The States With The Highest Property Taxes

Home ownership has long been seen as a practical way of building wealth in the United States. Rather than cutting a check to a landlord every month, paying down a mortgage builds equity and functions much like any other investment. Often overlooked in this equation, however, is a homeowner’s obligation to pay property taxes — an obligation that remains, even after a mortgage is fully paid off.

24/7 Wall St. Key Points:

• Property taxes are an inevitable expense associated with homeownership. 
• But both property tax rates and home values vary across the country, and in some places, annual property tax bills are thousands of dollars higher than they are in others.
• Also: 2 Dividend Legends To Hold Forever

Property taxes are the lifeblood of local communities across the United States. Typically levied at the local level, by cities, counties, or school districts, property taxes — specifically those on land and residential structures — are used to fund public services such as schools, law enforcement, and infrastructure maintenance and development.

Nationwide, property taxes accounted for 27.4% of all state and local tax revenue in fiscal 2022, more than any other tax, including sales and income taxes. In some states, state and local governments derive over 40% of their total tax revenue from property taxes.

Generally, property taxes are levied as a specific percentage of a given property’s assessed value — and exactly how much Americans pay each year depends both on their local property tax rate and the value of their property. For example, if a single family home is valued at $400,000 in a given year, and the local property tax rate is 1%, the property tax bill would come to $4,000. (Here is a look at the states where people pay the most of their income on taxes.)

Using data from the Tax Foundation, an independent nonprofit tax policy research organization, 24/7 Wall St. identified the states where people pay the most in property taxes. States are ranked by the effective property tax rate, or the average amount paid in property taxes as a share of property value in fiscal 2023. All supplemental tax data are also from the Tax Foundation, while data on median household income and median home value are from the U.S. Census Bureau’s 2023 American Community Survey.

Across the 50 states, effective property tax rates range from less than 0.25% of home values, to over 2%. For context, the average effective property tax rate nationwide stands at 0.93%.

It is important to note that a low effective property tax rate in a given state does not necessarily mean a low annual tax bill. Hawaii, for example, has the lowest effective property tax rate in the country. However, because the state also has the highest median home value, at $1,602, per capita property tax collections are higher in Hawaii than in 19 other states. Similarly, even though Ohio has a relatively high effective property tax rate, below-average home values in the state mean Ohio homeowners pay less per year in property taxes than those in most other states. (Here is a look at the U.S. cities with the least affordable housing markets.)

These are the states with the highest (and lowest) effective property tax rates.

Why It Matters

Property taxes are the leading source of revenue for local governments across the country. Typically levied as a percentage of assessed home values, exactly how much Americans pay in property taxes depends not only on the local property tax rate, but also on the value of their home. And in some parts of the country, homeowners pay thousands of dollars more in property taxes every year than in others.

50. Hawaii

• Effective property tax rate in fiscal 2023: 0.24% of home value
• Property tax collections per capita in fiscal 2022: $1,602 (20th lowest of 50 states)
• Median home value: $859,800 (the highest of 50 states)
• Median household income: $95,322 (6th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 16.9% (5th lowest of 50 states)

49. Alabama

• Effective property tax rate in fiscal 2023: 0.34% of home value
• Property tax collections per capita in fiscal 2022: $698 (the lowest of 50 states)
• Median home value: $250,800 (11th lowest of 50 states)
• Median household income: $62,212 (7th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 14.8% (2nd lowest of 50 states)

48. Colorado

• Effective property tax rate in fiscal 2023: 0.39% of home value
• Property tax collections per capita in fiscal 2022: $2,126 (15th highest of 50 states)
• Median home value: $563,000 (5th highest of 50 states)
• Median household income: $92,911 (9th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 29.3% (20th highest of 50 states)

47. Louisiana

• Effective property tax rate in fiscal 2023: 0.42% of home value
• Property tax collections per capita in fiscal 2022: $1,034 (6th lowest of 50 states)
• Median home value: $246,200 (9th lowest of 50 states)
• Median household income: $58,229 (3rd lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 18.8% (8th lowest of 50 states)

46. West Virginia

• Effective property tax rate in fiscal 2023: 0.50% of home value
• Property tax collections per capita in fiscal 2022: $1,103 (8th lowest of 50 states)
• Median home value: $198,100 (the lowest of 50 states)
• Median household income: $55,948 (2nd lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 20.7% (12th lowest of 50 states)

45. Utah

• Effective property tax rate in fiscal 2023: 0.50% of home value
• Property tax collections per capita in fiscal 2022: $1,354 (16th lowest of 50 states)
• Median home value: $527,100 (6th highest of 50 states)
• Median household income: $93,421 (8th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 21.6% (14th lowest of 50 states)

