Property Tax Rate by State
Property taxes aren’t “one national rate.” They’re set locally — by counties, cities, school districts, and special districts. But you can still compare the typical burden across states using an effective property tax rate: the share of home value paid in annual property taxes.
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Quick answers
Headline: Effective property tax rates vary widely by state — often by 5× or more. High-rate states are commonly in the Northeast and Midwest, while lower-rate states are often in parts of the South and West.
- Highest effective-rate states (typical ranking): Illinois, New Jersey, Connecticut, Nebraska, Vermont, New Hampshire.
- Lowest effective-rate states (typical ranking): Hawaii, Alabama, Arizona, South Carolina, Utah.
- Important nuance: A “low rate” does not always mean a low bill. If home values are high, the tax bill can still be big.
This page focuses on effective rates (tax paid ÷ home value). Your actual bill is determined by your local jurisdiction, your assessed value, and your exemptions.
What “property tax rate” means (and why it’s confusing)
When people search “property tax rate by state,” they’re usually trying to answer one of three questions: (1) How expensive is it to own a home there? (2) How much will my annual tax bill be? or (3) Which states have high or low property taxes?
The confusion comes from how property taxes work in the U.S. In most places, your tax bill is determined locally — not by a single state-level rate. A county might set one rate, your city another, your school district another, plus special districts (fire, water, transit, etc.). That’s why two homes in the same state can have very different tax bills.
Millage rate vs effective rate
You’ll see “rates” described in different ways:
- Millage: tax per $1,000 of assessed value (e.g., 20 mills = $20 per $1,000).
- Nominal rate: the local tax rate applied to assessed value (often the same as millage, just expressed differently).
- Effective rate: taxes paid ÷ home value (what you can compare across places).
Rule of thumb: For cross-state comparisons, use the effective property tax rate. For your actual bill, use your local tax rate + assessment rules + exemptions.
Property tax rates by state (effective rate)
The table below lists an effective property tax rate for owner-occupied homes by state. Think of this as a “typical share of home value paid in property taxes” — useful for comparisons and early-stage planning. Your county/city can be materially higher or lower.
Example: If a state’s effective rate is 1.25%, then a $400,000 home is roughly $5,000/year (before local differences and exemptions).
| State | Effective property tax rate |
|---|---|
| Illinois | 1.825% |
| New Jersey | 1.773% |
| Connecticut | 1.485% |
| Nebraska | 1.435% |
| Vermont | 1.417% |
| New Hampshire | 1.413% |
| Texas | 1.356% |
| Ohio | 1.306% |
| New York | 1.263% |
| Wisconsin | 1.254% |
| Iowa | 1.235% |
| Kansas | 1.194% |
| Pennsylvania | 1.190% |
| Michigan | 1.148% |
| Rhode Island | 1.052% |
| Minnesota | 0.987% |
| South Dakota | 0.985% |
| Massachusetts | 0.975% |
| North Dakota | 0.936% |
| Maine | 0.935% |
| Alaska | 0.907% |
| Maryland | 0.900% |
| Missouri | 0.878% |
| Oregon | 0.782% |
| Oklahoma | 0.772% |
| Georgia | 0.770% |
| Indiana | 0.769% |
| Virginia | 0.767% |
| Washington | 0.749% |
| Florida | 0.738% |
| Kentucky | 0.725% |
| California | 0.699% |
| North Carolina | 0.623% |
| New Mexico | 0.609% |
| Montana | 0.604% |
| Mississippi | 0.575% |
| Louisiana | 0.553% |
| Wyoming | 0.549% |
| Arkansas | 0.534% |
| Delaware | 0.503% |
| Colorado | 0.500% |
| Nevada | 0.491% |
| Tennessee | 0.488% |
| Idaho | 0.477% |
| West Virginia | 0.476% |
| Utah | 0.473% |
| South Carolina | 0.471% |
| Arizona | 0.442% |
| Alabama | 0.359% |
| Hawaii | 0.318% |
If you’re deciding where to buy, treat this table as a starting point. The next step is county/city research, because local rates and assessment practices can dominate the final bill.
Highest vs lowest property tax states
High effective-rate states
States near the top of the list tend to have a strong reliance on property taxes to fund local services — especially schools. In many high-rate states, the tax base is spread across a mix of older housing stock, mature local governments, and multiple overlapping districts. The result is a higher effective burden on owner-occupied homes.
Planning tip: If you’re moving from a low-rate state to a high-rate state, your monthly “all-in” cost can jump even if the home price is similar — because property taxes behave like an ongoing, inflation-sensitive expense.
Low effective-rate states
Low-rate states can be attractive on paper, but don’t stop at the percentage. Two hidden “gotchas”: (1) home value levels (high values can still create high bills), and (2) assessment jumps for recent buyers if the system lags and then catches up.
Also remember: states balance revenue differently. A low property tax burden can coexist with higher sales taxes, fees, or other costs — and the overall affordability still depends on wages, insurance, utilities, and housing prices.
Why property tax rates vary so much by state
Property taxes are local, but states shape the system through assessment rules, caps, exemptions, and how schools are funded. Here are the biggest drivers of cross-state differences:
1) How local services are funded
In many parts of the U.S., property taxes fund schools, public safety, libraries, and local infrastructure. Where local government relies heavily on property taxes (and less on income or sales tax), effective rates tend to be higher. This doesn’t automatically mean “worse value” — it just means the community chooses property tax as a primary revenue source.
