Rob Hartley
Founder, AppealDesk · February 28, 2026
Average Property Taxes by State 2026: Complete Rankings & What You Actually Pay
Updated March 2026
Property taxes vary dramatically across the United States, with some homeowners paying five times more than others for similar homes. This comprehensive guide shows actual tax rates and average bills for all 50 states in 2026.
Quick Stats: The National Picture
- National average effective rate: 1.03%
- National median property tax bill: $3,292
- Highest rate: New Jersey (2.21%)
- Lowest rate: Hawaii (0.32%)
- Biggest bills: New Jersey, Connecticut, New York
- Smallest bills: Alabama, West Virginia, Louisiana
How We Calculate These Numbers
Effective Tax Rate = Annual Property Tax ÷ Home Value
This is the only fair way to compare states, since home values vary so much. A 1% rate on a $500,000 home ($5,000) is the same burden as 1% on a $200,000 home ($2,000).
Complete State Rankings: 2026 Property Tax Rates
Top 10 Highest Property Tax States
| Rank | State | Effective Rate | Avg Annual Bill | Median Home Value |
|---|---|---|---|---|
| 1 | New Jersey | 2.21% | $9,284 | $420,000 |
| 2 | Illinois | 2.05% | $5,924 | $289,000 |
| 3 | Connecticut | 1.96% | $7,644 | $390,000 |
| 4 | New Hampshire | 1.93% | $7,332 | $380,000 |
| 5 | Vermont | 1.83% | $5,856 | $320,000 |
| 6 | Texas | 1.81% | $5,248 | $290,000 |
| 7 | Wisconsin | 1.73% | $4,152 | $240,000 |
| 8 | New York | 1.69% | $6,928 | $410,000 |
| 9 | Nebraska | 1.65% | $3,465 | $210,000 |
| 10 | Iowa | 1.52% | $2,888 | $190,000 |
Why these states are highest:
- Heavy reliance on property taxes for revenue
- High local government costs
- Strong public services and schools
- Limited state income tax (Texas, New Hampshire)
Top 10 Lowest Property Tax States
| Rank | State | Effective Rate | Avg Annual Bill | Median Home Value |
|---|---|---|---|---|
| 50 | Hawaii | 0.32% | $2,080 | $650,000 |
| 49 | Alabama | 0.40% | $1,000 | $250,000 |
| 48 | Louisiana | 0.51% | $1,326 | $260,000 |
| 47 | West Virginia | 0.55% | $990 | $180,000 |
| 46 | Delaware | 0.58% | $2,088 | $360,000 |
| 45 | South Carolina | 0.59% | $1,888 | $320,000 |
| 44 | Utah | 0.60% | $2,520 | $420,000 |
| 43 | Colorado | 0.60% | $2,700 | $450,000 |
| 42 | Nevada | 0.61% | $2,318 | $380,000 |
| 41 | Idaho | 0.63% | $2,205 | $350,000 |
Why these states are lowest:
- Strong tourism revenue (Hawaii, Nevada)
- Income or sales tax reliance
- Lower property values (West Virginia, Alabama)
- Tax-friendly policies
Complete Rankings: All 50 States
| State | Rate | Annual Bill | State | Rate | Annual Bill |
|---|---|---|---|---|---|
| New Jersey | 2.21% | $9,284 | Missouri | 0.96% | $1,920 |
| Illinois | 2.05% | $5,924 | North Carolina | 0.86% | $2,322 |
| Connecticut | 1.96% | $7,644 | Montana | 0.84% | $2,520 |
| New Hampshire | 1.93% | $7,332 | California | 0.75% | $5,625 |
| Vermont | 1.83% | $5,856 | Kentucky | 0.83% | $1,660 |
| Texas | 1.81% | $5,248 | Wyoming | 0.61% | $1,830 |
| Wisconsin | 1.73% | $4,152 | Arkansas | 0.64% | $1,216 |
| New York | 1.69% | $6,928 | Tennessee | 0.67% | $1,742 |
| Nebraska | 1.65% | $3,465 | New Mexico | 0.78% | $1,950 |
| Iowa | 1.52% | $2,888 | Mississippi | 0.75% | $1,350 |
| Pennsylvania | 1.49% | $3,725 | Arizona | 0.66% | $2,310 |
| Ohio | 1.48% | $2,664 | Idaho | 0.63% | $2,205 |
| Michigan | 1.44% | $2,736 | Nevada | 0.61% | $2,318 |
| Rhode Island | 1.40% | $5,040 | Colorado | 0.60% | $2,700 |
| Maine | 1.28% | $3,328 | Utah | 0.60% | $2,520 |
| Minnesota | 1.11% | $3,108 | South Carolina | 0.59% | $1,888 |
| Maryland | 1.06% | $4,452 | Delaware | 0.58% | $2,088 |
| Massachusetts | 1.17% | $6,435 | West Virginia | 0.55% | $990 |
| Oregon | 0.93% | $3,720 | Louisiana | 0.51% | $1,326 |
| Kansas | 1.37% | $2,603 | Alabama | 0.40% | $1,000 |
| Florida | 0.91% | $3,185 | Hawaii | 0.32% | $2,080 |
| Georgia | 0.90% | $2,700 | |||
| North Dakota | 1.01% | $2,424 | |||
| South Dakota | 1.17% | $2,574 | |||
| Oklahoma | 0.87% | $1,653 | |||
| Virginia | 0.84% | $3,024 | |||
| Indiana | 0.84% | $1,596 | |||
| Alaska | 0.98% | $3,430 | |||
| Washington | 0.92% | $4,784 |
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Why Your Bill Might Be Higher Than Average