44. Idaho

• Effective property tax rate in fiscal 2023: 0.51% of home value
• Property tax collections per capita in fiscal 2022: $1,085 (7th lowest of 50 states)
• Median home value: $437,800 (12th highest of 50 states)
• Median household income: $74,942 (24th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 21.0% (13th lowest of 50 states)

43. Delaware

• Effective property tax rate in fiscal 2023: 0.51% of home value
• Property tax collections per capita in fiscal 2022: $1,164 (10th lowest of 50 states)
• Median home value: $366,500 (21st highest of 50 states)
• Median household income: $81,361 (16th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 15.1% (3rd lowest of 50 states)

42. Tennessee

• Effective property tax rate in fiscal 2023: 0.51% of home value
• Property tax collections per capita in fiscal 2022: $976 (4th lowest of 50 states)
• Median home value: $338,200 (24th lowest of 50 states)
• Median household income: $67,631 (9th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 20.6% (10th lowest of 50 states)

41. Nevada

• Effective property tax rate in fiscal 2023: 0.53% of home value
• Property tax collections per capita in fiscal 2022: $1,351 (15th lowest of 50 states)
• Median home value: $452,200 (9th highest of 50 states)
• Median household income: $76,364 (22nd highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 21.8% (15th lowest of 50 states)

40. Arkansas

• Effective property tax rate in fiscal 2023: 0.53% of home value
• Property tax collections per capita in fiscal 2022: $863 (2nd lowest of 50 states)
• Median home value: $225,600 (3rd lowest of 50 states)
• Median household income: $58,700 (4th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 16.3% (4th lowest of 50 states)

39. South Carolina

• Effective property tax rate in fiscal 2023: 0.54% of home value
• Property tax collections per capita in fiscal 2022: $1,444 (18th lowest of 50 states)
• Median home value: $306,900 (21st lowest of 50 states)
• Median household income: $67,804 (11th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 28.6% (21st highest of 50 states)

38. Wyoming

• Effective property tax rate in fiscal 2023: 0.56% of home value
• Property tax collections per capita in fiscal 2022: $2,152 (13th highest of 50 states)
• Median home value: $320,100 (22nd lowest of 50 states)
• Median household income: $72,415 (20th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 34.4% (9th highest of 50 states)

37. Arizona

• Effective property tax rate in fiscal 2023: 0.58% of home value
• Property tax collections per capita in fiscal 2022: $1,266 (14th lowest of 50 states)
• Median home value: $439,600 (11th highest of 50 states)
• Median household income: $77,315 (20th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 24.2% (20th lowest of 50 states)

36. New Mexico

• Effective property tax rate in fiscal 2023: 0.60% of home value
• Property tax collections per capita in fiscal 2022: $1,105 (9th lowest of 50 states)
• Median home value: $290,200 (19th lowest of 50 states)
• Median household income: $62,268 (8th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 14.3% (the lowest of 50 states)

35. Oklahoma

• Effective property tax rate in fiscal 2023: 0.65% of home value
• Property tax collections per capita in fiscal 2022: $942 (3rd lowest of 50 states)
• Median home value: $234,900 (5th lowest of 50 states)
• Median household income: $62,138 (6th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 18.7% (7th lowest of 50 states)

34. Indiana

• Effective property tax rate in fiscal 2023: 0.67% of home value
• Property tax collections per capita in fiscal 2022: $1,259 (13th lowest of 50 states)
• Median home value: $238,600 (7th lowest of 50 states)
• Median household income: $69,477 (14th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 21.8% (16th lowest of 50 states)

33. Virginia

• Effective property tax rate in fiscal 2023: 0.67% of home value
• Property tax collections per capita in fiscal 2022: $2,019 (16th highest of 50 states)
• Median home value: $410,500 (17th highest of 50 states)
• Median household income: $89,931 (11th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 29.5% (19th highest of 50 states)

32. North Carolina

• Effective property tax rate in fiscal 2023: 0.70% of home value
• Property tax collections per capita in fiscal 2022: $1,176 (11th lowest of 50 states)
• Median home value: $343,400 (24th highest of 50 states)
• Median household income: $70,804 (17th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 22.0% (17th lowest of 50 states)

31. California

• Effective property tax rate in fiscal 2023: 0.71% of home value
• Property tax collections per capita in fiscal 2022: $2,131 (14th highest of 50 states)
• Median home value: $745,300 (2nd highest of 50 states)
• Median household income: $95,521 (5th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 20.7% (11th lowest of 50 states)

30. Kentucky

• Effective property tax rate in fiscal 2023: 0.72% of home value
• Property tax collections per capita in fiscal 2022: $1,020 (5th lowest of 50 states)
• Median home value: $238,900 (8th lowest of 50 states)
• Median household income: $61,118 (5th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 19.5% (9th lowest of 50 states)

