Special Report

States With the Highest (and Lowest) Property Taxes

Thomas C. Frohlich

Published: February 8, 2016 5:49 pm

Last Updated: January 13, 2020 1:28 pm

For Americans across the nation, housing expenses are typically the largest costs of living. Not only is a house the biggest purchase in most Americans’ lives, but also monthly rent or mortgage payments often exceed what is spent on food, luxury, savings, and transportation combined. Similarly, property taxes make up the bulk of taxes paid each year by most people in the United States.

Property taxation is almost always done at the state and local level. A range of government bodies, including cities, counties, school boards, safety departments, and utility commissions, levy property taxes in a variety of ways.

Of the $3.1 trillion in taxes the federal government collected in fiscal 2014, more than two-thirds came from income and payroll taxes. Only 1% came from estate and trust taxes — levied on the exchange of property after death and perhaps the only federal tax that could be considered a property tax.

Click here to see the states with the highest (and lowest) property taxes.

Using data from the Tax Foundation, 24/7 Wall St. reviewed property taxes paid in each state as a percentage of home values. The effective property tax rate is as high as 2.38% in New Jersey, and as low as 0.28% in Hawaii.

Compared to sales, income, corporate, and other forms of taxation, property taxes make up the largest share of state and local tax collections in 26 states. In most cases this was due to the high effective tax rate. In a few states the absence of other major tax types could explain the disproportionate reliance on property taxation. Of the 25 states with the highest property tax rates, Delaware, Wyoming, Virginia, Montana, and Nevada residents do not pay at least one major tax whatsoever. Six of the 25 states levying the lowest property tax rates also do not have at least one major tax.

In 16 of the top 25 states, property taxes make up at least a third of state and local tax collections. In New Hampshire, more than two-thirds of state and local taxes come from property taxes. Of the 25 states collecting the lowest property tax rates, property taxes accounted for one-third or more of collections in only four states. General sales or other taxes tended to comprise the bulk of taxes collected by these states.

Home values are taken into consideration by state and local governments when determining property tax rates. Values can also often dictate how much revenue state and local governments collect in the form of property taxes. However, the states with the highest property tax rates do not necessarily have the most expensive housing markets, nor do low-tax states necessarily have relatively low home values.

New Jersey, New Hampshire, Vermont, Connecticut, and New York are each home to some of the highest property tax rates nationwide as well as some of the highest home values. Other states such as Wisconsin, Texas, and Nebraska, however, also have relatively high property tax rates but also below average home values.

Hawaii, where the typical owner-occupied housing unit is valued at $528,000 — the highest in the country — also has the lowest effective property tax rate of any state.

To identify the states with the highest and lowest property taxes, 24/7 Wall St. reviewed 2013 average effective property tax rates on owner-occupied housing in each state from the Tax Foundation. Taxes paid by businesses, renters, and others were excluded from the Tax Foundation’s calculation. Total property tax collections per capita from 2006 through 2013, the sources of tax collections by tax type for 2012, and state and local tax burdens as a percentage of state income for each state in 2013 also came from the Tax Foundation. Property tax collections are based on the average property tax deduction taken on the Schedule A, per tax return, from the Internal Revenue Service (IRS). While this is not equivalent to the average property collections at the state level, this estimate is often used as an estimate. Cost of living figures in 2013 for each state came from the Bureau of Economic Analysis (BEA). Household median income, median home value, and poverty rates came from the U.S. Census Bureau’s 2014 American Community Survey (ACS).

These are the states with the highest and lowest property tax rates.

Source: Thinkstock

50. Hawaii
>Effective property tax rate: 0.28%
> Median home value: $528,000 (the highest)
> Property taxes paid per tax return: $1,993 (5th lowest)
> County paying the most in real estate taxes: Kauai County
> Property taxes paid per tax return in Kauai County: $2,074

Source: Thinkstock

49. Alabama
>Effective property tax rate: 0.43%
> Median home value: $125,600 (7th lowest)
> Property taxes paid per tax return: $1,352 (the lowest)
> County paying the most in real estate taxes: Jefferson County
> Property taxes paid per tax return in Jefferson County: $2,196

Source: Thinkstock

48. Louisiana
>Effective property tax rate: 0.51%
> Median home value: $143,600 (18th lowest)
> Property taxes paid per tax return: $2,076 (7th lowest)
> County paying the most in real estate taxes: Orleans Parish
> Property taxes paid per tax return in Orleans Parish: $3,945

Source: Thinkstock

47. Delaware
>Effective property tax rate: 0.55%
> Median home value: $230,500 (15th highest)
> Property taxes paid per tax return: $2,532 (16th lowest)
> County paying the most in real estate taxes: New Castle County
> Property taxes paid per tax return in New Castle County: $2,893