These are state averages. Your actual bill depends on:
1. Local Rates Vary Widely
Example: Texas
- State average: 1.81%
- Austin: 2.15%
- Houston: 2.23%
- Rural counties: 1.2-1.5%
2. Assessment Practices Differ
- Some counties assess at 100% of market
- Others use ratios (assessed at 80% of market)
- Reassessment frequency varies
3. Exemptions Change Everything
- Homestead exemptions
- Senior discounts
- Veteran benefits
- These can cut bills 20-50%
4. Special Districts Add Up
- School districts
- Fire districts
- Water districts
- Can add 0.5-1% to rate
State Spotlight: Understanding the Extremes
Why New Jersey is #1 (Highest)
- Rate: 2.21% average
- Typical bill: $9,284
- Reasons:
- 565 municipalities (overhead costs)
- Excellent schools (expensive)
- High property values
- Limited state aid to towns
Why Hawaii is #50 (Lowest)
- Rate: 0.32% average
- Typical bill: $2,080 (despite high values)
- Reasons:
- Tourism taxes fund government
- State provides most services
- Generous exemptions
- Rate caps in place
The Texas Paradox: No Income Tax, High Property Tax
Texas markets itself as low-tax, but:
- Property tax rank: #6 highest
- Average rate: 1.81%
- Average bill: $5,248
- Growing problem: Rates increasing faster than most states
Without income tax, property taxes fund everything. The burden shifts entirely to homeowners.
Hidden Factors That Affect Your Rate
1. Debt Service
Counties with bond debt charge extra:
- School construction bonds
- Infrastructure improvements
- Parks and recreation
- Can add 0.3-0.5% to rate
2. Voter-Approved Increases
Many states allow override votes:
- Massachusetts: Proposition 2½ overrides
- California: Parcel taxes
- Most states: School levy votes
3. TIF Districts
Tax Increment Financing freezes your rate while values rise:
- Common in urban areas
- Delays tax increases
- Eventually expires (watch out)
4. Phase-Ins
Some states phase in assessment increases:
- Maryland: 3-year phase-in
- Smooths jumps
- But locks in increases
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Cost of Living Context
Low tax rates don't always mean low bills:
California Paradox:
- Rate: 0.75% (low)
- Median home: $750,000
- Typical bill: $5,625 (high)
West Virginia Reality:
- Rate: 0.55% (low)
- Median home: $180,000
- Typical bill: $990 (lowest)
Trends for 2026 and Beyond
Rates Increasing In:
- Texas: Assessments up 15-20% in major cities
- Florida: Post-COVID migration driving values
- Tennessee: Nashville/Memphis seeing spikes
- Arizona: Phoenix assessments soaring
Rates Stable/Declining In:
- Illinois: Reforms capping increases
- New Jersey: Political pressure for relief
- California: Prop 13 protects existing owners
States Adding Exemptions:
- Texas expanded senior exemptions
- Florida considering doubling homestead
- Many states adding veteran benefits
What This Means for You
If You're in a High-Tax State:
- Exemptions are crucial - Use everything available
- Appeals matter more - Higher stakes
- Consider the trade-offs - Services vs costs
- Plan for retirement - Some states freeze senior taxes
If You're in a Low-Tax State:
- Don't get complacent - Still check assessment
- Watch for creep - Rates can increase
- Understand the trade-offs - Lower services?
- Other taxes may be higher - Income, sales
If You're Moving:
- Research actual bills - Not just rates
- Factor total tax burden - All taxes matter
- Check exemption portability - Some transfer
- Time the move - Assessment dates matter
Your Action Items
No matter your state:
- Know your rate - Check your bill
- Compare locally - Neighbors paying less?
- Claim exemptions - Don't leave money behind
- Appeal if needed - High-tax states = bigger savings
The bottom line: Whether you're in New Jersey paying 2.21% or Hawaii paying 0.32%, make sure you're not paying more than your fair share. Even in low-tax states, assessment errors happen.
Every homeowner should review their assessment annually. In high-tax states, the stakes are higher. In low-tax states, errors are often ignored. Either way, you could be overpaying.
Data reflects 2026 tax rates and median home values. Individual experiences vary based on local rates, exemptions, and assessment practices. Always verify current rates with your local tax authority.