Property taxes by state: A comparative look at the highest to lowest states

By

Victoria Araj

Jan 30, 2024

•

4-minute read

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Searching for a new home comes with several considerations. Often, we value the community our home is in as a top priority. But financially supporting the local area, like schools and infrastructure, comes with property taxes. In all 50 U.S. states, laws require the majority of property owners to pay real estate taxes, and property taxes vary by state.

If you are considering a real estate search, you’ll want to think about the location’s property taxes since they add to your homeownership costs. With that in mind, here is a basic rundown on the financial charge and a list of property taxes by state to help you start.

What are property taxes?

Property taxes, or real estate taxes, are paid by a real estate owner to county or local tax authorities. The amount is based on the assessed value of your home and vary depending on your state’s property tax rate. Most U.S. homeowners have to pay these fees, usually on a monthly basis, in combination with their mortgage payments. If you pay off your loan, you receive a bill for the tax from local government occasionally during the year.

The money used for the property tax goes toward the community. It supports infrastructure improvements, public services and local public schooling.

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What are property taxes based on?

While your home’s assessed value for property taxes may match its actual value, that won’t always be the case. That gap can affect your tax amount. What you’ll pay in property taxes ranges depending on the state and county you live in as well as the overall value of your home. That includes both the land itself and the structures on it. So, vacant land will likely have lower real estate taxes due to a lower assessed value.

Assessment is based on a unit called a mill, equal to one-thousandth of a dollar. Assessors find annual property tax liability by multiplying three values:

  • the state tax rate,
  • the assessment ratio (the portion of the property value subject to tax),
  • and the property value.

Some of these values fluctuate according to the market and state.

States do their property assessments at different frequencies, some annually and others every couple of years.

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States ranked by property tax

Here is a list of states in order of lowest ranking property tax to highest:

Rank State Effective tax rate Median home value or list price Average annual property tax

1

Hawaii

0.32%

$297,400

$937.29

2

Alabama

0.40%

$200,900

$803.59

3

Colorado

0.55%

$531,100

$2,901.65

4

Wyoming

0.56%

$252,800

$1,404.42

5

Louisiana

0.56%

$196,300

$1,095.89

6

South Carolina

0.57%

$383,900

$2,175.93

7

West Virginia

0.57%

$569,500

$3,233.20

8

Utah

0.57%

$275,400

$1,570.69

9

Nevada

0.59%

$232,400

$1,369.60

10

Delaware

0.61%

$337,200

$2,067.97

11

District of Columbia

0.62%

$292,300

$1,815.55

12

Arizona

0.63%

$402,800

$2,519.82

13

Arkansas

0.64%

$179,800

$1,154.52

14

Idaho

0.67%

$820,100

$5,455.46

15

Tennessee

0.67%

$245,000

$1,635.57

16

Mississippi

0.67%

$314,600

$2,105.01

17

New Mexico

0.67%

$428,900

$2,880.87

18

Montana

0.74%

$221,200

$1,634.00

19

California

0.75%

$715,900

$5,347.48

20

North Carolina

0.82%

$400,400

$3,265.24

21

Kentucky

0.83%

$206,600

$1,710.91

22

Indiana

0.84%

$251,600

$2,121.46

23

Washington State

0.87%

$365,700

$3,193.47

24

Virginia

0.87%

$304,700

$2,664.96

25

Oklahoma

0.89%

$204,100

$1,821.13

26

Florida

0.91%

$711,100

$6,489.40

27

Georgia

0.92%

$354,100

$3,261.51

28

Oregon

0.93%

$191,700

$1,786.74

29

North Dakota

0.98%

$280,600

$2,746.35

30

Missouri

1.01%

$162,500

$1,637.70

31

Alaska

1.04%

$336,900

$3,505.87

32

Maryland

1.05%

$290,600

$3,047.08

33

Minnesota

1.11%

$224,400

$2,484.78

34

Massachusetts

1.14%

$398,100

$4,534.54

35

South Dakota

1.17%

$254,600

$2,974.75

36

Maine

1.24%

$209,200

$2,586.29

37

Kansas

1.34%

$194,600

$2,610.67

38

Michigan

1.38%

$534,700

$7,369.50

39

Rhode Island

1.40%

$245,500

$3,432.79

40

New York

1.40%

$243,100

$3,407.29

41

Pennsylvania

1.49%

$475,600

$7,087.11

42

Iowa

1.52%

$208,700

$3,180.79

43

Ohio

1.59%

$243,100

$3,868.19

44

Wisconsin

1.61%

$155,100

$2,497.18

45

Nebraska

1.63%

$366,400

$5,982.37

46

Texas

1.68%

$284,800

$4,776.81

47

Connecticut

1.79%

$347,200

$6,213.98

48

Vermont

1.83%

$499,500

$9,119.74

49

New Hampshire

1.93%

$434,700

$8,389.53

50

Illinois

2.08%

$432,500

$9,006.07

51

New Jersey

2.23%

$384,700

$8,597.69

Sources: Effective Tax Rate, Tax Foundation

Median Home Value, U.S. Census Bureau 2022 American Community Survey Looking at Owner-Occupied Housing Units

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State property tax exemptions

While most U.S. homeowners must pay property taxes, some properties are exempt. This differs from a tax deduction, which only lowers an individual or group’s tax liability. Property tax exemptions include qualifying individuals, such as senior citizens, STAR (School Tax Relief) participants, those with disabilities and veterans. Certain eligible government, nonprofit, and religious entities may also fall under an exemption.

Vulnerable or low-income homeowners are typically the target of many property exemption programs, whether they lower or eliminate the property taxes. However, even taxpayers who use their home as their primary residence may qualify for the Homestead Exemption. It’s also possible to apply for multiple exemptions if you live in certain areas. Thus, a wide range of people may be able to save thousands on real estate tax.

Eligibility may shift depending on your state’s laws, your local municipality, and your situation. Check with the appropriate local services if you need help navigating the available programs.

The bottom line: Property taxes vary from state to state

You may live in an area that levies significant property taxes or caps exemptions at a low threshold. If you are struggling to afford your current tax liability, consider refinancing your property, as it can help lower the costs tied to owning a home.

Looking to buy? Property taxes can make a big difference when it comes to affordability. Get preapproved now so that you have all the info you need to make an informed decision while house hunting.

Portrait of Victoria Araj.

Victoria Araj

Victoria Araj is a Team Leader for Rocket Mortgage and held roles in mortgage banking, public relations and more in her 19+ years with the company. She holds a bachelor’s degree in journalism with an emphasis in political science from Michigan State University, and a master’s degree in public administration from the University of Michigan.

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