Property taxes by state: Ranked from highest to lowest

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Contributed by Tom McLean

Updated May 25, 2026

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7-minute read

Husband and wife leaning on deck balcony smiling.

Property taxes by state can swing your monthly payment by hundreds of dollars. See where taxes are highest and lowest, then estimate what you might owe based on your home’s value and location. Learn the basics of mill rates, why property taxes vary so much, and how escrow can change affordability.

Key takeaways:

Cities, counties, and school districts levy property taxes to pay for services like schools, police, firefighting, roads, and emergency response.
Rates depend on location. The amount you owe is calculated using the county's assessed value of your property and a local mill rate.
Because property taxes are usually paid with an escrow or impound account, higher taxes increase your monthly payment.

What are property taxes?

Property taxes pay for local schools, police, firefighters, road repairs, parks, and sanitation services. They're typically levied by state, city, town, or county governments. They also can be levied by school districts or other voter-approved authorities. The county where a property is located usually assesses home values and collects property taxes.

Property taxes are calculated using the county’s assessed value of the property and a mill rate, which is expressed in thousandths.

Property taxes may be deductible on your federal income tax return if you itemize your deductions. Consult a tax professional or financial adviser about your individual situation.

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What are property taxes based on?

Learn more about how properties are assessed and taxed.

Assessed value

The assessed value of your home or land for tax purposes can differ from its fair market value. Some states set the assessed value at 10% of market value, while others set it at 100%. There also are exemptions that can reduce the assessed value.

Mill rate

A mill rate of 1 means you pay $1 for every $1,000 in assessed value. If the mill rate is 30, a property owner will pay $30 for every $1,000 of assessed value. If your home is assessed at $400,000, a mill rate of 15 would result in a tax bill of $6,000.

Converting the mill rate to percentages requires moving the decimal point one place to the left. For example, Illinois has a mill rate of 19.23, which translates to a tax rate of 1.923%.

Variation

Since property tax is assessed at the local level, there's a wide variation in mill rates and assessed values. Tax bills and rates can vary significantly from town to town, county to county, and state to state.

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States ranked by property tax rate

Use the table below to learn more about the average property tax rates and bills in each state and the District of Columbia. The most recent data is from 2024. For an additional point of comparison, we’ve included a column with the tax rate for the median home value in the U.S. in the fourth quarter of 2024.

Rank	State	Effective tax rate	Property tax for $303,400 home*	State's median home value	Annual property tax for median home value
1	New Jersey	2.23%	$6,770	$427,600	$9,541
2	Illinois	2.07%	$6,285	$250,500	$5,189
3	Connecticut	1.92%	$5,813	$343,200	$6,575
4	New Hampshire	1.77%	$5,375	$367,200	$6,505
5	Vermont	1.71%	$5,176	$290,500	$4,956
6	New York	1.60%	$4,856	$403,000	$6,450
7	Texas	1.58%	$4,790	$260,400	$4,111
8	Wisconsin	1.51%	$4,594	$247,400	$3,746
9	Nebraska	1.50%	$4,542	$223,800	$3,350
10	Iowa	1.43%	$4,329	$195,900	$2,795
11	Ohio	1.36%	$4,131	$199,200	$2,712
12	Pennsylvania	1.35%	$4,089	$240,500	$3,241
13	Rhode Island	1.32%	$3.993	$368,800	$4,854
14	Kansas	1.30%	$3,942	$203,400	$2,643
15	Michigan	1.28%	$3,897	$217,600	$2,795
16	Alaska	1.14%	$3,445	$333,300	$3,785
17	Massachusetts	1.11%	$3,354	$525,800	$5,813
18	Maine	1.10%	$3,332	$266,400	$2,926
19	South Dakota	1.09%	$3,318	$236,800	$2,590
20	Minnesota	1.04%	$3,162	$305,500	$3,184
21	Maryland	1.00%	$3,043	$397,700	$3,989
22	North Dakota	0.99%	$3,010	$241,100	$2,392
23	Missouri	0.88%	$2,655	$215,600	$1,887
24	Washington	0.84%	$2,545	$519,800	$4,361
25	Oregon	0.83%	$2,516	$454,200	$3,767
26	Oklahoma	0.82%	$2,481	$185,900	$1,520
27	Georgia	0.81%	$2,461	$272,900	$2,214
28	Florida	0.79%	$2,385	$325,000	$2,555
29	Kentucky	0.77%	$2,322	$192,300	$1,472
30	Montana	0.75%	$2,275	$338,100	$2,535
31	Indiana	0.74%	$2,251	$201,600	$1,496
32	Mississippi	0.74%	$2,235	$161,400	$1,189
33	Virginia	0.74%	$2,259	$360,700	$2,686
34	New Mexico	0.72%	$2,181	$232,200	$1,669
35	California	0.71%	$2,149	$695,400	$4,926
36	North Carolina	0.70%	$2,123	$259,400	$1,815
37	District of Columbia	0.58%	$1,750	$724,600	$4,180
38	Wyoming	0.58%	$1,765	$285,100	$1,659
39	Arkansas	0.57%	$1,736	$175,300	$1,003
40	Tennessee	0.55%	$1,654	$256,800	$1,400
41	Louisiana	0.55%	$1,666	$208,700	$1,146
42	West Virginia	0.54%	$1,628	$155,600	$835
43	Delaware	0.53%	$1,607	$326,800	$1,731
44	Idaho	0.53%	$1,619	$376,000	$2,006
45	Utah	0.53%	$1,608	$455,000	$2,412
46	Arizona	0.52%	$1,571	$358,900	$1,858
47	South Carolina	0.51%	$1,537	$236,700	$1,199
48	Nevada	0.49%	$1,472	$406,100	$1,970
49	Colorado	0.49%	$1,479	$502,200	$2,448
50	Alabama	0.38%	$1,148	$195,100	$738
51	Hawaii	0.27%	$820	$808,200	$2,183

