Home sales surged in the United States in the early months of the pandemic. From the first quarter of 2020 to the second, the homeownership rate in the U.S. climbed from 65.3% to 67.9% – the largest quarterly increase since record keeping began in the mid 1960s. And while owning a home offers several advantages over renting, it also comes with added expenses – not the least of which are property taxes.
Property taxes, specifically those on land and residential structures, are typically levied at the local level, by cities, counties, or school districts. State governments also often impose additional taxes on personal property such as cars or boats.
Typically used for funding public services such as schools, law enforcement, and infrastructure improvements, property taxes are the lifeblood of local communities across the United States. Nationwide, property taxes accounted for 32.2% of all state and local tax revenue in fiscal 2020, more than any other tax, including sales and income taxes. Depending on the state, property taxes account for anywhere from 16.8% to 64.0% of tax revenue. (Here is a look at the counties where families need to budget the most for taxes in every state.)
Exactly how much Americans pay each year in property taxes depends both on their local property tax rate and the value of their property. For example, if a single family home is valued at $200,000 in a given year and the local property tax rate is 1%, the property tax bill would come to $2,000.
Across the country, home values and property tax rates vary considerably, and in some parts of the country, Americans pay thousands of dollars more per year on average than in others. Using data from the Tax Foundation, an independent non-profit tax policy research organization, 24/7 Wall St. identified the states where people pay the most in property taxes. States are ranked by the effective property tax rate, or the average amount paid in property taxes as a share of property value in 2021.
Click here to see the states with the highest property taxes.
Click here for a detailed methodology.
Nationwide, the average effective property tax rate stands at 1.1%. But depending on the state, it could be as low as 0.32% or as high as 2.23%.
Lower rates do not necessarily mean a smaller tax bill, however. Hawaii, for example, has the lowest average property tax rate of any state at 0.32%. But, because Hawaii also has nation-leading home values, state and local property tax collections in Hawaii total about $1,556 per person, more than in 22 other states. In several states with the highest effective property tax rate, per capita property tax collections total well over $2,500 each year. (Here is a look at the most tax friendly states for the rich.)
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50. Hawaii
> Effective property tax rate: 0.32%
> Property tax collections per capita: $1,556 (23rd lowest)
> Median home value: $722,500 (the highest)
> Median household income: $84,857 (6th highest)
> Property tax as a share of state and local tax revenue: 20.8% (7th lowest)
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49. Alabama
> Effective property tax rate: 0.40%
> Property tax collections per capita: $632 (2nd lowest)
> Median home value: $172,800 (5th lowest)
> Median household income: $53,913 (5th lowest)
> Property tax as a share of state and local tax revenue: 16.8% (the lowest)
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48. Colorado
> Effective property tax rate: 0.55%
> Property tax collections per capita: $1,956 (14th highest)
> Median home value: $466,200 (5th highest)
> Median household income: $82,254 (9th highest)
> Property tax as a share of state and local tax revenue: 34.5% (17th highest)
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47. Wyoming
> Effective property tax rate: 0.56%
> Property tax collections per capita: $2,163 (12th highest)
> Median home value: $266,400 (24th highest)
> Median household income: $65,204 (20th lowest)
> Property tax as a share of state and local tax revenue: 40.4% (8th highest)
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46. Louisiana
> Effective property tax rate: 0.56%
> Property tax collections per capita: $914 (7th lowest)
> Median home value: $192,800 (11th lowest)
> Median household income: $52,087 (3rd lowest)
> Property tax as a share of state and local tax revenue: 20.7% (6th lowest)
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45. South Carolina
> Effective property tax rate: 0.57%
> Property tax collections per capita: $1,314 (18th lowest)
> Median home value: $213,500 (15th lowest)
> Median household income: $59,318 (9th lowest)
> Property tax as a share of state and local tax revenue: 32.4% (24th highest)
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44. West Virginia
> Effective property tax rate: 0.57%
> Property tax collections per capita: $1,002 (8th lowest)
> Median home value: $143,200 (the lowest)
> Median household income: $51,248 (2nd lowest)
> Property tax as a share of state and local tax revenue: 23.4% (11th lowest)
