States with the Highest Property Taxes
Published: 2026-07-12 | Updated: 2026-07-12
Disclaimer: This article provides general educational information based on publicly available data. Property tax rules vary by state, county, and city. Confirm figures with your local tax assessor's office and a qualified tax professional before making decisions.
If you are house-hunting or considering a relocation, property tax burden deserves as much attention as the mortgage rate. The highest-tax states can add $5,000–$9,000 a year to the cost of owning a median home — and often far more in affluent suburban counties with top-rated schools. Yet many of those same states pair high property taxes with low or zero state income tax, which changes the calculus entirely. Judging a state by its property rate alone can lead to exactly the wrong decision.
Below we examine the ten states with the highest effective property tax rates on owner-occupied housing, using the Tax Foundation's 2024 data. For each, we explain why rates are high and what relief programs exist, so you can weigh the real trade-off rather than reacting to a single percentage. Understanding the mechanics is the difference between fear and a sound financial plan.
The Top 10 Highest-Tax States (2024 Effective Rates)
| State | Effective Rate | Annual Tax on $400k Home |
|---|---|---|
| New Jersey | 1.88% | $7,520 |
| Illinois | 1.88% | $7,520 |
| Connecticut | 1.54% | $6,160 |
| Vermont | 1.51% | $6,040 |
| New Hampshire | 1.50% | $6,000 |
| Nebraska | 1.44% | $5,760 |
| Texas | 1.40% | $5,600 |
| Ohio | 1.36% | $5,440 |
| Iowa | 1.33% | $5,320 |
| Wisconsin | 1.32% | $5,280 |
The table shows effective rates, which already reflect exemptions and assessment practices. A $400,000 home is used for illustration; your own home value will scale the dollar figure proportionally.
Why These States Tax So Heavily
New Jersey & Connecticut: Local Control, High Costs
New Jersey and Connecticut rely on locally controlled school districts and municipal services funded almost entirely by property taxes. Neither has a broad-based state income tax at the level that would offset the local burden, and New Jersey has among the highest per-pupil school spending in the country. The result is effective rates near 1.88%. Homeowners there often receive strong services in return, but the monthly carrying cost is real and compounds over decades of ownership.
Texas: No Income Tax, Heavy Property Tax
Texas has no state income tax, so it funds public schools largely through local property taxes. That pushes the statewide effective rate to 1.40%. The trade-off is genuine: Texas homeowners pay $0 in state income tax but face higher property bills. Texas does offer a large homestead exemption (detailed in our Texas guide) that softens the blow for owner-occupants, and seniors and disabled veterans receive even deeper relief.
Vermont & New Hampshire: Small Population, High Need
Both New England states have small populations spread across many towns, making per-household service costs high. New Hampshire famously has no broad sales or income tax, leaning almost entirely on property taxes. Vermont's education funding system concentrates cost on property as well, producing rates above 1.5% despite modest home values.
Illinois: Pensions & Cook County
Illinois's high rates are driven by large unfunded public-pension obligations and high levies in the Chicago metro area. The state's effective rate (1.88%) ties New Jersey for the highest in the nation, and the gap between longtime owners and new buyers can be stark because of how assessments are handled locally. The pension overhang is a structural issue unlikely to resolve quickly.
Nebraska, Ohio, Iowa, Wisconsin: Farm & Midwestern Patterns
These states fund schools and counties heavily through property tax, with assessment practices that keep effective rates above 1.3%. Agricultural land valuation adds complexity, but for homeowners the burden is simply higher than the national median. In Iowa and Nebraska especially, local school levies push rates past 1.3%.
Relief Programs in High-Tax States
High rates do not mean homeowners get no help:
- Texas — A mandatory $140,000 school-district homestead exemption for 2026 (raised from $100,000 by a 2025 constitutional amendment), plus an extra $60,000 for seniors/disabled and a 100% exemption for 100% disabled veterans. File Form 50-114 with your County Appraisal District by April 30.
- New York — The STAR program gives basic and enhanced school-tax relief to homeowners; enhanced STAR is for seniors 65+ with income limits.
- Connecticut — A circuit-breaker credit for seniors and disabled homeowners based on income.
- New Jersey — Senior/disabled/blind exemptions and a property-tax reimbursement program for seniors who moved after 2007.
- Illinois — A senior citizens' homestead exemption and a veterans' exemption at the county level.
- Ohio & Wisconsin — Homestead exemptions for seniors and disabled residents, plus the ability to appeal assessments aggressively.
Should You Avoid High-Tax States?
Not necessarily. Higher property taxes often correspond to strong schools, services, and infrastructure — and states like Texas and New Hampshire pair high property taxes with no state income tax. Compare your total tax picture (property + income + sales) and your take-home cost of living, not the property rate alone. A family in Texas paying 1.40% property tax but 0% state income tax may come out ahead of a family in a "low property tax" state with a high income tax. The right comparison is always total household burden.