Source: https://commons.wikimedia.org/wiki/File:Beaufort,_South_Carolina_09.JPG

46. South Carolina
>Effective property tax rate: 0.57%
> Median home value: $140,000 (15th lowest)
> Property taxes paid per tax return: $2,041 (6th lowest)
> County paying the most in real estate taxes: Beaufort County
> Property taxes paid per tax return in Beaufort County: $3,510

Source: Thinkstock

45. West Virginia
>Effective property tax rate: 0.59%
> Median home value: $103,900 (the lowest)
> Property taxes paid per tax return: $1,546 (2nd lowest)
> County paying the most in real estate taxes: Jefferson County
> Property taxes paid per tax return in Jefferson County: $1,892

Source: Thinkstock

44. Colorado
>Effective property tax rate: 0.61%
> Median home value: $255,200 (9th highest)
> Property taxes paid per tax return: $2,555 (17th lowest)
> County paying the most in real estate taxes: Pitkin County
> Property taxes paid per tax return in Pitkin County: $6,653

Source: Thinkstock

43. Wyoming
>Effective property tax rate: 0.61%
> Median home value: $201,000 (18th highest)
> Property taxes paid per tax return: $2,457 (13th lowest)
> County paying the most in real estate taxes: Teton County
> Property taxes paid per tax return in Teton County: $9,283

Source: Thinkstock

42. Arkansas
>Effective property tax rate: 0.62%
> Median home value: $112,500 (3rd lowest)
> Property taxes paid per tax return: $1,791 (3rd lowest)
> County paying the most in real estate taxes: Pulaski County
> Property taxes paid per tax return in Pulaski County: $2,531

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Source: Thinkstock

41. Utah
>Effective property tax rate: 0.68%
> Median home value: $223,200 (16th highest)
> Property taxes paid per tax return: $2,261 (10th lowest)
> County paying the most in real estate taxes: Summit County
> Property taxes paid per tax return in Summit County: $4,290

Source: Thinkstock

40. New Mexico
>Effective property tax rate: 0.73%
> Median home value: $158,400 (21st lowest)
> Property taxes paid per tax return: $2,480 (15th lowest)
> County paying the most in real estate taxes: Santa Fe County
> Property taxes paid per tax return in Santa Fe County: $2,897

Source: Thinkstock

39. Idaho
>Effective property tax rate: 0.75%
> Median home value: $165,300 (25th lowest)
> Property taxes paid per tax return: $2,303 (11th lowest)
> County paying the most in real estate taxes: Blaine County
> Property taxes paid per tax return in Blaine County: $5,292

Source: Thinkstock

38. Tennessee
>Effective property tax rate: 0.75%
> Median home value: $142,900 (17th lowest)
> Property taxes paid per tax return: $2,640 (19th lowest)
> County paying the most in real estate taxes: Shelby County
> Property taxes paid per tax return in Shelby County: $3,767

Source: Wikimedia Commons

37. Virginia
>Effective property tax rate: 0.78%
> Median home value: $247,800 (11th highest)
> Property taxes paid per tax return: $3,727 (21st highest)
> County paying the most in real estate taxes: Falls Church city
> Property taxes paid per tax return in Falls Church city: $8,516

Source: Thinkstock

36. Arizona
>Effective property tax rate: 0.8%
> Median home value: $176,700 (22nd highest)
> Property taxes paid per tax return: $2,479 (14th lowest)
> County paying the most in real estate taxes: Pima County
> Property taxes paid per tax return in Pima County: $2,946

Source: Thinkstock

35. Mississippi
>Effective property tax rate: 0.8%
> Median home value: $104,000 (2nd lowest)
> Property taxes paid per tax return: $1,931 (4th lowest)
> County paying the most in real estate taxes: Madison County
> Property taxes paid per tax return in Madison County: $2,713

Source: Thinkstock

34. California
>Effective property tax rate: 0.81%
> Median home value: $412,700 (2nd highest)
> Property taxes paid per tax return: $5,219 (9th highest)
> County paying the most in real estate taxes: Marin County
> Property taxes paid per tax return in Marin County: $9,283

Source: Thinkstock

33. Kentucky
>Effective property tax rate: 0.85%
> Median home value: $123,800 (5th lowest)
> Property taxes paid per tax return: $2,231 (9th lowest)
> County paying the most in real estate taxes: Oldham County
> Property taxes paid per tax return in Oldham County: $3,562

Source: Thinkstock

32. North Carolina
>Effective property tax rate: 0.85%
> Median home value: $155,000 (20th lowest)
> Property taxes paid per tax return: $2,750 (21st lowest)
> County paying the most in real estate taxes: Orange County
> Property taxes paid per tax return in Orange County: $5,594

