Property taxes are one of the largest ongoing costs of homeownership, averaging over $3,500 per year nationally. Rates vary dramatically—from under 0.3% in Hawaii to over 2.2% in New Jersey—making location a major factor in your total housing cost.
Property Tax Rates by State
All 50 States Ranked (2026 Estimates)
Rank
State
Effective Tax Rate
Tax on $300,000 Home
Tax on $500,000 Home
1
New Jersey
2.23%
$6,690
$11,150
2
Illinois
2.07%
$6,210
$10,350
3
Connecticut
2.00%
$6,000
$10,000
4
New Hampshire
1.86%
$5,580
$9,300
5
Vermont
1.83%
$5,490
$9,150
6
Wisconsin
1.73%
$5,190
$8,650
7
Texas
1.68%
$5,040
$8,400
8
Nebraska
1.63%
$4,890
$8,150
9
New York
1.62%
$4,860
$8,100
10
Rhode Island
1.53%
$4,590
$7,650
11
Pennsylvania
1.49%
$4,470
$7,450
12
Ohio
1.47%
$4,410
$7,350
13
Iowa
1.43%
$4,290
$7,150
14
Michigan
1.38%
$4,140
$6,900
15
Kansas
1.37%
$4,110
$6,850
16
Maine
1.30%
$3,900
$6,500
17
South Dakota
1.22%
$3,660
$6,100
18
Minnesota
1.11%
$3,330
$5,550
19
Massachusetts
1.10%
$3,300
$5,500
20
Alaska
1.07%
$3,210
$5,350
21-25
Median states
0.90-1.05%
$2,700-$3,150
$4,500-$5,250
26-35
Below average
0.70-0.89%
$2,100-$2,670
$3,500-$4,450
36-45
Low-tax states
0.50-0.69%
$1,500-$2,070
$2,500-$3,450
46
Louisiana
0.51%
$1,530
$2,550
47
Colorado
0.51%
$1,530
$2,550
48
Alabama
0.39%
$1,170
$1,950
49
West Virginia
0.36%
$1,080
$1,800
50
Hawaii
0.29%
$870
$1,450
National average: ~1.07% effective rate ($3,498/year on median home).
How Property Tax Is Calculated
The Formula
Component
Description
Example
Market value
What your home would sell for
$400,000
Assessment ratio
Percentage used for taxation (varies by state)
80%
Assessed value
Market value × assessment ratio
$320,000
Exemptions
Homestead, senior, veteran, etc.
-$50,000
Taxable value
Assessed value minus exemptions
$270,000
Mill rate / tax rate
Set by local taxing authorities
25 mills (2.5%)
Annual property tax
Taxable value × rate
$6,750
Who Sets the Rate
Taxing Authority
Typical Share of Tax Bill
School district
40-60%
County government
15-25%
City/municipality
15-25%
Special districts (fire, library, parks)
5-15%
Property Tax Exemptions
Common Homestead Exemptions
State
Homestead Exemption
Savings on $300,000 Home
Florida
$50,000 off assessed value
~$650/year
Texas
$100,000 off (school taxes)
~$1,300/year
California
$7,000 off assessed value
~$77/year
Georgia
$2,000 off assessed value (county)
~$60-100/year
Louisiana
$75,000 off assessed value
~$750/year
Illinois
$10,000 off EAV
~$250/year
Other Common Exemptions
Exemption Type
Who Qualifies
Typical Savings
Senior citizen
Age 62-65+ (varies by state)
$500-$5,000/year or assessed value freeze
Veteran/disabled veteran
Veterans with service-connected disability
$1,000-$100% exemption
Disability
Permanently disabled homeowners
$500-$5,000/year
Agricultural
Working farmland
Significant (taxed at farm use value)
Solar energy
Homes with solar panels
Solar value excluded from assessment
How to Appeal Your Property Tax
Step-by-Step Appeal Process
Step
Action
Timeline
1
Review your assessment notice
Within 1 week of receiving
2
Check your property card for factual errors
Week 1
3
Research comparable property sales and assessments
Receive decision / pursue further appeal if needed
2-6 months total
Common Grounds for Appeal
Issue
Example
Evidence Needed
Factual error
3 bedrooms listed as 4
Property card, building permit records
Over-assessment vs comps
Your $300K home assessed at $350K while similar homes are $290K
3-5 comparable sales within 1 year and 1 mile
Condition issues
Major structural problem not reflected
Photos, contractor estimate, inspection report
Market decline
Values dropped since last assessment
MLS data showing declining sales
Unequal assessment
Similar homes in your area assessed lower
Assessor records for comparable properties
Appeal Success Rates
Method
Average Success Rate
Average Reduction
Informal review (assessor’s office)
30-40%
5-10%
Formal appeal (board of review)
40-50%
10-15%
Professional tax appeal firm
50-70%
10-20%
Independent appraisal submitted
40-60%
Varies
Property Tax and Mortgage
How Property Tax Affects Your Monthly Payment
Home Price
Property Tax Rate
Annual Tax
Monthly Escrow
Added to Monthly Mortgage
$250,000
0.5% (low)
$1,250
$104
+$104
$250,000
1.0% (average)
$2,500
$208
+$208
$250,000
2.0% (high)
$5,000
$417
+$417
$400,000
0.5% (low)
$2,000
$167
+$167
$400,000
1.0% (average)
$4,000
$333
+$333
$400,000
2.0% (high)
$8,000
$667
+$667
Lifetime Property Tax Cost
Home Value
Tax Rate
Annual Tax
Over 30 Years (No Increases)
Over 30 Years (3% Annual Increase)
$300,000
1.0%
$3,000
$90,000
$142,700
$300,000
1.5%
$4,500
$135,000
$214,100
$300,000
2.0%
$6,000
$180,000
$285,400
$500,000
1.0%
$5,000
$150,000
$237,900
$500,000
2.0%
$10,000
$300,000
$475,700
Tax Deduction for Property Taxes
Filing Status
SALT Deduction Cap
Includes
Single
$40,400
Property tax + state/local income tax (or sales tax)
Married Filing Jointly
$40,400
Same combined cap
Married Filing Separately
$20,200
Same categories, lower cap
These are the 2026 caps. They shrink for modified AGI above $505,000 ($252,500 if married filing separately), to a floor of $10,000 ($5,000 if married filing separately).
Is Itemizing Worth It for Property Tax?
Scenario
Property Tax
State Income Tax
Mortgage Interest
Total Itemized
Standard Deduction (MFJ)
Should Itemize?
A
$3,000
$4,000
$12,000
$19,000
$32,200
No
B
$6,000
$5,000
$18,000
$29,000
$32,200
No
C
$8,000
$7,000
$22,000
$37,000*
$32,200
Yes**
*Property tax plus state income tax is $15,000, under the $40,400 SALT cap, so all of it counts: $15,000 + $22,000 = $37,000. **Itemizing beats the standard deduction by $4,800 ($37,000 - $32,200), saving $4,800 × marginal rate.
WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy
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