Property tax rates by state range from 1.88% of a home's value in New Jersey and Illinois to 0.29% in Hawaii, based on the Tax Foundation's 2026 analysis of Census Bureau data for owner-occupied homes [2]. Applied to typical home values as of July 31, 2026, that rate means an owner of a typical New Jersey home ($578,009) pays roughly $10,867 a year, while an owner of a typical Hawaii home, worth $830,594, pays about $2,409 [1][2]. The real cost of ownership depends on both the rate and the value it applies to, and the gap between states is wide enough to change the math on buying.
Property tax rates by state: the 2026 ranking
The Tax Foundation measures the effective property tax rate as median real estate taxes paid divided by median home value, using the Census Bureau's 2024 American Community Survey five-year estimates [2]. The ten states with the highest effective rates are:
- New Jersey: 1.88%
- Illinois: 1.88%
- Connecticut: 1.54%
- Vermont: 1.51%
- New Hampshire: 1.50%
- Nebraska: 1.44%
- Texas: 1.40%
- Ohio: 1.36%
- Iowa: 1.33%
- Wisconsin: 1.32%
The lowest rates are in Hawaii (0.29%), Alabama (0.37%), Arizona and Utah (0.48% each) and South Carolina (0.49%) [2]. Effective rates fell in 42 of 50 states between the 2023 and 2024 data, a sign that home values rose faster than tax levies; New Jersey's rate, for example, declined from 1.98% to 1.88% [2].
Estimated annual property tax on the typical home in each state
The table applies each state's 2024 effective rate to its Zillow Home Value Index for July 2026, the typical value of homes in the middle third of the market, as published on DataPorium [1][2]. The dollar figure is an illustrative estimate of what an owner would pay at the state's average effective rate; actual bills vary by county, school district, exemptions and how recently the home was bought.
| Rank | State | Effective rate, 2024 | Typical home value, July 2026 | Estimated annual tax |
|---|---|---|---|---|
| 1 | New Jersey | 1.88% | $578,009 | $10,867 |
| 2 | Illinois | 1.88% | $296,026 | $5,565 |
| 3 | Connecticut | 1.54% | $448,689 | $6,910 |
| 4 | Vermont | 1.51% | $400,082 | $6,041 |
| 5 | New Hampshire | 1.50% | $514,431 | $7,716 |
| 6 | Nebraska | 1.44% | $279,966 | $4,032 |
| 7 | Texas | 1.40% | $299,619 | $4,195 |
| 8 | Ohio | 1.36% | $248,103 | $3,374 |
| 9 | Iowa | 1.33% | $238,957 | $3,178 |
| 10 | Wisconsin | 1.32% | $338,570 | $4,469 |
| 11 | New York | 1.30% | $523,828 | $6,810 |
| 12 | Pennsylvania | 1.26% | $289,635 | $3,649 |
| 13 | Kansas | 1.21% | $248,837 | $3,011 |
| 14 | Michigan | 1.19% | $265,754 | $3,162 |
| 15 | Rhode Island | 1.12% | $508,954 | $5,700 |
| 16 | Massachusetts | 1.00% | $660,207 | $6,602 |
| 17 | Minnesota | 1.00% | $350,230 | $3,502 |
| 18 | South Dakota | 1.00% | $321,415 | $3,214 |
| 19 | Maine | 0.98% | $415,556 | $4,072 |
| 20 | Alaska | 0.94% | $397,444 | $3,736 |
| 21 | Maryland | 0.92% | $428,370 | $3,941 |
| 22 | North Dakota | 0.92% | $291,678 | $2,683 |
| 23 | Missouri | 0.89% | $266,877 | $2,375 |
| 24 | Oregon | 0.81% | $495,362 | $4,012 |
| 25 | Georgia | 0.79% | $330,865 | $2,614 |
| 26 | Oklahoma | 0.79% | $222,811 | $1,760 |
| 27 | Virginia | 0.78% | $413,759 | $3,227 |
| 28 | Florida | 0.78% | $375,277 | $2,927 |
| 29 | Indiana | 0.76% | $259,388 | $1,971 |
| 30 | Washington | 0.75% | $591,755 | $4,438 |
| 31 | Kentucky | 0.74% | $232,419 | $1,720 |
| 32 | California | 0.70% | $762,865 | $5,340 |
| 33 | North Carolina | 0.66% | $335,159 | $2,212 |
| 34 | New Mexico | 0.63% | $318,092 | $2,004 |
| 35 | Montana | 0.61% | $471,127 | $2,874 |
| 36 | Mississippi | 0.58% | $197,663 | $1,146 |
| 37 | Arkansas | 0.56% | $226,854 | $1,270 |
| 38 | Louisiana | 0.55% | $216,883 | $1,193 |
| 39 | Delaware | 0.54% | $405,257 | $2,188 |
| 40 | Wyoming | 0.53% | $370,956 | $1,966 |
| 41 | Tennessee | 0.52% | $334,181 | $1,738 |
| 42 | West Virginia | 0.51% | $178,955 | $913 |
| 43 | Colorado | 0.50% | $531,997 | $2,660 |
| 44 | Idaho | 0.50% | $476,851 | $2,384 |
| 45 | Nevada | 0.50% | $442,696 | $2,213 |
| 46 | South Carolina | 0.49% | $306,523 | $1,502 |
| 47 | Utah | 0.48% | $533,755 | $2,562 |
| 48 | Arizona | 0.48% | $418,432 | $2,008 |
| 49 | Alabama | 0.37% | $241,298 | $893 |
| 50 | Hawaii | 0.29% | $830,594 | $2,409 |
Why the rate is only half the cost of ownership
A low rate does not guarantee a low bill. California's effective rate of 0.70% is below the national middle, but applied to a typical value of $762,865 it implies about $5,340 a year, more than the $4,195 implied for Texas at 1.40% [1][2]. The largest estimated bills are in New Jersey ($10,867), New Hampshire ($7,716) and Connecticut ($6,910), states that combine above-average rates with high home values.