Source: Thinkstock

31. Indiana
>Effective property tax rate: 0.86%
> Median home value: $124,300 (6th lowest)
> Property taxes paid per tax return: $2,170 (8th lowest)
> County paying the most in real estate taxes: Boone County
> Property taxes paid per tax return in Boone County: $3,641

Source: Wikimedia Commons

30. Montana
>Effective property tax rate: 0.86%
> Median home value: $196,800 (19th highest)
> Property taxes paid per tax return: $2,631 (18th lowest)
> County paying the most in real estate taxes: Missoula County
> Property taxes paid per tax return in Missoula County: $3,326

Source: Thinkstock

29. Nevada
>Effective property tax rate: 0.86%
> Median home value: $192,100 (20th highest)
> Property taxes paid per tax return: $2,790 (22nd lowest)
> County paying the most in real estate taxes: Douglas County
> Property taxes paid per tax return in Douglas County: $3,984

Source: Thinkstock

28. Oklahoma
>Effective property tax rate: 0.86%
> Median home value: $119,800 (4th lowest)
> Property taxes paid per tax return: $2,389 (12th lowest)
> County paying the most in real estate taxes: Tulsa County
> Property taxes paid per tax return in Tulsa County: $3,104

Source: Thinkstock

27. Georgia
>Effective property tax rate: 0.95%
> Median home value: $147,900 (19th lowest)
> Property taxes paid per tax return: $2,736 (20th lowest)
> County paying the most in real estate taxes: Greene County
> Property taxes paid per tax return in Greene County: $4,976

Source: Thinkstock

26. Missouri
>Effective property tax rate: 1.02%
> Median home value: $138,500 (13th lowest)
> Property taxes paid per tax return: $2,851 (23rd lowest)
> County paying the most in real estate taxes: St. Louis County
> Property taxes paid per tax return in St. Louis County: $4,124

Source: Thinkstock

25. Florida
>Effective property tax rate: 1.06%
> Median home value: $162,700 (23rd lowest)
> Property taxes paid per tax return: $4,591 (13th highest)
> County paying the most in real estate taxes: Collier County
> Property taxes paid per tax return in Collier County: $8,445

Source: Thinkstock

24. Oregon
>Effective property tax rate: 1.09%
> Median home value: $239,800 (12th highest)
> Property taxes paid per tax return: $3,768 (20th highest)
> County paying the most in real estate taxes: Clackamas County
> Property taxes paid per tax return in Clackamas County: $4,574

Source: Thinkstock

23. Washington
>Effective property tax rate: 1.09%
> Median home value: $266,200 (8th highest)
> Property taxes paid per tax return: $4,210 (15th highest)
> County paying the most in real estate taxes: San Juan County
> Property taxes paid per tax return in San Juan County: $5,417

Source: Thinkstock

22. Maryland
>Effective property tax rate: 1.1%
> Median home value: $288,500 (5th highest)
> Property taxes paid per tax return: $4,218 (14th highest)
> County paying the most in real estate taxes: Howard County
> Property taxes paid per tax return in Howard County: $5,903

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21. North Dakota
>Effective property tax rate: 1.11%
> Median home value: $161,800 (22nd lowest)
> Property taxes paid per tax return: $3,264 (24th lowest)
> County paying the most in real estate taxes: Cass County
> Property taxes paid per tax return in Cass County: $4,130

Source: Thinkstock

20. Alaska
>Effective property tax rate: 1.18%
> Median home value: $254,500 (10th highest)
> Property taxes paid per tax return: $4,145 (16th highest)
> County paying the most in real estate taxes: Anchorage Municipality
> Property taxes paid per tax return in Anchorage Municipality: $4,787

Source: Thinkstock

19. Minnesota
>Effective property tax rate: 1.19%
> Median home value: $188,300 (21st highest)
> Property taxes paid per tax return: $3,446 (24th highest)
> County paying the most in real estate taxes: Hennepin County
> Property taxes paid per tax return in Hennepin County: $4,598

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Source: Thinkstock

18. Massachusetts
>Effective property tax rate: 1.21%
> Median home value: $338,900 (3rd highest)
> Property taxes paid per tax return: $5,739 (6th highest)
> County paying the most in real estate taxes: Middlesex County
> Property taxes paid per tax return in Middlesex County: $6,881

Source: Thinkstock

17. Maine
>Effective property tax rate: 1.28%
> Median home value: $174,800 (23rd highest)
> Property taxes paid per tax return: $4,061 (17th highest)
> County paying the most in real estate taxes: Cumberland County
> Property taxes paid per tax return in Cumberland County: $4,931

Source: Thinkstock

16. South Dakota
>Effective property tax rate: 1.32%
> Median home value: $142,300 (16th lowest)
> Property taxes paid per tax return: $3,640 (23rd highest)
> County paying the most in real estate taxes: Union County
> Property taxes paid per tax return in Union County: $5,276

