States With the Highest (and Lowest) Property Taxes

March 28, 2018 by Evan Comen

Source: hikesterson / iStock
Property taxes are the primary source of tax revenue for the majority of state and local governments, comprising 31.3% of collections nationwide. Property taxes support public education, police and fire protection, local government operations, and other local infrastructure. While nearly every municipality levies some form of property tax, tax burdens vary widely across states.

To determine the states with the highest and lowest property taxes, 24/7 Wall St. reviewed the effective property tax rate — the total amount of property taxes paid in 2015 as a percentage of the total value of all occupied homes — for all 50 states with data from the Tax Foundation.

Nationwide, the average property tax amounts to 1.1% of the value of the average U.S. home. Effective property tax rates range from 0.3% in Hawaii to 2.1% in New Jersey.

Unlike other major types of taxes, property taxes tend to be the principal revenue source for local government. This means taxpayers can more easily observe the services their money is funding. Discussing the local aspect of property taxation in an interview with 24/7 Wall St., Nicole Kaeding, director of special products at the Tax Foundation, said, “Sometimes individuals are willing to pay higher taxes for government services.”

A good example is education spending. In 17 of the 25 states with the highest effective property tax rates, per-pupil school funding exceeds the national average. This is the case in only eight of the 25 states with the lowest effective property tax rates.

Click here to see the full list of the states with the highest (and lowest) property taxes.
Click here to see our detailed findings and methodology.

Source: Thinkstock

50. Hawaii
> Effective property tax rate: 0.3%
> Median home value: $592,000 (the highest)
> Per capita property tax collections: $980 (17th lowest)
> Median household income: $74,511 (5th highest)

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49. Alabama
> Effective property tax rate: 0.4%
> Median home value: $136,200 (7th lowest)
> Per capita property tax collections: $522 (the lowest)
> Median household income: $46,257 (5th lowest)

Source: Thinkstock

48. Louisiana
> Effective property tax rate: 0.5%
> Median home value: $158,000 (16th lowest)
> Per capita property tax collections: $839 (8th lowest)
> Median household income: $45,146 (4th lowest)

Source: Thinkstock

47. West Virginia
> Effective property tax rate: 0.5%
> Median home value: $117,900 (2nd lowest)
> Per capita property tax collections: $852 (9th lowest)
> Median household income: $43,385 (2nd lowest)

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Source: Thinkstock

46. Wyoming
> Effective property tax rate: 0.5%
> Median home value: $209,500 (21st highest)
> Per capita property tax collections: $2,109 (9th highest)
> Median household income: $59,882 (19th highest)

Source: Thinkstock

45. South Carolina
> Effective property tax rate: 0.5%
> Median home value: $153,900 (14th lowest)
> Per capita property tax collections: $1,080 (19th lowest)
> Median household income: $49,501 (10th lowest)

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44. Colorado
> Effective property tax rate: 0.6%
> Median home value: $314,200 (5th highest)
> Per capita property tax collections: $1,365 (23rd highest)
> Median household income: $65,685 (12th highest)

Source: Thinkstock

43. Delaware
> Effective property tax rate: 0.6%
> Median home value: $243,400 (16th highest)
> Per capita property tax collections: $828 (6th lowest)
> Median household income: $61,757 (15th highest)

Source: Thinkstock

42. Arkansas
> Effective property tax rate: 0.6%
> Median home value: $123,300 (3rd lowest)
> Per capita property tax collections: $675 (3rd lowest)
> Median household income: $44,334 (3rd lowest)

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Source: Thinkstock

41. Mississippi
> Effective property tax rate: 0.6%
> Median home value: $113,900 (the lowest)
> Per capita property tax collections: $916 (10th lowest)
> Median household income: $41,754 (the lowest)

Source: Thinkstock

40. Utah
> Effective property tax rate: 0.6%
> Median home value: $250,300 (14th highest)
> Per capita property tax collections: $969 (15th lowest)
> Median household income: $65,977 (11th highest)