2) Home values and assessment lag
Property tax systems often adjust with a delay. If home prices rise quickly, assessed values may lag for a few years. That can temporarily push effective rates down (because value rose faster than tax bills). Later, reassessments can catch up — creating noticeable bill increases.
3) Exemptions and relief programs
Homestead exemptions, senior exemptions, disability exemptions, and assessment freezes can materially reduce taxes for certain homeowners. A state can have a “high typical rate” but a much lower bill for homeowners who qualify for relief programs.
4) Assessment ratios and property classification
Some states tax different property types differently (owner-occupied, second homes, commercial, agricultural). If your home is not your primary residence, you may not get the most favorable rate or exemptions — which can make your effective rate higher than what statewide “owner-occupied” comparisons suggest.
How to estimate your property tax bill
If you just need a fast estimate, use the effective rate from the table above:
Quick estimate: Annual property tax ≈ Home value × Effective rate
But for a more accurate estimate, you want the local formula:
More accurate estimate: (Assessed value × Local tax rate) − Exemptions/credits
Step-by-step (practical version)
- Start with your likely assessed value. Some areas assess near market value; others use a percentage of market value or a capped growth rule.
- Find your local tax rate. This may be presented as a millage rate or a percentage. Remember: multiple districts can stack.
- Apply exemptions. Homestead exemptions can reduce taxable value; credits can reduce the bill.
- Stress-test reassessments. If you’re buying a recently sold home, your assessment may reset toward purchase price — causing a bill jump after closing.
Example: two states, same home value
Imagine a $400,000 home:
- If your effective rate is 1.25%, a rough annual bill is ~$5,000/year.
- If your effective rate is 0.50%, a rough annual bill is ~$2,000/year.
That difference is $250/month — often enough to change affordability, debt-to-income ratios, and the rent vs buy decision. If you’re modeling housing costs, property tax is not a “small line item.”
Want a fast sanity-check?
Include property taxes in your housing model (not just the mortgage). Then run a “reassessment up” scenario to see how fragile the payment is.
How to lower your property taxes (legit strategies)
You usually can’t “opt out” of property taxes, but you can reduce them by making sure your assessment and exemptions are correct. The biggest savings typically come from fixing the taxable value, not from minor tricks.
1) Confirm your exemptions (especially homestead)
Many homeowners overpay simply because they didn’t apply for the homestead exemption after moving in, or they missed a deadline. If your home is your primary residence, check your county assessor’s website for eligibility and filing steps.
2) Review your assessment for errors
Assessors handle huge volumes. Errors happen: wrong square footage, missing condition issues, incorrect comps, or outdated property characteristics. If the assessed value seems high relative to comparable nearby homes, you may have a case to appeal.
3) Understand reassessment timing after a purchase
In some jurisdictions, a purchase triggers reassessment (or accelerates it). That can cause the bill you saw in listings to be significantly lower than what you’ll pay after the first reset. If you’re buying, always ask: “Will taxes reset to purchase price?”
4) Appeal when it’s worth it
Appealing takes effort, but it can pay off in high-tax areas. A good appeal is evidence-based: comparable sales, corrected property facts, and a clear argument for a lower market/assessed value. If the potential savings are small, it may not be worth the time.
Reality check: Even if you win an appeal, local budgets still need funding. Some places respond by adjusting rates over time. Treat appeals as “fixing your share,” not eliminating the system.
Frequently Asked Questions
Is property tax based on purchase price or assessed value?
Property tax is based on taxable assessed value, which may or may not match purchase price. Some areas reassess after a sale (which can move assessed value toward the purchase price), while others cap assessment growth or update on a cycle.
Why do two homes in the same state have different property taxes?
Because taxes are set locally. Two nearby homes can sit in different school districts or special districts, or have different assessment treatments (homestead vs non-homestead). Exemptions also create differences between households.
Can a low property tax rate still mean a high tax bill?
Yes. The bill depends on rate × value. A low rate applied to a very high home value can still produce a large annual bill (and vice versa).
Do property tax rates change every year?
They can. Local budgets, changing assessed values, and voter-approved levies can all change the rate. Even if the rate is steady, your bill may change when your assessed value changes.
Bottom line
“Property tax rate by state” is a useful first filter — but it’s not the final answer. Use effective rates to compare states, then validate the county/city tax rate, your likely assessed value, and your exemptions. If you’re deciding between renting and buying (or comparing two metros), property taxes can be one of the biggest swing variables in the long-run cost.
Next step: include property taxes in a full cost model with Homeownership Cost (and stress-test reassessment).
Methodology and sources
Educational only. Rates vary within each state by county/city and depend on assessment rules and exemptions.
Where the table comes from
The state-by-state effective rates on this page reflect an effective tax rate for owner-occupied homes computed from U.S. Census Bureau American Community Survey data (property taxes paid ÷ housing value), as summarized in the analysis linked below.
Sources
- Construction Coverage (analysis + full state table): Average Property Taxes in the U.S. by State, County, & City
- U.S. Census Bureau (ACS overview): American Community Survey (ACS)
- NAHB Eye On Housing (context on taxes paid + effective rates concept): Property Taxes by State – 2024