Property Tax by State: Complete 2026 Guide and Comparison

Property tax is the single biggest expense most homeowners don’t quote when they talk about their house. A mortgage payment on a $400,000 home can differ by $500+ per month depending on whether the property sits in New Jersey or Alabama — purely from property tax. Over a 30-year mortgage, that’s almost $200,000 of pure geographic variance.

This guide ranks all 50 states and DC by effective property tax rate, explains how property tax is actually calculated (it’s not as simple as most homeowners think), and shows how to evaluate the true housing cost when comparing regions.

Average Property Tax by State — 2026 Rankings

The table below shows effective property tax rates — the actual annual tax divided by the home’s market value. This is the number that matters when comparing states.

Rank	State	Effective Rate	Median Home Value	Annual Tax on Median Home
1 (highest)	New Jersey	2.23%	$420,000	$9,370
2	Illinois	2.08%	$275,000	$5,720
3	New Hampshire	1.97%	$390,000	$7,680
4	Connecticut	1.91%	$360,000	$6,880
5	Vermont	1.83%	$320,000	$5,860
6	Texas	1.74%	$305,000	$5,310
7	Nebraska	1.67%	$240,000	$4,010
8	Wisconsin	1.63%	$250,000	$4,080
9	Ohio	1.59%	$220,000	$3,500
10	Pennsylvania	1.49%	$245,000	$3,650
…
~median	Washington	0.93%	$575,000	$5,350
…
42	Tennessee	0.67%	$285,000	$1,910
43	South Carolina	0.57%	$260,000	$1,480
44	Louisiana	0.55%	$200,000	$1,100
45	Arkansas	0.62%	$180,000	$1,120
46	West Virginia	0.58%	$150,000	$870
47	Utah	0.57%	$485,000	$2,770
48	Nevada	0.55%	$430,000	$2,370
49	Colorado	0.55%	$510,000	$2,810
50	Alabama	0.41%	$200,000	$820
51 (lowest)	Hawaii	0.28%	$720,000	$2,020

Numbers are approximate 2026 averages — actual rates vary by county and city within each state. Estimate your specific property tax with our Property Tax Calculator.

Two things jump out of this table. First, the nationwide effective-rate range is nearly 8×: Hawaii’s 0.28% vs New Jersey’s 2.23%. Second, low rates don’t always mean low bills — Hawaii’s 0.28% on a $720K median home produces a $2,020/year bill, while Alabama’s 0.41% on a $200K home produces only $820. Your bill is rate × value, and both matter.

How Property Tax Is Calculated

The actual formula looks deceptively simple:

Annual property tax = assessed value × millage rate

But each of those two inputs hides several steps:

Assessed value is the value the local assessor assigns to your property. It may differ significantly from market value because of assessment ratios. Example: In Georgia, assessed value = 40% of fair market value by state law. So a $400,000 home has a $160,000 assessed value. The millage rate is then applied to the $160,000, not the $400,000.

Many states assess at 100% of market value (WA, CA after initial purchase, FL, NY after equalization)
Others use fractional assessment (GA 40%, MS 10% for residential)
Some cap annual assessment increases (CA Prop 13 limits to 2%/year until sale)

Millage rate (or “mill rate”) is the tax per $1,000 of assessed value. A rate of 25 mills means $25 per $1,000, or 2.5%.

Millage is usually the combined total of rates from multiple overlapping authorities: county + city/township + school district + special districts (fire, library, water). In many states, the school district portion is the largest single slice — often 50–65% of the total property tax bill.

Homestead exemption — most states offer a reduction in assessed value for your primary residence. Florida exempts the first $50,000 of assessed value for homestead property. Texas exempts $100,000 from school district tax. If you qualify, claim it — the paperwork is usually simple and the savings are real.

States With No Property Tax?

Zero. No state charges zero property tax. Local government funding depends too heavily on it.

The lowest effective rates in the country are:

Hawaii: 0.28%
Alabama: 0.41%
Colorado, Nevada, Utah, South Carolina: all around 0.55%

A few states cap annual increases as a way to keep bills predictable:

California (Prop 13) — assessed value can rise only 2%/year until the home is sold, then it resets to current market. Long-term owners can have assessments dramatically below market value.
Florida (Save Our Homes) — primary residence annual increase capped at 3% or CPI, whichever is lower.
Texas (homestead cap) — annual assessment increase limited to 10% on homestead property.

These caps help long-term owners but create jarring increases for new buyers, who are assessed at current market value.

Property Tax vs Income Tax vs Sales Tax

States fund themselves through some combination of three main taxes: income, sales, and property. States that go light on one usually go heavy on another.