29. Florida

• Effective property tax rate in fiscal 2023: 0.73% of home value
• Property tax collections per capita in fiscal 2022: $1,686 (23rd lowest of 50 states)
• Median home value: $404,300 (18th highest of 50 states)
• Median household income: $73,311 (21st lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 34.3% (10th highest of 50 states)

28. Missouri

• Effective property tax rate in fiscal 2023: 0.73% of home value
• Property tax collections per capita in fiscal 2022: $1,363 (17th lowest of 50 states)
• Median home value: $252,100 (12th lowest of 50 states)
• Median household income: $68,545 (12th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 27.4% (25th highest of 50 states)

27. Mississippi

• Effective property tax rate in fiscal 2023: 0.74% of home value
• Property tax collections per capita in fiscal 2022: $1,225 (12th lowest of 50 states)
• Median home value: $211,000 (2nd lowest of 50 states)
• Median household income: $54,203 (the lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 25.7% (21st lowest of 50 states)

26. Washington

• Effective property tax rate in fiscal 2023: 0.76% of home value
• Property tax collections per capita in fiscal 2022: $1,999 (17th highest of 50 states)
• Median home value: $597,700 (3rd highest of 50 states)
• Median household income: $94,605 (7th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 26.9% (24th lowest of 50 states)

25. Montana

• Effective property tax rate in fiscal 2023: 0.77% of home value
• Property tax collections per capita in fiscal 2022: $1,937 (19th highest of 50 states)
• Median home value: $425,400 (15th highest of 50 states)
• Median household income: $70,804 (17th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 33.1% (13th highest of 50 states)

24. Alaska

• Effective property tax rate in fiscal 2023: 0.77% of home value
• Property tax collections per capita in fiscal 2022: $2,386 (10th highest of 50 states)
• Median home value: $368,600 (20th highest of 50 states)
• Median household income: $86,631 (12th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 34.5% (8th highest of 50 states)

23. Oregon

• Effective property tax rate in fiscal 2023: 0.78% of home value
• Property tax collections per capita in fiscal 2022: $1,884 (21st highest of 50 states)
• Median home value: $509,100 (7th highest of 50 states)
• Median household income: $80,160 (19th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 27.2% (25th lowest of 50 states)

22. North Dakota

• Effective property tax rate in fiscal 2023: 0.89% of home value
• Property tax collections per capita in fiscal 2022: $1,620 (22nd lowest of 50 states)
• Median home value: $274,100 (15th lowest of 50 states)
• Median household income: $76,525 (21st highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 18.1% (6th lowest of 50 states)

21. Georgia

• Effective property tax rate in fiscal 2023: 0.90% of home value
• Property tax collections per capita in fiscal 2022: $1,469 (19th lowest of 50 states)
• Median home value: $348,700 (22nd highest of 50 states)
• Median household income: $74,632 (25th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 27.9% (24th highest of 50 states)

20. Maryland

• Effective property tax rate in fiscal 2023: 0.96% of home value
• Property tax collections per capita in fiscal 2022: $1,866 (22nd highest of 50 states)
• Median home value: $428,100 (14th highest of 50 states)
• Median household income: $98,678 (3rd highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 23.2% (18th lowest of 50 states)

19. Minnesota

• Effective property tax rate in fiscal 2023: 0.97% of home value
• Property tax collections per capita in fiscal 2022: $1,914 (20th highest of 50 states)
• Median home value: $339,600 (25th lowest of 50 states)
• Median household income: $85,086 (13th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 23.8% (19th lowest of 50 states)

18. Massachusetts

• Effective property tax rate in fiscal 2023: 1.06% of home value
• Property tax collections per capita in fiscal 2022: $2,986 (6th highest of 50 states)
• Median home value: $581,900 (4th highest of 50 states)
• Median household income: $99,858 (the highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 32.0% (15th highest of 50 states)

17. South Dakota

• Effective property tax rate in fiscal 2023: 1.09% of home value
• Property tax collections per capita in fiscal 2022: $1,695 (24th lowest of 50 states)
• Median home value: $293,800 (20th lowest of 50 states)
• Median household income: $71,810 (19th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 33.3% (12th highest of 50 states)

16. Maine

• Effective property tax rate in fiscal 2023: 1.11% of home value
• Property tax collections per capita in fiscal 2022: $2,565 (8th highest of 50 states)
• Median home value: $334,200 (23rd lowest of 50 states)
• Median household income: $73,733 (22nd lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 35.5% (6th highest of 50 states)

15. Ohio

• Effective property tax rate in fiscal 2023: 1.15% of home value
• Property tax collections per capita in fiscal 2022: $1,614 (21st lowest of 50 states)
• Median home value: $237,700 (6th lowest of 50 states)
• Median household income: $67,769 (10th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 28.1% (23rd highest of 50 states)