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Source: Thinkstock

39. New Mexico
> Effective property tax rate: 0.7%
> Median home value: $167,500 (21st lowest)
> Per capita property tax collections: $731 (4th lowest)
> Median household income: $46,748 (7th lowest)

Source: Thinkstock

38. Arizona
> Effective property tax rate: 0.7%
> Median home value: $205,900 (22nd highest)
> Per capita property tax collections: $986 (18th lowest)
> Median household income: $53,558 (20th lowest)

Source: Thinkstock

37. Nevada
> Effective property tax rate: 0.7%
> Median home value: $239,500 (17th highest)
> Per capita property tax collections: $953 (13th lowest)
> Median household income: $55,180 (24th lowest)

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Source: Thinkstock

36. California
> Effective property tax rate: 0.7%
> Median home value: $477,500 (2nd highest)
> Per capita property tax collections: $1,385 (22nd highest)
> Median household income: $67,739 (9th highest)

Source: Thinkstock

35. Tennessee
> Effective property tax rate: 0.7%
> Median home value: $157,700 (15th lowest)
> Per capita property tax collections: $830 (7th lowest)
> Median household income: $48,547 (8th lowest)

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Source: Thinkstock

34. Idaho
> Effective property tax rate: 0.7%
> Median home value: $189,400 (24th highest)
> Per capita property tax collections: $928 (11th lowest)
> Median household income: $51,807 (15th lowest)

Source: Thinkstock

33. Montana
> Effective property tax rate: 0.7%
> Median home value: $217,200 (19th highest)
> Per capita property tax collections: $1,465 (17th highest)
> Median household income: $50,027 (11th lowest)

Source: Thinkstock

32. Kentucky
> Effective property tax rate: 0.8%
> Median home value: $135,600 (6th lowest)
> Per capita property tax collections: $737 (5th lowest)
> Median household income: $46,659 (6th lowest)

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Source: Thinkstock

31. North Carolina
> Effective property tax rate: 0.8%
> Median home value: $165,400 (19th lowest)
> Per capita property tax collections: $951 (12th lowest)
> Median household income: $50,584 (12th lowest)

Source: Thinkstock

30. Oklahoma
> Effective property tax rate: 0.8%
> Median home value: $132,200 (4th lowest)
> Per capita property tax collections: $623 (2nd lowest)
> Median household income: $49,176 (9th lowest)

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Source: Thinkstock

29. Virginia
> Effective property tax rate: 0.8%
> Median home value: $264,000 (12th highest)
> Per capita property tax collections: $1,457 (18th highest)
> Median household income: $68,114 (8th highest)

Source: Thinkstock

28. Indiana
> Effective property tax rate: 0.8%
> Median home value: $134,800 (5th lowest)
> Per capita property tax collections: $970 (16th lowest)
> Median household income: $52,314 (16th lowest)

Source: Thinkstock

27. North Dakota
> Effective property tax rate: 0.9%
> Median home value: $184,100 (24th lowest)
> Per capita property tax collections: $1,121 (21st lowest)
> Median household income: $60,656 (17th highest)

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26. Georgia
> Effective property tax rate: 0.9%
> Median home value: $166,800 (20th lowest)
> Per capita property tax collections: $1,087 (20th lowest)
> Median household income: $53,559 (21st lowest)

Source: Thinkstock

25. Washington
> Effective property tax rate: 0.9%
> Median home value: $306,400 (7th highest)
> Per capita property tax collections: $1,364 (24th highest)
> Median household income: $67,106 (10th highest)

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24. Florida
> Effective property tax rate: 0.9%
> Median home value: $197,700 (23rd highest)
> Per capita property tax collections: $1,184 (22nd lowest)
> Median household income: $50,860 (13th lowest)