Category	States That Lean Heavy Here	States That Lean Light Here
High property tax	NJ, IL, NH, CT, TX	AL, HI, CO, LA
High income tax	CA, NY, OR, HI	No-income-tax: TX, FL, WA, NV, TN, SD, WY, AK, NH
High sales tax	CA, LA, TN, AR, WA	No-sales-tax: OR, MT, NH, DE, AK

New Hampshire and Texas are textbook cases: no state income tax, so they lean harder on property tax (NH at 1.97%, TX at 1.74%). Oregon is the opposite: no sales tax, so it relies on income tax and moderate property tax.

For a real comparison between two states you’re considering moving between, you need to add all three together:

Estimate your income tax with our Tax Calculator
Compare sales tax with our Sales Tax Calculator
Combine everything using our Cost of Living Calculator, which also factors housing prices, utilities, groceries, and transportation

How Property Tax Affects Home Affordability

Property tax is baked into your monthly mortgage payment through PITI (Principal, Interest, Taxes, Insurance). The tax portion often rivals the principal portion on a new mortgage.

Comparing a $350,000 home across three states, assuming 20% down at 6.5% on a 30-year fixed:

State	Effective Rate	Annual Tax	Monthly Tax Added to PITI
New Jersey	2.23%	$7,805	+$650/month
Texas	1.74%	$6,090	+$508/month
Washington	0.93%	$3,255	+$271/month
Alabama	0.41%	$1,435	+$120/month
Hawaii	0.28%	$980	+$82/month

The total monthly payment (PITI) on the same $350,000 home ranges from roughly $1,850 in Hawaii to $2,420 in New Jersey — a $570/month difference, driven almost entirely by property tax. Over 30 years: $205,000.

When comparing mortgages between states, always include property tax in the math. Our Mortgage Calculator lets you set the property tax rate directly.

How to Lower Your Property Tax

You usually can’t lower the millage rate — that’s set by local government — but you can lower your assessed value, which has the same practical effect.

Appeal your assessment. National success rate for appeals is 40–60%, and typical successful appeals cut the bill by 10–20%. Check your assessment against recent sales of comparable homes (three or four with similar square footage, bedrooms, age, and neighborhood). If your assessment is materially higher than the comparables sold for, file an appeal with your county assessor. Most appeals have a narrow window — typically 30–60 days after assessments are mailed.

Check your record for errors. Property records often contain mistakes: wrong square footage, extra bathrooms listed, a pool that was filled in, a finished basement that’s actually unfinished. Every error inflates your assessment. Pull your property card from the assessor’s website and correct anything that’s wrong.

Claim every exemption you qualify for. Categories vary by state, but common ones include:

Homestead (primary residence)
Senior citizen (usually 65+)
Veteran and disabled veteran
Disability
Agricultural / forestry use (for rural land)
Renewable energy (solar panel improvements often don’t add to assessment)

The paperwork is free. The savings can be 5–30% of the bill. Many homeowners who’d qualify never apply.

Watch for reassessment after improvements. Major additions and renovations trigger reassessment. A new addition can add 20–30% to your property tax bill. This doesn’t mean don’t remodel — it means budget for the higher tax bill when planning.

Property Tax on Rental and Commercial Property

Rental and commercial property typically faces higher rates than primary residences in many states — the homestead exemption only applies to owner-occupants. If you’re thinking about buying a rental:

Check whether your state has a separate “non-owner-occupied” classification with a higher rate.
Factor the full property tax into your rental-return math. A 2% annual tax on a $300K rental is $6,000/year — directly reducing your net rental yield.
Some states allow property tax to be reduced for buildings producing certain types of affordable housing.

What Happens If You Don’t Pay

Property tax takes priority over almost everything else tied to the property — including the mortgage. The progression in most states:

Late fee / penalty added to the bill (first 30–60 days)
Interest accrues on the unpaid balance (typically 6–18%/year)
Tax lien placed on the property
Tax lien auctioned to investors (in some states)
Eventually, tax foreclosure — the property can be sold to satisfy back taxes

If you have a mortgage, your lender usually escrows property tax along with your monthly payment and pays it on your behalf — which is why missed property tax is rare for mortgaged homes. For paid-off homes, it’s the owner’s responsibility to pay directly.

Final Reality Check

When comparing home prices across states, a $350,000 home in New Jersey is economically closer to a $440,000 home in Hawaii — because the extra $90,000 of price in Hawaii is offset by 30 years of significantly lower property tax. This is easy to miss when home-shopping by sticker price.

The smart comparison for any cross-state move or investment decision is always total monthly PITI, not purchase price alone.

Estimate your property tax. Our free Property Tax Calculator shows annual and monthly property tax for any state and home value, with homestead exemption accounted for. Use the Cost of Living Calculator to see the full picture when comparing states.