14. Michigan

• Effective property tax rate in fiscal 2023: 1.17% of home value
• Property tax collections per capita in fiscal 2022: $1,702 (25th lowest of 50 states)
• Median home value: $256,200 (13th lowest of 50 states)
• Median household income: $69,183 (13th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 32.2% (14th highest of 50 states)

13. Rhode Island

• Effective property tax rate in fiscal 2023: 1.25% of home value
• Property tax collections per capita in fiscal 2022: $2,523 (9th highest of 50 states)
• Median home value: $425,300 (16th highest of 50 states)
• Median household income: $84,972 (14th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 36.0% (5th highest of 50 states)

12. Texas

• Effective property tax rate in fiscal 2023: 1.28% of home value
• Property tax collections per capita in fiscal 2022: $2,248 (12th highest of 50 states)
• Median home value: $341,300 (25th highest of 50 states)
• Median household income: $75,780 (23rd highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 41.1% (2nd highest of 50 states)

11. Nebraska

• Effective property tax rate in fiscal 2023: 1.28% of home value
• Property tax collections per capita in fiscal 2022: $2,271 (11th highest of 50 states)
• Median home value: $264,900 (14th lowest of 50 states)
• Median household income: $74,590 (24th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 33.7% (11th highest of 50 states)

10. Pennsylvania

• Effective property tax rate in fiscal 2023: 1.32% of home value
• Property tax collections per capita in fiscal 2022: $1,715 (25th highest of 50 states)
• Median home value: $283,300 (17th lowest of 50 states)
• Median household income: $73,824 (23rd lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 25.8% (22nd lowest of 50 states)

9. Iowa

• Effective property tax rate in fiscal 2023: 1.34% of home value
• Property tax collections per capita in fiscal 2022: $1,998 (18th highest of 50 states)
• Median home value: $227,000 (4th lowest of 50 states)
• Median household income: $71,433 (18th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 31.3% (17th highest of 50 states)

8. Wisconsin

• Effective property tax rate in fiscal 2023: 1.44% of home value
• Property tax collections per capita in fiscal 2022: $1,831 (23rd highest of 50 states)
• Median home value: $283,400 (18th lowest of 50 states)
• Median household income: $74,631 (25th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 30.8% (18th highest of 50 states)

7. Kansas

• Effective property tax rate in fiscal 2023: 1.55% of home value
• Property tax collections per capita in fiscal 2022: $1,801 (24th highest of 50 states)
• Median home value: $249,800 (10th lowest of 50 states)
• Median household income: $70,333 (15th lowest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 28.5% (22nd highest of 50 states)

6. Vermont

• Effective property tax rate in fiscal 2023: 1.72% of home value
• Property tax collections per capita in fiscal 2022: $3,181 (5th highest of 50 states)
• Median home value: $344,900 (23rd highest of 50 states)
• Median household income: $81,211 (17th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 39.0% (3rd highest of 50 states)

5. Illinois

• Effective property tax rate in fiscal 2023: 1.83% of home value
• Property tax collections per capita in fiscal 2022: $2,595 (7th highest of 50 states)
• Median home value: $283,200 (16th lowest of 50 states)
• Median household income: $80,306 (18th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 31.8% (16th highest of 50 states)

4. New Hampshire

• Effective property tax rate in fiscal 2023: 1.85% of home value
• Property tax collections per capita in fiscal 2022: $3,660 (the highest of 50 states)
• Median home value: $430,000 (13th highest of 50 states)
• Median household income: $96,838 (4th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 61.5% (the highest of 50 states)

3. Connecticut

• Effective property tax rate in fiscal 2023: 1.86% of home value
• Property tax collections per capita in fiscal 2022: $3,361 (3rd highest of 50 states)
• Median home value: $374,700 (19th highest of 50 states)
• Median household income: $91,665 (10th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 34.6% (7th highest of 50 states)

2. New York

• Effective property tax rate in fiscal 2023: 2.05% of home value
• Property tax collections per capita in fiscal 2022: $3,302 (4th highest of 50 states)
• Median home value: $452,100 (10th highest of 50 states)
• Median household income: $82,095 (15th highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 26.0% (23rd lowest of 50 states)

1. New Jersey

• Effective property tax rate in fiscal 2023: 2.21% of home value
• Property tax collections per capita in fiscal 2022: $3,622 (2nd highest of 50 states)
• Median home value: $474,700 (8th highest of 50 states)
• Median household income: $99,781 (2nd highest of 50 states)
• Property tax as a share of state and local tax revenue in fiscal 2022: 38.7% (4th highest of 50 states)

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