Source: Thinkstock

15. Kansas
>Effective property tax rate: 1.39%
> Median home value: $132,100 (10th lowest)
> Property taxes paid per tax return: $3,302 (25th lowest)
> County paying the most in real estate taxes: Johnson County
> Property taxes paid per tax return in Johnson County: $3,919

Source: Thinkstock

14. Iowa
>Effective property tax rate: 1.49%
> Median home value: $133,100 (11th lowest)
> Property taxes paid per tax return: $3,306 (25th highest)
> County paying the most in real estate taxes: Johnson County
> Property taxes paid per tax return in Johnson County: $4,138

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13. Pennsylvania
>Effective property tax rate: 1.54%
> Median home value: $165,400 (25th highest)
> Property taxes paid per tax return: $4,853 (11th highest)
> County paying the most in real estate taxes: Delaware County
> Property taxes paid per tax return in Delaware County: $6,779

Source: Thinkstock

12. Ohio
>Effective property tax rate: 1.55%
> Median home value: $129,100 (9th lowest)
> Property taxes paid per tax return: $3,874 (19th highest)
> County paying the most in real estate taxes: Delaware County
> Property taxes paid per tax return in Delaware County: $5,815

Source: Thinkstock

11. New York
>Effective property tax rate: 1.64%
> Median home value: $279,100 (6th highest)
> Property taxes paid per tax return: $8,208 (2nd highest)
> County paying the most in real estate taxes: Westchester County
> Property taxes paid per tax return in Westchester County: $14,360

Source: Thinkstock

10. Rhode Island
>Effective property tax rate: 1.67%
> Median home value: $236,000 (14th highest)
> Property taxes paid per tax return: $5,214 (10th highest)
> County paying the most in real estate taxes: Bristol County
> Property taxes paid per tax return in Bristol County: $7,112

Source: Thinkstock

9. Vermont
>Effective property tax rate: 1.71%
> Median home value: $214,600 (17th highest)
> Property taxes paid per tax return: $5,516 (8th highest)
> County paying the most in real estate taxes: Windsor County
> Property taxes paid per tax return in Windsor County: $6,533

Source: Thinkstock

8. Michigan
>Effective property tax rate: 1.78%
> Median home value: $125,700 (8th lowest)
> Property taxes paid per tax return: $3,716 (22nd highest)
> County paying the most in real estate taxes: Washtenaw County
> Property taxes paid per tax return in Washtenaw County: $5,271

Source: Thinkstock

7. Nebraska
>Effective property tax rate: 1.84%
> Median home value: $133,800 (12th lowest)
> Property taxes paid per tax return: $3,941 (18th highest)
> County paying the most in real estate taxes: Douglas County
> Property taxes paid per tax return in Douglas County: $4,551

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Source: Thinkstock

6. Texas
>Effective property tax rate: 1.9%
> Median home value: $139,600 (14th lowest)
> Property taxes paid per tax return: $5,615 (7th highest)
> County paying the most in real estate taxes: Travis County
> Property taxes paid per tax return in Travis County: $7,554

Source: Thinkstock

5. Wisconsin
>Effective property tax rate: 1.96%
> Median home value: $164,700 (24th lowest)
> Property taxes paid per tax return: $4,622 (12th highest)
> County paying the most in real estate taxes: Menominee County
> Property taxes paid per tax return in Menominee County: $6,483

Source: Thinkstock

4. Connecticut
>Effective property tax rate: 1.98%
> Median home value: $267,200 (7th highest)
> Property taxes paid per tax return: $7,294 (3rd highest)
> County paying the most in real estate taxes: Fairfield County
> Property taxes paid per tax return in Fairfield County: $10,189

Source: https://www.flickr.com/photos/kenlund/

3. New Hampshire
>Effective property tax rate: 2.15%
> Median home value: $236,400 (13th highest)
> Property taxes paid per tax return: $6,954 (4th highest)
> County paying the most in real estate taxes: Grafton County
> Property taxes paid per tax return in Grafton County: $7,684

Source: Thinkstock

2. Illinois
>Effective property tax rate: 2.32%
> Median home value: $171,900 (24th highest)
> Property taxes paid per tax return: $6,357 (5th highest)
> County paying the most in real estate taxes: Lake County
> Property taxes paid per tax return in Lake County: $9,355

Source: Thinkstock

1. New Jersey
>Effective property tax rate: 2.38%
> Median home value: $313,200 (4th highest)
> Property taxes paid per tax return: $8,943 (the highest)
> County paying the most in real estate taxes: Essex County
> Property taxes paid per tax return in Essex County: $11,641