A Worked Comparison
Consider two $500,000 homeowners. One in New Jersey (1.88%) pays about $9,400 in property tax. One in Hawaii (0.29%) pays about $1,450 — but Hawaii's high home values and reliance on other taxes mean the overall cost of living may still be higher. Meanwhile a Texan at 1.40% pays $7,000 in property tax but enjoys zero state income tax. The lesson: never judge a state by its property rate in isolation, and always model the full annual tax load.
Strategies to Reduce a High Bill
Even in the highest-tax states, homeowners have levers:
- Claim every exemption (homestead, senior, veteran, disability) — the biggest and most overlooked.
- Appeal over-assessments with comparable sales evidence.
- Use the SALT deduction on your federal return if you itemize (the 2026 cap rose to $40,400).
- Consider the total tax trade-off before relocating; sometimes a higher property rate is offset by lower income tax.
Frequently Asked Questions
Which state has the absolute highest property tax?
New Jersey and Illinois tie at 1.88% effective rate (Tax Foundation 2024). In dollar terms, a New Jersey homeowner on a median-value home pays the most annually.
Can I lower my bill in a high-tax state?
Yes — claim every exemption you qualify for (homestead, senior, veteran, disability), appeal over-assessments, and consider the SALT deduction on your federal return (see our deduction guide).
Do high-tax states have better schools?
Often, but not automatically. Funding correlates with spending, which correlates with property tax revenue, but district quality depends on many local factors. Research specific districts rather than assuming.
Related Resources
- Property Tax Rates by State 2026
- States with the Lowest Property Taxes
- How Property Tax Is Calculated
- Free Property Tax Calculator
County-Level Variation Inside High-Tax States
Statewide averages hide enormous local differences that matter more than the headline number. In New Jersey, the effective rate in some Hudson County municipalities exceeds 2.5%, while parts of southern New Jersey sit near 1.5% — a $400,000 home there ranges from $6,000 to $10,000 a year. In Illinois, the gap between Cook County and downstate rural counties is dramatic because school-funding referenda pass at different rates; a Chicago suburban homeowner can pay more than double a downstate homeowner on the same value. In Texas, a resident of a high-performing suburban district may face combined rates above 2.5% once city, county, school, and special-district levies stack, even though the state average is 1.40%. When you are house-hunting, always pull the specific county and school-district rate, not just the state figure — the difference can be thousands of dollars a year on the same-priced home.
The Income-Tax Offset
The single most important nuance for high-tax states is the trade with state income tax. The four archetypes:
- Texas, New Hampshire — high property tax but no broad state income tax. A high earner in Texas often pays less total tax than the same earner in a low-property-tax state with a high income tax.
- New Jersey, Connecticut, Illinois, New York — high property tax and high income tax. These are the true "high total burden" states, though they also tend to offer more services and amenities.
- Vermont, Wisconsin, Ohio, Iowa, Nebraska — high property tax with moderate income tax; the combined picture is still above the national median.
- California — moderate property tax (0.70% thanks to Prop 13) but a high top income-tax rate, so total burden depends heavily on income level.
A useful exercise: take your expected income and home value, then model property plus state income plus state sales tax in each candidate state. Our state comparison tool lets you line up two states side by side. The state with the highest property rate is rarely the most expensive once income tax is counted.
How to Appeal an Assessment in a High-Tax State
Because high-tax states also tend to have frequent reassessments, they produce the most appeal opportunities. In New Jersey and Illinois especially, a successful appeal can cut your bill by hundreds or thousands of dollars a year, and the reduction usually persists until the next reassessment. Gather three to five recent sales of comparable homes near you, document condition differences, and file with your county board of taxation by the deadline (often spring). If the first level denies you, most states allow a further appeal to a state tax commission. The cost is mostly your time; the upside is recurring and compounds over your ownership.
High-Tax States at a Glance
| State | Property Rate | State Income Tax | Net Takeaway |
|---|---|---|---|
| Texas | High (1.40%) | None | Favorable for high earners |
| New Hampshire | High (1.50%) | None (interest/div only) | Favorable for high earners |
| New Jersey | High (1.88%) | High | Highest total burden |
| Illinois | High (1.88%) | Moderate-High | High total burden |
Bottom Line
High property-tax states are not automatically bad places to own a home. They frequently deliver strong schools, services, and — in the case of Texas and New Hampshire — freedom from state income tax. The disciplined approach is to (1) learn the specific county and district rate, not the state average; (2) claim every exemption you qualify for; (3) appeal when your assessment looks high; and (4) model total tax, not property tax alone. Do those four things and even a 1.88% state becomes manageable.
One More Myth
A final misconception deserves calling out: that a high statewide rank means you should never live there. In practice, total tax burden, services, schools, and lifestyle matter more than a single percentage. Texas and New Hampshire rank high on property tax but low or zero on income tax; many residents there come out ahead. Use the ranking to ask better questions, not to rule out a state. And remember that the highest-burden states also tend to fund the strongest local services — the rate is a choice about priorities, not a penalty.