High-rate states without an income tax
Texas and New Hampshire rank among the ten highest property tax states partly because neither levies a broad personal income tax on wages, so local governments lean on property as their main tax base [2]. For a household comparing states, the full tax burden matters more than any single tax. Illinois and New Jersey, by contrast, impose high property taxes alongside high rates in the other major tax categories, as the Tax Foundation notes, so their residents get no offset [2].
Property tax by metro: core county rates and median bills
Within states, rates vary by county. The table shows the effective rate, the median annual tax bill and the median home value (all 2024 Census data compiled by the Tax Foundation) for the county containing the principal city of each of the 20 largest metro areas [2]. For New York, the figures are for Brooklyn (Kings County).
| Metro | Core county effective rate | Median tax bill, 2024 | Median home value, 2024 | Monthly tax cost |
|---|---|---|---|---|
| Chicago | 1.73% | $6,191 | $324,500 | $516 |
| Houston | 1.50% | $4,489 | $276,600 | $374 |
| Detroit | 1.47% | $2,904 | $178,500 | $242 |
| Dallas | 1.45% | $4,798 | $303,000 | $400 |
| Baltimore | 1.37% | $3,354 | $229,600 | $280 |
| Minneapolis | 1.10% | $4,480 | $392,900 | $373 |
| Atlanta | 0.89% | $4,033 | $458,800 | $336 |
| Philadelphia | 0.85% | $2,003 | $243,100 | $167 |
| Tampa | 0.84% | $3,010 | $371,500 | $251 |
| Riverside | 0.83% | $4,348 | $557,300 | $362 |
| Miami | 0.81% | $3,744 | $463,000 | $312 |
| Seattle | 0.76% | $7,114 | $859,900 | $593 |
| San Francisco | 0.72% | $9,862 | $1,394,500 | $822 |
| Boston | 0.69% | $4,649 | $705,800 | $387 |
| Los Angeles | 0.67% | $5,675 | $834,200 | $473 |
| San Diego | 0.67% | $5,774 | $854,700 | $481 |
| Washington | 0.60% | $4,312 | $737,100 | $359 |
| New York | 0.56% | $6,382 | $905,000 | $532 |
| Denver | 0.47% | $2,751 | $616,000 | $229 |
| Phoenix | 0.44% | $1,983 | $452,800 | $165 |
Chicago's Cook County has the highest rate among these counties at 1.73%, followed by Houston (1.50%), Detroit (1.47%) and Dallas (1.45%) [2]. Phoenix's Maricopa County (0.44%) and Denver (0.47%) have the lowest. In dollars, San Francisco's median bill of $9,862 is the largest, even at a 0.72% rate, because its median home value is $1,394,500. ZIP-level rate ranges for any address can be checked in DataPorium's real estate tools, which carry 25th, 50th and 75th percentile effective rates by ZIP code [3].
What property taxes mean for buyers and investors
Property tax is a permanent part of the monthly payment. At Cook County's median bill, it adds about $516 a month; in Maricopa County, about $165 [2]. For rental investors, a high rate lowers the net yield on every dollar of rent, which is one reason that higher gross yields in Texas and the Midwest do not always translate into higher net returns. From a fiscal perspective, lower and simpler property taxes support ownership and investment, while heavy reliance on property taxes to fund rising local budgets pushes costs onto owners and, through rents, onto tenants. The fair counterpoint is that property taxes fund schools, roads and public safety that buyers pay for through home prices in any case.
The effective tax rate tells only half the story; the bill depends on the rate multiplied by what homes in the area are worth.
Key takeaways
- New Jersey and Illinois have the highest effective property tax rates at 1.88%; Hawaii has the lowest at 0.29%, followed by Alabama at 0.37% [2].
- On typical July 2026 home values, estimated annual bills range from about $893 in Alabama to $10,867 in New Jersey [1][2].
- California's low 0.70% rate still implies about $5,340 a year on a typical $762,865 home [1][2].
- Among large-metro core counties, Cook County has the highest rate at 1.73% and Maricopa County the lowest at 0.44% [2].
Frequently asked questions
Which state has the highest property tax rate in 2026?
New Jersey and Illinois tie for the highest effective property tax rate at 1.88% of home value, according to the Tax Foundation's 2026 analysis of 2024 Census data [2].
Which state has the lowest property taxes?
Hawaii has the lowest effective rate at 0.29%, followed by Alabama at 0.37% [2]. In dollars, Alabama has the lowest estimated bill on a typical home at about $893 a year [1][2].
How is the effective property tax rate calculated?
It is the median annual real estate tax paid by homeowners divided by the median value of owner-occupied homes, which captures exemptions and assessment limits that statutory rates miss [2].
How much is property tax on a $400,000 house?
At New Jersey's 1.88% effective rate, a $400,000 home would carry about $7,520 a year in property tax; at Hawaii's 0.29%, about $1,160 [2].