Source: Thinkstock

23. Alaska
> Effective property tax rate: 1.0%
> Median home value: $267,800 (11th highest)
> Per capita property tax collections: $2,639 (4th highest)
> Median household income: $76,440 (2nd highest)

Source: Thinkstock

22. Oregon
> Effective property tax rate: 1.0%
> Median home value: $287,100 (9th highest)
> Per capita property tax collections: $1,350 (25th highest)
> Median household income: $57,532 (21st highest)

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21. Missouri
> Effective property tax rate: 1.0%
> Median home value: $151,400 (13th lowest)
> Per capita property tax collections: $960 (14th lowest)
> Median household income: $51,746 (14th lowest)

Source: Thinkstock

20. Maryland
> Effective property tax rate: 1.0%
> Median home value: $306,900 (6th highest)
> Per capita property tax collections: $1,491 (16th highest)
> Median household income: $78,945 (the highest)

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19. Minnesota
> Effective property tax rate: 1.1%
> Median home value: $211,800 (20th highest)
> Per capita property tax collections: $1,411 (20th highest)
> Median household income: $65,599 (13th highest)

Source: Thinkstock

18. Massachusetts
> Effective property tax rate: 1.1%
> Median home value: $366,900 (3rd highest)
> Per capita property tax collections: $2,181 (8th highest)
> Median household income: $75,297 (4th highest)

Source: Thinkstock

17. South Dakota
> Effective property tax rate: 1.2%
> Median home value: $160,700 (17th lowest)
> Per capita property tax collections: $1,301 (24th lowest)
> Median household income: $54,467 (22nd lowest)

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16. Maine
> Effective property tax rate: 1.2%
> Median home value: $184,700 (25th lowest)
> Per capita property tax collections: $1,918 (11th highest)
> Median household income: $53,079 (19th lowest)

Source: Thinkstock

15. Kansas
> Effective property tax rate: 1.3%
> Median home value: $144,900 (10th lowest)
> Per capita property tax collections: $1,435 (19th highest)
> Median household income: $54,935 (23rd lowest)

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14. New York
> Effective property tax rate: 1.4%
> Median home value: $302,400 (8th highest)
> Per capita property tax collections: $2,581 (5th highest)
> Median household income: $62,909 (14th highest)

Source: Thinkstock

13. Michigan
> Effective property tax rate: 1.4%
> Median home value: $147,100 (11th lowest)
> Per capita property tax collections: $1,335 (25th lowest)
> Median household income: $52,492 (18th lowest)

Source: Thinkstock

12. Iowa
> Effective property tax rate: 1.4%
> Median home value: $142,300 (9th lowest)
> Per capita property tax collections: $1,525 (15th highest)
> Median household income: $56,247 (25th lowest)

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11. Pennsylvania
> Effective property tax rate: 1.5%
> Median home value: $174,100 (23rd lowest)
> Per capita property tax collections: $1,405 (21st highest)
> Median household income: $56,907 (23rd highest)

Source: Thinkstock

10. Rhode Island
> Effective property tax rate: 1.5%
> Median home value: $247,700 (15th highest)
> Per capita property tax collections: $2,307 (7th highest)
> Median household income: $60,596 (18th highest)

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9. Ohio
> Effective property tax rate: 1.6%
> Median home value: $140,100 (8th lowest)
> Per capita property tax collections: $1,203 (23rd lowest)
> Median household income: $52,334 (17th lowest)

Source: Thinkstock

8. Nebraska
> Effective property tax rate: 1.6%
> Median home value: $148,100 (12th lowest)
> Per capita property tax collections: $1,757 (12th highest)
> Median household income: $56,927 (22nd highest)

Source: Thinkstock

7. Texas
> Effective property tax rate: 1.6%
> Median home value: $161,500 (18th lowest)
> Per capita property tax collections: $1,635 (14th highest)
> Median household income: $56,565 (25th highest)

