. A family considering a move should build a complete side-by-side budget rather than fixating on a single rate.

The Role of Exemptions and Caps

Two features can dramatically change your effective rate versus the statewide average: exemptions and assessment caps. A Texas homeowner with the 2026 $140,000 homestead exemption pays far less than the 1.40% raw rate suggests. A Florida homeowner protected by the Save Our Homes cap may see their assessed value grow at only 2.7% while their neighbors' homes appreciate 8%. These mechanisms mean the table above is a starting point, not your destiny — smart use of available relief is the practical way to lower a bill.

Frequently Asked Questions

Related Resources

• States with the Highest Property Taxes
• States with the Lowest Property Taxes
• How Property Tax Is Calculated
• Property Tax Rates by State (calculators)
• Tax Foundation — Property Taxes by State and County (primary source)

How to Read This Table

The ranking above is a starting point, not a verdict on any state. Three cautions keep you from misreading it. First, the figures are statewide effective rates on owner-occupied housing; your county and school district will differ, sometimes dramatically. Second, the rate already bakes in each state's exemptions and assessment practices, so it is the fairest cross-state comparison available — but it is still an average. Third, a low rate on a high-value home can produce a larger dollar bill than a high rate on a low-value home. Always convert to dollars using your own home value before drawing conclusions.

Five Takeaways for Relocation

• The Northeast and upper Midwest carry the heaviest residential burdens; the South and Mountain West are lightest.
• No-income-tax states (Texas, New Hampshire) lean on property tax to fund schools — expect a higher rate there.
• Assessment caps (California, Florida) create large gaps between long-time owners and new buyers; as a newcomer you pay near full value.
• Exemptions are the biggest homeowner lever and are frequently unclaimed — file every one you qualify for.
• Model total tax (property + income + sales), not property alone, when comparing states.

Property Tax in Context

In most U.S. states, property tax is the largest single source of local government revenue, funding schools, roads, police, fire, parks, and libraries. That is why a high rate often correlates with strong local services — and why cutting the rate usually means cutting a service or raising another tax. When you evaluate a state, weigh what the tax buys, not just what it costs. A community with excellent schools and safe streets may be worth a higher bill than a cheaper one with thin services.

Your Next Step

Use our free property tax calculator to turn these statewide averages into a number for your specific home value and state. Then check your county and school-district millage, subtract your exemptions, and you have a realistic annual estimate. Pair it with the state guides linked throughout this article for the relief programs that apply to you.

Quick Glossary

• Effective rate: total residential property tax paid divided by total owner-occupied home value.
• Millage: tax per $1,000 of assessed value; one mill = $1 per $1,000.
• Assessment ratio: the fraction of market value that is taxed.
• Exemption: a dollar amount subtracted from taxable value.