How is the effective property tax rate calculated?

The effective property tax rate is calculated by dividing the annual property tax paid by the home's market value. For example, $3,000 in annual taxes on a $300,000 home equals a 1.0% effective rate. This differs from nominal millage rates because it accounts for exemptions and assessment ratios.

Rob Hartley

Founder, AppealDesk · March 5, 2026

US map showing property tax rates by state

Average Property Tax Rate by State (2026 Data)

Q: Which state has the lowest property tax rate?

Hawaii has the lowest effective property tax rate at 0.27%, followed by Alabama, Colorado, Nevada, and Utah. Despite high home values, Hawaii homeowners pay a median of just $1,893 per year.

The national average effective property tax rate is 1.1%, with a median annual tax bill of $2,690.

Source: U.S. Census Bureau American Community Survey (2024 estimates). Rates shown are effective rates (actual tax paid / home market value), not nominal millage rates.

Property tax rates vary dramatically across the United States. New Jersey homeowners pay over 2% of their home value in property taxes each year, while Hawaii homeowners pay under 0.3%. Understanding where your state ranks helps you determine whether your assessment is reasonable or worth challenging.

If your property tax bill is significantly above the median for your state or county, your home may be overassessed. Every state allows homeowners to appeal their assessment. See how your state compares below, then check whether your specific property is overassessed using our free assessment check.

Property Tax Rates by State: Complete 2026 Table

Rank	State	Effective Rate	Median Home Value	Median Annual Tax	Appeal Guide
1	New Jersey	2.23%	$395,000	$8,809	Appeal guide
2	Connecticut	2.15%	$311,000	$6,687	Appeal guide
3	New Hampshire	2.09%	$339,000	$7,085	Appeal guide
4	Illinois	2.07%	$239,000	$4,947	Appeal guide
5	Vermont	1.83%	$272,000	$4,978	Appeal guide
6	New York	1.62%	$370,000	$5,994	Grievance guide
7	Nebraska	1.61%	$190,000	$3,059	Appeal guide
8	Wisconsin	1.61%	$228,000	$3,671	Appeal guide
9	Texas	1.6%	$238,000	$3,808	Protest guide
10	Ohio	1.53%	$173,000	$2,647	Appeal guide
11	Pennsylvania	1.53%	$220,000	$3,366	Appeal guide
12	Iowa	1.52%	$165,000	$2,508	Appeal guide
13	Rhode Island	1.4%	$343,000	$4,802	Appeal guide
14	Michigan	1.38%	$201,000	$2,774	Appeal guide
15	Kansas	1.33%	$175,000	$2,328	Appeal guide
16	Maine	1.24%	$253,000	$3,137	Appeal guide
17	South Dakota	1.17%	$214,000	$2,504	Appeal guide
18	Massachusetts	1.12%	$466,000	$5,219	Appeal guide
19	Maryland	1.07%	$380,000	$4,066	Appeal guide
20	Alaska	1.04%	$318,000	$3,307	Appeal guide
21	Minnesota	1.02%	$275,000	$2,805	Appeal guide
22	North Dakota	0.98%	$209,000	$2,048	Appeal guide
23	Missouri	0.93%	$182,000	$1,693	Appeal guide
24	Georgia	0.9%	$249,000	$2,241	Appeal guide
25	Oklahoma	0.87%	$153,000	$1,331	Appeal guide
26	Oregon	0.87%	$397,000	$3,454	Appeal guide
27	Florida	0.86%	$338,000	$2,907	Appeal guide
28	Kentucky	0.86%	$155,000	$1,333	Appeal guide
29	Indiana	0.85%	$182,000	$1,547	Appeal guide
30	Washington	0.84%	$476,000	$3,998	Appeal guide
31	North Carolina	0.82%	$256,000	$2,099	Appeal guide
32	Mississippi	0.81%	$130,000	$1,053	Appeal guide
33	Virginia	0.8%	$339,000	$2,712	Appeal guide
34	Montana	0.74%	$330,000	$2,442	Appeal guide
35	California	0.71%	$659,000	$4,679	Appeal guide
36	New Mexico	0.67%	$213,000	$1,427	Appeal guide
37	Tennessee	0.67%	$230,000	$1,541	Appeal guide
38	Idaho	0.63%	$334,000	$2,104	Appeal guide
39	Arizona	0.62%	$326,000	$2,021	Appeal guide
40	Arkansas	0.62%	$142,000	$880	Appeal guide
41	South Carolina	0.57%	$208,000	$1,186	Appeal guide
42	West Virginia	0.57%	$128,000	$730	Appeal guide
43	District of Columbia	0.56%	$635,000	$3,556	Appeal guide
44	Wyoming	0.56%	$249,000	$1,394	Appeal guide
45	Louisiana	0.55%	$174,000	$957	Appeal guide
46	Nevada	0.55%	$367,000	$2,019	Appeal guide
47	Delaware	0.53%	$299,000	$1,585	Appeal guide
48	Utah	0.52%	$408,000	$2,122	Appeal guide
49	Colorado	0.51%	$472,000	$2,407	Appeal guide
50	Alabama	0.4%	$157,100	$628	Appeal guide
51	Hawaii	0.28%	$739,000	$2,069	Appeal guide

