📊 US Property Tax by State 2025

How We Rank the 50 States

The ranking on this page is built from each state's average effective property tax rate — the amount a typical homeowner pays in property tax each year expressed as a percentage of the home's market value. We calculate it by taking the total property tax collected in a state, dividing by the total assessed value of taxable property, and expressing the result as a percentage. This "effective" rate smooths out the differences between states that assess property at full market value and states that assess at a fraction of value, so it is the fairest single number for comparing one state to another.

The "Avg. Annual Tax" column shows the typical yearly bill for a home at that state's median value. Because home values differ so much across the country, a state with a modest rate can still produce a large dollar bill if homes are expensive, while a high-rate state with cheap homes may produce a smaller check. Both columns matter, which is why we show them side by side.

How Property Tax Rates Are Calculated

Every property tax bill comes from the same basic formula: assessed value × local tax rate − exemptions = tax due. The "assessed value" is what the local assessor says your property is worth for tax purposes, which is not always the same as the sale price. Some states assess at 100% of market value, while others use a statutory ratio — Michigan uses 50%, Ohio 35%, Missouri 19%, and Tennessee just 25%. That ratio is why a home's taxable value can look far smaller than its purchase price.

The "local tax rate" is not set in one place. It is the sum of separate levies from the county, the city or town, the school district, and any special districts (fire, library, water, parks). Each of those bodies sets its own rate, usually expressed in millage — dollars per $1,000 of assessed value. Add the millages together, apply them to your assessed value after exemptions, and you get the bill. Because so many separate governments touch the rate, two homes a few blocks apart can owe very different amounts.

Why Rates Vary So Much by State

Three big factors explain the spread from Hawaii's 0.28% to New Jersey's 2.49%. First, the assessment basis differs: states that assess at a low percentage of market value produce smaller taxable bases, which can lower the effective rate even when millage looks high. Second, the balance of taxes matters — states with no income tax (Texas, Florida, Tennessee, New Hampshire, Washington, Wyoming, South Dakota, Alaska) lean harder on the property tax to fund schools and services, which pushes rates up. Third, voter-approved levies and local control over school funding let individual districts raise rates well above their state's average.

Urban suburbs with prized school districts almost always sit above their state average, while rural counties often sit below it. That is why the rank table tells you the state average, but your real bill depends on the specific county and school district you live in.

The Highest-Tax States

New Jersey (2.49%) leads the nation because local school districts raise most of their money from property tax, with little offset from the state. New Hampshire (2.05%) has no broad sales or income tax and funds education locally. Connecticut (2.00%), New York (1.60%–1.79% by area), and Illinois (1.90%–1.97%) round out the top, each driven by heavy school-district reliance and, in Illinois, a flat 1/3 assessment level that leaves the full millage on a smaller base. In these states, claiming every exemption and appealing an over-assessment produces the largest dollar savings.

The Lowest-Tax States

Hawaii (0.28%) has the lowest effective rate in the country even though home values are high, because the state caps the rate and leans on other revenue. Alabama (0.41%), Louisiana (0.53%), Wyoming (0.68%), and Delaware (0.56%) also sit near the bottom, helped by low assessment ratios, oil and gas revenue (Wyoming), or a broad-based income tax that reduces the property-tax load (Delaware). Low-rate states still matter for homeowners: a small rate on a very expensive home can still be a large bill, and exemptions still reduce it.

States With No Income Tax vs Property Tax

A common pattern: states that skip a broad state income tax often charge more property tax. Texas (1.66%), Florida (0.97%), Tennessee (0.65%), Washington (0.98%), Wyoming (0.68%), South Dakota (1.26%), Nevada (0.53%), and New Hampshire (2.05%) all rely more on property and sales taxes for local services. If you are comparing a move between, say, Texas and California, do not look at the income-tax line alone — the property-tax difference can be larger than the income-tax saving for a high-value home. Use our state-to-state comparison calculator to model the real trade-off.

How to Use This Comparison

Start by finding your state in the ranking table above. Then open that state's full guide — every state name in the table links to a dedicated page with county-level rates, homestead and senior/veteran exemptions, appeal deadlines, and a worked example. After you understand your state's rules, plug your home value and county rate into our free calculator to get a personalized estimate you can compare against your actual bill.

Can You Lower Your Rate?

You cannot change your state's rate, but you can often lower your bill four ways: (1) file an appeal if your assessed value is above what similar homes sell for; (2) claim every homestead, senior, and veteran exemption you qualify for; (3) watch reassessment triggers such as a remodel or a change of ownership; and (4) use the calculators on this site to model the savings before you act. The dedicated state guides list the exact appeal window and exemption amounts for each state.

Frequently Asked Questions — 50-State Comparison

What is an effective property tax rate?

It is the total property tax paid in a year divided by the home's market value, shown as a percentage. It is the best single number for comparing states because it already accounts for different assessment methods.

Why is my bill different from the state average?

Your county, city, and school district set their own rates on top of any state floor, and your exemptions reduce your taxable value. Two neighbors can owe different amounts based on district boundaries and exemptions claimed.

Which state has the highest property tax?

New Jersey, at about 2.49% average effective rate, followed by New Hampshire and Connecticut. The highest-dollar bills tend to appear in high-value suburban neighborhoods of those states.

Which state has the lowest property tax?

Hawaii, at about 0.28%, followed by Alabama and Louisiana. Low rates do not always mean low dollar bills where home values are high.

Do no-income-tax states have higher property tax?

Often yes. States such as Texas, Florida, and New Hampshire rely more on property tax to fund local services, which is why their rates run above the national average.

How do I find my county's exact rate?

Use our county map or the county lookup tool, which list representative county rates for every state and link to a per-county estimator.

Are property taxes deductible on federal returns?

Yes, they are deductible on Schedule A, but the $10,000 SALT cap limits the total state and local tax deduction for higher-income filers. The deduction lowers federal tax; it does not lower your property bill.

How can I lower my property tax bill?

Appeal an over-assessment with comparable sales, claim every homestead/senior/veteran exemption, and understand your county's revaluation schedule. Our calculators show the dollar impact of each step.