Property taxes are a major ongoing cost of homeownership and vary dramatically by state. New Jersey homeowners pay nearly 8x the rate of Hawaii homeowners. Understanding property tax rates is essential for budgeting and comparing the true cost of homeownership across states.
Table of Contents
Effective Property Tax Rate by State
| Rank | State | Effective Rate | Median Home Value | Annual Tax on Median Home |
|---|---|---|---|---|
| 1 | New Jersey | 2.21% | $395,000 | $8,730 |
| 2 | Illinois | 2.07% | $240,000 | $4,968 |
| 3 | New Hampshire | 1.86% | $380,000 | $7,068 |
| 4 | Connecticut | 1.79% | $335,000 | $5,997 |
| 5 | Vermont | 1.73% | $290,000 | $5,017 |
| 6 | Wisconsin | 1.61% | $250,000 | $4,025 |
| 7 | Texas | 1.60% | $285,000 | $4,560 |
| 8 | Nebraska | 1.54% | $230,000 | $3,542 |
| 9 | New York | 1.40% | $380,000 | $5,320 |
| 10 | Pennsylvania | 1.36% | $245,000 | $3,332 |
| 11 | Ohio | 1.34% | $195,000 | $2,613 |
| 12 | Iowa | 1.29% | $200,000 | $2,580 |
| 13 | Michigan | 1.28% | $225,000 | $2,880 |
| 14 | Kansas | 1.25% | $210,000 | $2,625 |
| 15 | Rhode Island | 1.24% | $380,000 | $4,712 |
| 16 | Maine | 1.20% | $310,000 | $3,720 |
| 17 | South Dakota | 1.17% | $220,000 | $2,574 |
| 18 | Minnesota | 1.05% | $310,000 | $3,255 |
| 19 | Massachusetts | 1.04% | $530,000 | $5,512 |
| 20 | Alaska | 1.04% | $320,000 | $3,328 |
| 21 | North Dakota | 0.99% | $240,000 | $2,376 |
| 22 | Maryland | 0.99% | $390,000 | $3,861 |
| 23 | Missouri | 0.95% | $215,000 | $2,043 |
| 24 | Oregon | 0.93% | $440,000 | $4,092 |
| 25 | Florida | 0.91% | $380,000 | $3,458 |
| 26 | Montana | 0.90% | $390,000 | $3,510 |
| 27 | Indiana | 0.88% | $200,000 | $1,760 |
| 28 | Georgia | 0.87% | $290,000 | $2,523 |
| 29 | Washington | 0.87% | $530,000 | $4,611 |
| 30 | North Carolina | 0.82% | $280,000 | $2,296 |
| 31 | Virginia | 0.80% | $360,000 | $2,880 |
| 32 | Oklahoma | 0.79% | $185,000 | $1,462 |
| 33 | Kentucky | 0.78% | $185,000 | $1,443 |
| 34 | California | 0.71% | $680,000 | $4,828 |
| 35 | Idaho | 0.69% | $380,000 | $2,622 |
| 36 | Tennessee | 0.67% | $280,000 | $1,876 |
| 37 | Arizona | 0.66% | $370,000 | $2,442 |
| 38 | Mississippi | 0.65% | $150,000 | $975 |
| 39 | New Mexico | 0.63% | $260,000 | $1,638 |
| 40 | Delaware | 0.61% | $320,000 | $1,952 |
| 41 | Nevada | 0.58% | $390,000 | $2,262 |
| 42 | Wyoming | 0.56% | $305,000 | $1,708 |
| 43 | Utah | 0.55% | $435,000 | $2,393 |
| 44 | South Carolina | 0.54% | $265,000 | $1,431 |
| 45 | Louisiana | 0.53% | $195,000 | $1,034 |
| 46 | West Virginia | 0.51% | $130,000 | $663 |
| 47 | Arkansas | 0.50% | $175,000 | $875 |
| 48 | Colorado | 0.49% | $510,000 | $2,499 |
| 49 | Alabama | 0.37% | $200,000 | $740 |
| 50 | Hawaii | 0.27% | $750,000 | $2,025 |
The True Cost: Rate vs. Dollar Amount
A low property tax rate doesn’t always mean low bills. California’s rate (0.71%) is below average, but high home prices mean a $680,000 home still generates a $4,828 tax bill.
| State | Rate | Avg Home Value | Annual Tax | Monthly Cost |
|---|---|---|---|---|
| New Jersey | 2.21% | $395K | $8,730 | $728 |
| Texas | 1.60% | $285K | $4,560 | $380 |
| California | 0.71% | $680K | $4,828 | $402 |
| Hawaii | 0.27% | $750K | $2,025 | $169 |
| Alabama | 0.37% | $200K | $740 | $62 |
Property Tax and the SALT Deduction
The State and Local Tax (SALT) deduction on federal taxes is capped at $10,000. This disproportionately affects residents of high-property-tax states:
| State | Avg. Property Tax | State Income Tax (at $100K) | Total SALT | Excess Over Cap |
|---|---|---|---|---|
| New Jersey | $8,730 | $4,900 | $13,630 | $3,630 |
| Connecticut | $5,997 | $5,000 | $10,997 | $997 |
| New Hampshire | $7,068 | $0 | $7,068 | Under cap |
| Texas | $4,560 | $0 | $4,560 | Under cap |
How Property Taxes Affect Home Affordability
Property taxes add significantly to the total cost of homeownership. On a $350,000 home:
| State | Rate | Monthly Property Tax | Mortgage (P&I) | Total Housing Payment |
|---|---|---|---|---|
| New Jersey | 2.21% | $645 | $1,844 | $2,489 |
| Texas | 1.60% | $467 | $1,844 | $2,311 |
| Florida | 0.91% | $265 | $1,844 | $2,109 |
| Colorado | 0.49% | $143 | $1,844 | $1,987 |
| Hawaii | 0.27% | $79 | $1,844 | $1,923 |
The difference in total payment between New Jersey and Hawaii is $566/month — or $6,792/year — on the same-priced home.
Property Tax Exemptions
Most states offer exemptions that reduce your assessed value:
| Exemption Type | Typical Savings | Availability |
|---|---|---|
| Homestead exemption | $25,000–$75,000 off assessed value | Most states |
| Senior citizen exemption | Varies widely | 45+ states |
| Veteran/disability exemption | Partial to full | All states |
| Agricultural/farmland | Reduced assessment rate | All states |
Texas offers one of the most generous homestead exemptions: $100,000 off assessed value for school district taxes, plus a freeze on school taxes for those 65+.
Related: Median Home Price by State | Average Mortgage Payment | States With No Income Tax | Cost of Living by State