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43. Utah
> Effective property tax rate: 0.57%
> Property tax collections per capita: $1,209 (17th lowest)
> Median home value: $421,700 (7th highest)
> Median household income: $79,449 (11th highest)
> Property tax as a share of state and local tax revenue: 27.1% (16th lowest)
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42. Nevada
> Effective property tax rate: 0.59%
> Property tax collections per capita: $1,153 (14th lowest)
> Median home value: $373,000 (9th highest)
> Median household income: $66,274 (23rd lowest)
> Property tax as a share of state and local tax revenue: 24.0% (12th lowest)
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41. Delaware
> Effective property tax rate: 0.61%
> Property tax collections per capita: $1,049 (9th lowest)
> Median home value: $300,500 (20th highest)
> Median household income: $71,091 (19th highest)
> Property tax as a share of state and local tax revenue: 17.9% (2nd lowest)
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40. Arizona
> Effective property tax rate: 0.63%
> Property tax collections per capita: $1,206 (16th lowest)
> Median home value: $336,300 (15th highest)
> Median household income: $69,056 (20th highest)
> Property tax as a share of state and local tax revenue: 29.2% (22nd lowest)
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39. Arkansas
> Effective property tax rate: 0.64%
> Property tax collections per capita: $798 (3rd lowest)
> Median home value: $162,300 (3rd lowest)
> Median household income: $52,528 (4th lowest)
> Property tax as a share of state and local tax revenue: 18.4% (4th lowest)
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38. Idaho
> Effective property tax rate: 0.67%
> Property tax collections per capita: $1,131 (12th lowest)
> Median home value: $369,300 (11th highest)
> Median household income: $66,474 (24th lowest)
> Property tax as a share of state and local tax revenue: 27.8% (18th lowest)
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37. Tennessee
> Effective property tax rate: 0.67%
> Property tax collections per capita: $845 (4th lowest)
> Median home value: $235,200 (22nd lowest)
> Median household income: $59,695 (10th lowest)
> Property tax as a share of state and local tax revenue: 22.7% (10th lowest)
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36. Mississippi
> Effective property tax rate: 0.67%
> Property tax collections per capita: $1,167 (15th lowest)
> Median home value: $145,600 (2nd lowest)
> Median household income: $48,716 (the lowest)
> Property tax as a share of state and local tax revenue: 29.4% (23rd lowest)
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35. New Mexico
> Effective property tax rate: 0.67%
> Property tax collections per capita: $899 (6th lowest)
> Median home value: $214,000 (16th lowest)
> Median household income: $53,992 (6th lowest)
> Property tax as a share of state and local tax revenue: 18.0% (3rd lowest)
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34. Montana
> Effective property tax rate: 0.74%
> Property tax collections per capita: $1,806 (18th highest)
> Median home value: $322,800 (17th highest)
> Median household income: $63,249 (16th lowest)
> Property tax as a share of state and local tax revenue: 40.4% (8th highest)
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33. California
> Effective property tax rate: 0.75%
> Property tax collections per capita: $1,955 (15th highest)
> Median home value: $648,100 (2nd highest)
> Median household income: $84,907 (5th highest)
> Property tax as a share of state and local tax revenue: 27.9% (19th lowest)
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32. North Carolina
> Effective property tax rate: 0.82%
> Property tax collections per capita: $1,082 (10th lowest)
> Median home value: $236,900 (23rd lowest)
> Median household income: $61,972 (12th lowest)
> Property tax as a share of state and local tax revenue: 25.7% (15th lowest)
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31. Kentucky
> Effective property tax rate: 0.83%
> Property tax collections per capita: $33 (the lowest)
> Median home value: $173,300 (6th lowest)
> Median household income: $55,573 (7th lowest)
> Property tax as a share of state and local tax revenue: 21.0% (8th lowest)
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30. Indiana
> Effective property tax rate: 0.84%
> Property tax collections per capita: $1,146 (13th lowest)
> Median home value: $182,400 (9th lowest)
> Median household income: $62,743 (14th lowest)
> Property tax as a share of state and local tax revenue: 24.3% (13th lowest)
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29. Washington
> Effective property tax rate: 0.87%
> Property tax collections per capita: $1,727 (22nd highest)
> Median home value: $485,700 (3rd highest)
> Median household income: $84,247 (7th highest)
> Property tax as a share of state and local tax revenue: 28.1% (20th lowest)
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28. Virginia
> Effective property tax rate: 0.87%