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6. Connecticut
> Effective property tax rate: 1.7%
> Median home value: $274,600 (10th highest)
> Per capita property tax collections: $2,774 (3rd highest)
> Median household income: $73,433 (6th highest)

Source: Thinkstock

5. Vermont
> Effective property tax rate: 1.7%
> Median home value: $223,700 (18th highest)
> Per capita property tax collections: $2,339 (6th highest)
> Median household income: $57,677 (20th highest)

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4. Wisconsin
> Effective property tax rate: 1.7%
> Median home value: $173,200 (22nd lowest)
> Per capita property tax collections: $1,657 (13th highest)
> Median household income: $56,811 (24th highest)

Source: Thinkstock

3. Illinois
> Effective property tax rate: 2.0%
> Median home value: $186,500 (25th highest)
> Per capita property tax collections: $2,007 (10th highest)
> Median household income: $60,960 (16th highest)

Source: Thinkstock

2. New Hampshire
> Effective property tax rate: 2.0%
> Median home value: $251,100 (13th highest)
> Per capita property tax collections: $2,861 (2nd highest)
> Median household income: $70,936 (7th highest)

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Source: Thinkstock

1. New Jersey
> Effective property tax rate: 2.1%
> Median home value: $328,200 (4th highest)
> Per capita property tax collections: $3,065 (the highest)
> Median household income: $76,126 (3rd highest)

Detailed Findings & Methodology

States collect property taxes in a variety of ways. Some states impose a millage, charging a tax amount per thousand dollars on the fair market value of a property. Other states may only charge taxes on a percentage of the property’s assessed market value. States also have different rules as to how property taxes are charged throughout their municipalities — some require uniform taxes throughout the state, some impose caps on how much property taxes can rise in a year, and some also offer tax abatements for veterans and senior citizens.

As Kaeding noted, each state has its own unique blend of taxes to maintain a balanced accounting. So states with low property tax rates do not necessarily have low tax burdens overall.

In California, for example, state and local property taxes amount to just 0.7% of the total value of all occupied housing units in the state, far less than the 1.1% national figure. Still, California residents paid $5,237 per capita in taxes in fiscal 2012, which amounted to 11.0% of the average resident’s income that year — both figures some of the highest of any state. New Hampshire, which has the second highest property tax rate in the country, has one of the lowest overall tax burdens of any state.

Most states with low property tax rates compensate by levying taxes on other assets. While on average property tax is the largest source of state and local tax revenue nationwide, it is the primary source of state and local tax revenue in just 8 of the 32 states with effective property tax rates below the 1.1% national figure. In Hawaii, Alabama, and Louisiana — the states with the three lowest property tax rates — sales taxes comprise the lion’s share of state and local tax revenues. In Utah and California, which also have some of the lower property tax rates of any state, individual income taxes are the primary source of state and local tax revenues.

When accounting for sales, income, and other taxes, just three of the states with the top 10 lowest property tax rates — South Carolina, Louisiana, and Wyoming — are also among the top 10 states with the lowest tax burdens overall.

According to the Tax Foundation, urban areas often have the largest tax burdens.

The three states with the highest tax burdens overall are New York, Connecticut, and New Jersey — which are some of the most urban states in the country.

To determine the states with the highest and lowest property taxes, 24/7 Wall St. reviewed the effective property tax rate for the 2015 calendar year for all 50 states with data from the Tax Foundation. The effective property tax rate is the total amount of real property taxes paid in 2015 as a percentage of the total value of all owner-occupied housing units. Taxes paid by businesses, renters, and others were excluded from the Tax Foundation’s calculation. Total state and local tax collections per capita for fiscal 2012, state and local tax collections per capita as a share of income for fiscal 2012, and the source of tax collections by tax type for fiscal 2014 also came from the Tax Foundation. Data on median home value and median household income are for 2016 and came from the U.S. Census Bureau’s American Community Survey. All data are for the most recent period available.