Source: U.S. Census Bureau ACS, Tax Foundation. Effective rates = median annual tax / median home value. Red highlighting indicates above-national-average rate.

States with the Highest Property Tax Rates

The five states with the highest effective property tax rates are:

New Jersey (2.23%) — median annual tax of $8,809 on a $395,000 home. How to appeal
Connecticut (2.15%) — median annual tax of $6,687 on a $311,000 home. How to appeal
New Hampshire (2.09%) — median annual tax of $7,085 on a $339,000 home. How to appeal
Illinois (2.07%) — median annual tax of $4,947 on a $239,000 home. How to appeal
Vermont (1.83%) — median annual tax of $4,978 on a $272,000 home. How to appeal

States with the Lowest Property Tax Rates

The five states with the lowest effective property tax rates are:

Hawaii (0.28%) — median annual tax of $2,069 on a $739,000 home.
Alabama (0.4%) — median annual tax of $628 on a $157,100 home.
Colorado (0.51%) — median annual tax of $2,407 on a $472,000 home.
Utah (0.52%) — median annual tax of $2,122 on a $408,000 home.
Delaware (0.53%) — median annual tax of $1,585 on a $299,000 home.

What to Do If You Are Paying Above the Median

If your property tax bill is significantly above the median for your state, it does not necessarily mean you are overassessed — your home may simply be worth more than the state median. The key question is whether your assessed value accurately reflects your home's actual market value.

Signs your home may be overassessed:

Your assessed value increased more than local market prices
Similar homes in your neighborhood sold for less than your assessment
Your home has condition issues not reflected in the assessment
There are errors in your property record (wrong square footage, extra rooms, etc.)

Check Your Assessment in 2 Minutes

Enter your address to see if your property is overassessed compared to recent comparable sales. If it is, we will generate an evidence packet with comparable sales data, a filing guide for your county, and a cover letter — all for $49.

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Related Resources

Frequently Asked Questions

What is the average property tax rate in the US in 2026?

The national average effective property tax rate in 2026 is approximately 1.1%, based on U.S. Census Bureau data. This translates to a median annual tax bill of $2,690 nationally.

Which state has the highest property tax rate?

New Jersey has the highest effective property tax rate at 2.23%, with a median annual tax bill of $8,809.

Which state has the lowest property tax rate?

Hawaii has the lowest effective property tax rate at 0.28%, with a median annual tax bill of $2,069.

Can I appeal my property taxes if I pay above the average?

Yes, but paying above the state average alone is not grounds for an appeal. You need to show that your assessed value exceeds your home's actual market value based on comparable sales. Every state allows appeals, and success rates range from 40-70%.

How is effective property tax rate calculated?

The effective property tax rate is calculated by dividing the annual property tax paid by the home's market value. For example, if you pay $3,000/year in taxes on a $300,000 home, your effective rate is 1.0%. This differs from the nominal millage rate because it accounts for exemptions and assessment ratios.