> Property tax collections per capita: $1,830 (16th highest)
> Median home value: $330,600 (16th highest)
> Median household income: $80,963 (10th highest)
> Property tax as a share of state and local tax revenue: 32.7% (22nd highest)
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27. Oklahoma
> Effective property tax rate: 0.89%
> Property tax collections per capita: $883 (5th lowest)
> Median home value: $168,500 (4th lowest)
> Median household income: $55,826 (8th lowest)
> Property tax as a share of state and local tax revenue: 21.2% (9th lowest)
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26. Florida
> Effective property tax rate: 0.91%
> Property tax collections per capita: $1,541 (22nd lowest)
> Median home value: $290,700 (21st highest)
> Median household income: $63,062 (15th lowest)
> Property tax as a share of state and local tax revenue: 38.1% (11th highest)
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25. Georgia
> Effective property tax rate: 0.92%
> Property tax collections per capita: $1,336 (19th lowest)
> Median home value: $249,700 (25th lowest)
> Median household income: $66,559 (25th highest)
> Property tax as a share of state and local tax revenue: 32.8% (21st highest)
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24. Oregon
> Effective property tax rate: 0.93%
> Property tax collections per capita: $1,730 (21st highest)
> Median home value: $422,700 (6th highest)
> Median household income: $71,562 (18th highest)
> Property tax as a share of state and local tax revenue: 33.3% (18th highest)
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23. North Dakota
> Effective property tax rate: 0.98%
> Property tax collections per capita: $1,538 (21st lowest)
> Median home value: $224,400 (19th lowest)
> Median household income: $66,519 (25th lowest)
> Property tax as a share of state and local tax revenue: 20.4% (5th lowest)
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22. Missouri
> Effective property tax rate: 1.01%
> Property tax collections per capita: $1,114 (11th lowest)
> Median home value: $198,300 (12th lowest)
> Median household income: $61,847 (11th lowest)
> Property tax as a share of state and local tax revenue: 28.1% (20th lowest)
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21. Alaska
> Effective property tax rate: 1.04%
> Property tax collections per capita: $2,276 (9th highest)
> Median home value: $304,900 (19th highest)
> Median household income: $77,845 (12th highest)
> Property tax as a share of state and local tax revenue: 50.3% (2nd highest)
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20. Maryland
> Effective property tax rate: 1.05%
> Property tax collections per capita: $1,744 (20th highest)
> Median home value: $370,800 (10th highest)
> Median household income: $90,203 (the highest)
> Property tax as a share of state and local tax revenue: 25.6% (14th lowest)
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19. Minnesota
> Effective property tax rate: 1.11%
> Property tax collections per capita: $1,776 (19th highest)
> Median home value: $285,400 (22nd highest)
> Median household income: $77,720 (13th highest)
> Property tax as a share of state and local tax revenue: 27.3% (17th lowest)
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18. Massachusetts
> Effective property tax rate: 1.14%
> Property tax collections per capita: $2,638 (7th highest)
> Median home value: $480,600 (4th highest)
> Median household income: $89,645 (2nd highest)
> Property tax as a share of state and local tax revenue: 36.3% (14th highest)
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17. South Dakota
> Effective property tax rate: 1.17%
> Property tax collections per capita: $1,606 (25th lowest)
> Median home value: $219,900 (17th lowest)
> Median household income: $66,143 (22nd lowest)
> Property tax as a share of state and local tax revenue: 36.0% (15th highest)
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16. Maine
> Effective property tax rate: 1.24%
> Property tax collections per capita: $2,862 (5th highest)
> Median home value: $252,100 (25th highest)
> Median household income: $64,767 (19th lowest)
> Property tax as a share of state and local tax revenue: 44.6% (5th highest)
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15. Kansas
> Effective property tax rate: 1.34%
> Property tax collections per capita: $1,712 (24th highest)
> Median home value: $183,800 (10th lowest)
> Median household income: $64,124 (18th lowest)
> Property tax as a share of state and local tax revenue: 32.9% (20th highest)
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14. Michigan
> Effective property tax rate: 1.38%
> Property tax collections per capita: $1,594 (24th lowest)
> Median home value: $199,100 (13th lowest)
> Median household income: $63,498 (17th lowest)
> Property tax as a share of state and local tax revenue: 37.4% (12th highest)
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13. Rhode Island
> Effective property tax rate: 1.40%
> Property tax collections per capita: $2,449 (8th highest)
> Median home value: $348,100 (13th highest)
