A Full Comparison of Property Taxes by State

Property tax is a tax levied on real estate, including land and buildings, by counties, municipalities, and special purpose districts like school or fire districts. The primary purpose of this tax is to generate a reliable stream of revenue to fund community services such as public schools, police and fire departments, and road maintenance.

This tax is an “ad valorem” tax, a Latin phrase meaning “according to value,” which signifies that the amount a property owner pays is directly proportional to the value of their property. This system distributes the cost of local government services among property owners based on their property wealth. The revenue generated is geographically defined, meaning taxes paid in a community are used to fund services within that same community.

The Core Calculation Components

The calculation of a property tax bill begins with an assessment by a local government official, known as a property appraiser or tax assessor. This official determines the property’s “assessed value,” which is distinct from its “market value”—the price it would likely sell for. The assessed value is often a percentage of the market value, determined by a local assessment ratio.

For instance, if a home has a market value of $300,000 and the local assessment ratio is 90%, its assessed value would be $270,000. Local governments establish a tax rate based on their budgetary needs, frequently expressed as a “millage rate.” One mill is equivalent to one dollar of tax for every $1,000 of assessed value.

To illustrate, if the total millage rate is 15 mills, this translates to a 1.5% tax rate. The formula to determine the final tax bill is the Assessed Value multiplied by the Tax Rate, which in this example would be $4,050 annually ($270,000 x 1.5%).

State Rankings and Comparison

A primary tool for comparing property tax burdens is the “effective property tax rate.” This metric provides a standardized measure by showing the median annual property tax paid as a percentage of the median home value in each state. It allows for a more direct comparison than looking at dollar amounts, which can be skewed by vast differences in property values.

Below is a comprehensive table listing all 50 states and the District of Columbia, ranked from the highest effective property tax rate to the lowest.

| Rank | State | Effective Property Tax Rate |
|—|—|—|
| 1 | New Jersey | 2.33% |
| 2 | Illinois | 2.08% |
| 3 | New Hampshire | 1.93% |
| 4 | Connecticut | 1.79% |
| 5 | Vermont | 1.76% |
| 6 | Rhode Island | 1.63% |
| 7 | Massachusetts | 1.63% |
| 8 | Iowa | 1.56% |
| 9 | Ohio | 1.56% |
| 10 | Wisconsin | 1.53% |
| 11 | Nebraska | 1.36% |
| 12 | Texas | 1.35% |
| 13 | Kansas | 1.31% |
| 14 | Michigan | 1.31% |
| 15 | New York | 1.28% |
| 16 | South Dakota | 1.23% |
| 17 | North Dakota | 1.14% |
| 18 | Maine | 1.10% |
| 19 | Pennsylvania | 1.09% |
| 20 | Minnesota | 1.09% |
| 21 | Alaska | 1.08% |
| 22 | Oklahoma | 1.05% |
| 23 | Oregon | 1.04% |
| 24 | Missouri | 0.97% |
| 25 | Washington | 0.94% |
| 26 | Georgia | 0.93% |
| 27 | Maryland | 0.92% |
| 28 | Indiana | 0.87% |
| 29 | Montana | 0.85% |
| 30 | North Carolina | 0.84% |
| 31 | Florida | 0.83% |
| 32 | Virginia | 0.83% |
| 33 | California | 0.76% |
| 34 | Kentucky | 0.76% |
| 35 | Arizona | 0.74% |
| 36 | Idaho | 0.73% |
| 37 | Tennessee | 0.72% |
| 38 | Mississippi | 0.69% |
| 39 | New Mexico | 0.66% |
| 40 | Utah | 0.65% |
| 41 | Arkansas | 0.63% |
| 42 | Wyoming | 0.61% |
| 43 | West Virginia | 0.58% |
| 44 | Delaware | 0.57% |
| 45 | District of Columbia | 0.57% |
| 46 | South Carolina | 0.56% |
| 47 | Louisiana | 0.55% |
| 48 | Nevada | 0.50% |
| 49 | Colorado | 0.49% |
| 50 | Alabama | 0.39% |
| 51 | Hawaii | 0.27% |

Data based on most recent available figures for 2024/2025.

Analysis of the data reveals distinct regional patterns. The highest property tax rates are concentrated in the Northeast, with New Jersey (2.33%), Illinois (2.08%), and New Hampshire (1.93%) comprising the top three. Conversely, the states with the lowest property tax burdens are predominantly in the South and West. Hawaii boasts the lowest effective rate in the nation at just 0.27%, followed by Alabama (0.39%) and Colorado (0.49%).

Factors Influencing State Differences

The significant disparities in property tax rates across states are driven by a combination of fiscal policies and economic realities. One influential factor is a state’s overall tax structure and its reliance on property taxes. States that do not levy a broad-based personal income tax, for example, often depend more heavily on property and sales taxes to generate revenue.

Local government spending levels are another primary driver. The cost and quality of public services, particularly K-12 education, are the largest expenditure for most local governments. Communities that invest heavily in their schools and infrastructure often require higher tax levies, meaning a higher tax bill can correlate with a higher level of service.

The value of property within a jurisdiction also plays a role. In areas with lower median home values, local governments may need to set a higher tax rate to generate the same amount of revenue as a jurisdiction with high property values.

Common Property Tax Relief Programs

To lessen the property tax burden, many states and local governments offer tax relief programs. These programs provide financial assistance to specific groups of homeowners by reducing their property’s assessed value or directly lowering their tax bill.

One of the most widespread forms of relief is the homestead exemption. This program reduces the assessed value of a primary residence, meaning the owner pays taxes on a smaller amount. For example, a $50,000 homestead exemption on a home assessed at $200,000 would mean the owner is only taxed on $150,000 of the home’s value.

Many jurisdictions also provide targeted tax relief for senior citizens and individuals with disabilities. These programs can include property tax freezes, which cap the taxable value of a home, or direct tax credits. Special exemptions are also commonly available for qualified veterans, particularly those with service-connected disabilities.

Finding Your State and Local Tax Information

To find the most accurate information about your property taxes, the best resource is your local government. The office responsible for tax administration is often called the “county property appraiser,” “tax assessor,” or “tax collector.” An online search for your county’s name along with one of these terms will lead you to the official government website.

These official websites are the primary source for property tax data. You can find your property’s current assessed value, the specific tax rates for your area, and important deadlines for payments and appeals. This is also where you will find detailed information about available tax relief programs, including eligibility rules and application forms for homestead, senior, or veteran benefits.