Sources: U.S. Census Bureau, 2024 American Community Survey, 1-Year Estimates; U.S. Census Bureau and U.S. Department of Housing and Urban Development median sale price of houses sold for the United States Q4 2024

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Why do property tax rates by state vary so much?

Different municipalities and counties have different needs and priorities to fund with the property taxes they collect.

Local governments use property taxes to pay for schools, emergency services, police, firefighters, parks, roads, and public transportation.

Home values affect tax bills. If home prices in a specific county are high, a low rate combined with those high values may bring in enough to cover government expenses. In a place with lower values, the rate may need to be raised to bring in enough revenue, or the government may spend less on services.

The frequency of property reassessment impacts the price of these taxes. Some states reassess property values annually, while others do so every other year. Other states have rate caps, and other states – including California – reassess property values only when a property changes ownership.

Home values also affect property taxes. Hawaii has high home values but low property taxes.

State property tax exemptions

Many states offer property tax exemptions that allow specific homeowners or properties to reduce their assessed value and their tax obligation.

Veterans: These exemptions are offered to disabled veterans or those who served in the military.
Seniors: Many states give property tax relief to seniors. This exemption may have an income limit.
Disabled: Homeowners with permanent disabilities often qualify for property tax exemptions.
Homestead: In states with a homestead exemption, a homeowner’s property taxes are reduced, often by a percentage or up to a specific amount. States have different rules, but this is a common exemption for primary residences.

If you think you qualify for a property tax exemption, visit your local tax assessor’s website. You’ll likely need to fill out a form and document your eligibility for the exemption. You may also need to do this by a specific date or renew the exemption every year. Each state, county, and municipality has its own rules.

How property taxes affect home affordability

Many homeowners pay property taxes with an escrow account, which divides their bill into monthly installments and adds it to their monthly mortgage payment. The lender holds the money in escrow and pays the bill on your behalf when it's due.

Increases in property taxes can increase your monthly payment, even if you have a fixed-rate mortgage. It's important to check the affordability of a home and be prepared if your property taxes increase.

It's important to research property tax costs when calculating a home's affordability. Tax rates and payments are public record, which allows you to research the rates and tax bills on a property you are thinking of buying.

Because property taxes are an ongoing homeownership cost, it’s important to plan for these in your budgeting, regardless of whether they’re included in your monthly mortgage calculation.

FAQ

Learn more about property tax costs by exploring the FAQ below.

Which state has the highest property taxes?

According to the latest data, Illinois has the highest effective property tax rate at 1.923%. The median annual property tax payment is $5,399.

Do property taxes go up every year?

Not always, but they can. States have different rules about when properties are reassessed and when and how the mill rate can increase.

Can you appeal your property tax assessment?

Yes. If you believe your assessment is too high, you can appeal. Follow your state's rules for filing an appeal and provide proof, such as an independent appraisal.

Are property taxes included in a mortgage payment?

Most borrowers pay a monthly amount into an escrow account to cover their property taxes. If your lender doesn't require an escrow account, you can pay this bill yourself. However, it's important to make sure you pay property taxes on time and in full. If you fail to pay property taxes on time, you may incur penalties. If you fall far enough behind on your property tax bill, you risk losing your home. Avoiding this risk is one of the primary reasons lenders offer escrow accounts that ensure this bill is paid on time.

What happens if you don’t pay property taxes?

The consequences of unpaid property taxes can be severe. Failure to pay can result in penalties, interest charges, and, potentially, a tax lien on your property. This could result in a tax sale, in which you lose your property. The good news is that there is plenty of help if you think you might fall behind on your property taxes. Many states offer grace periods, payment plans, or even deferrals. The important thing is to contact your local tax authority as soon as you believe you might not be able to pay your taxes on time.

The bottom line: Property tax by state

Property taxes are calculated based on your county's assessed value and mill rate, making them highly variable depending on where you live. Budgeting for these costs is critical. If your property taxes are escrowed, servicers will divide the cost over the year. Keep in mind that if property taxes increase, your monthly mortgage payments may also increase to cover the adjusted escrow amount.

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This article is for informational purposes only and is not intended to provide financial, investment, or tax advice. You should consult a qualified financial or tax professional before making decisions regarding your retirement funds or mortgage.

Rocket Mortgage is a trademark or service mark of Rocket Mortgage, LLC or its affiliates.

Kevin Graham

Kevin Graham is a Senior Writer for Rocket. He specializes in mortgage qualification, economics and personal finance topics. Kevin has passed the MLO SAFE exam given to mortgage bankers and takes continuing education courses. As someone with cerebral palsy spastic quadriplegia that requires the use of a wheelchair, he also takes on articles around modifying your home for physical challenges and smart home tech. He has a BA in Journalism from Oakland University.