> Median household income: $74,008 (15th highest)
> Property tax as a share of state and local tax revenue: 42.7% (7th highest)
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12. New York
> Effective property tax rate: 1.40%
> Property tax collections per capita: $3,118 (4th highest)
> Median home value: $368,800 (12th highest)
> Median household income: $74,314 (14th highest)
> Property tax as a share of state and local tax revenue: 31.4% (25th highest)
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11. Pennsylvania
> Effective property tax rate: 1.49%
> Property tax collections per capita: $1,644 (25th highest)
> Median home value: $222,300 (18th lowest)
> Median household income: $68,957 (21st highest)
> Property tax as a share of state and local tax revenue: 29.6% (24th lowest)
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10. Iowa
> Effective property tax rate: 1.52%
> Property tax collections per capita: $1,806 (17th highest)
> Median home value: $174,400 (7th lowest)
> Median household income: $65,600 (21st lowest)
> Property tax as a share of state and local tax revenue: 33.2% (19th highest)
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9. Ohio
> Effective property tax rate: 1.59%
> Property tax collections per capita: $1,458 (20th lowest)
> Median home value: $180,200 (8th lowest)
> Median household income: $62,262 (13th lowest)
> Property tax as a share of state and local tax revenue: 30.0% (25th lowest)
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8. Wisconsin
> Effective property tax rate: 1.61%
> Property tax collections per capita: $1,717 (23rd highest)
> Median home value: $230,700 (20th lowest)
> Median household income: $67,125 (22nd highest)
> Property tax as a share of state and local tax revenue: 32.6% (23rd highest)
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7. Nebraska
> Effective property tax rate: 1.63%
> Property tax collections per capita: $2,088 (13th highest)
> Median home value: $204,900 (14th lowest)
> Median household income: $66,817 (24th highest)
> Property tax as a share of state and local tax revenue: 36.9% (13th highest)
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6. Texas
> Effective property tax rate: 1.68%
> Property tax collections per capita: $2,216 (11th highest)
> Median home value: $237,400 (24th lowest)
> Median household income: $66,963 (23rd highest)
> Property tax as a share of state and local tax revenue: 46.7% (3rd highest)
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5. Connecticut
> Effective property tax rate: 1.79%
> Property tax collections per capita: $3,295 (2nd highest)
> Median home value: $311,500 (18th highest)
> Median household income: $83,771 (8th highest)
> Property tax as a share of state and local tax revenue: 39.0% (10th highest)
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4. Vermont
> Effective property tax rate: 1.83%
> Property tax collections per capita: $2,860 (6th highest)
> Median home value: $271,500 (23rd highest)
> Median household income: $72,431 (16th highest)
> Property tax as a share of state and local tax revenue: 44.3% (6th highest)
Source: Sean Pavone / iStock via Getty Images
3. New Hampshire
> Effective property tax rate: 1.93%
> Property tax collections per capita: $3,285 (3rd highest)
> Median home value: $345,200 (14th highest)
> Median household income: $88,465 (4th highest)
> Property tax as a share of state and local tax revenue: 64.0% (the highest)
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2. Illinois
> Effective property tax rate: 2.08%
> Property tax collections per capita: $2,268 (10th highest)
> Median home value: $231,500 (21st lowest)
> Median household income: $72,205 (17th highest)
> Property tax as a share of state and local tax revenue: 35.4% (16th highest)
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1. New Jersey
> Effective property tax rate: 2.23%
> Property tax collections per capita: $3,431 (the highest)
> Median home value: $389,800 (8th highest)
> Median household income: $89,296 (3rd highest)
> Property tax as a share of state and local tax revenue: 45.3% (4th highest)
Methodology
To identify the states with the highest taxes, 24/7 Wall St. reviewed data from the report Facts & Figures 2023: How Does Your State Compare from the Tax Foundation, an independent, non-profit, tax policy research organization. States are ranked by average property taxes paid as a share of home value, or the effective property tax rate, in the 2021 calendar year
Supplementary data on state and local property tax collections per capita is for the fiscal 2020 and is also from the Tax Foundation. The largest share of state and local tax revenue is for the 2020 fiscal year and is from the Tax Foundation’s report Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections.
Data on median household income and median home value are from the U.S. Census Bureau’s 2021 American Community Survey. Census data on median home values was not used to calculate the effective property tax rate.
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