U.S. States by Effective Property Tax Rate Using
U.S. States by Effective Property Tax Rate Using the Latest Tax Foundation Table
Effective property tax rate compares real estate taxes paid with the value of owner-occupied housing. The ranking below uses Tax Foundation’s 2026 property tax table, which is based on 2024 American Community Survey housing and tax data. It should be read as the latest comparable state-level benchmark, not as an actual 2026 tax-year measurement.
Property tax rates matter because they shape homeowner carrying costs, local school funding, municipal budgets and housing affordability. A low percentage rate does not always mean a low bill: high-value housing markets can produce large annual payments even with a modest rate, while lower-value markets can show high effective rates with smaller dollar bills.
Overview: what the effective rate reveals
Effective property tax rates show how much owner-occupied housing value is converted into annual property tax revenue. New Jersey and Illinois sit at the top because homeowners there pay the highest statewide effective rates in the Tax Foundation table. Connecticut, Vermont and New Hampshire follow, reflecting the broader Northeast pattern of strong local reliance on property taxes for schools, counties and municipalities.
The middle of the ranking is where statewide averages need the most caution. Massachusetts, Minnesota and South Dakota are near 1.00%, while Oregon, Georgia, Oklahoma, Florida and Virginia sit around 0.78% to 0.81%. In this range, county assessments, school levies, municipal rates and homeowner exemptions can move an actual bill far above or below the state average.
Low-rate states are not automatically low-cost states for homeowners. Hawaii has the lowest effective rate, followed by Alabama, Utah, Arizona, South Carolina, Idaho, Colorado and Nevada, but home values still matter. A low rate applied to an expensive property can produce a larger bill than a higher rate applied to a lower-value home.
Top 20 states by effective property tax rate
The Top 20 is dominated by the Northeast and Midwest, with Texas as the most prominent Southern exception. These are not nominal millage rates; they are effective rates, meaning estimated taxes paid divided by owner-occupied housing value.
| Rank | State | Effective rate | Tax per $100k value |
|---|---|---|---|
| 1 | New Jersey | 1.88% | $1,880 |
| 2 | Illinois | 1.88% | $1,880 |
| 3 | Connecticut | 1.54% | $1,540 |
| 4 | Vermont | 1.51% | $1,510 |
| 5 | New Hampshire | 1.50% | $1,500 |
| 6 | Nebraska | 1.44% | $1,440 |
| 7 | Texas | 1.40% | $1,400 |
| 8 | Ohio | 1.36% | $1,360 |
| 9 | Iowa | 1.33% | $1,330 |
| 10 | Wisconsin | 1.32% | $1,320 |
| 11 | New York | 1.30% | $1,300 |
| 12 | Pennsylvania | 1.26% | $1,260 |
| 13 | Kansas | 1.21% | $1,210 |
| 14 | Michigan | 1.19% | $1,190 |
| 15 | Rhode Island | 1.12% | $1,120 |
| 16 | Massachusetts | 1.00% | $1,000 |
| 17 | Minnesota | 1.00% | $1,000 |
| 18 | South Dakota | 1.00% | $1,000 |
| 19 | Maine | 0.98% | $980 |
| 20 | Alaska | 0.94% | $940 |
Top 20 table based on 2024 ACS-derived effective rates in Tax Foundation’s 2026 table. Dollar amounts per $100,000 are calculated directly from the percentage rate.
Chart: Top 10 property tax rates by state
The visual gap after the first two states is important. New Jersey and Illinois sit at 1.88%, while Connecticut is already lower at 1.54%. The upper tier then compresses between roughly 1.32% and 1.51%, showing that the very top is led by two clear outliers.
Values shown: 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%.
Methodology
The ranking uses effective property tax rates on owner-occupied housing. The rate is calculated as real estate taxes paid divided by owner-occupied housing value, then expressed as a percentage. This is different from a statutory millage rate because it reflects what homeowners actually pay relative to home value after assessment practices, exemptions and local tax structures are taken into account.
The data year is 2024, the latest ACS-based year used in Tax Foundation’s 2026 property tax release available at the time of update. The figures are not a 2026 actual tax-year dataset and not a forecast. Rows cover the 50 U.S. states; the District of Columbia is not included in the state ranking table.
Values are rounded to two decimal places in percentage form. The “tax per $100k value” column is a derived illustration: effective rate multiplied by $100,000 of owner-occupied housing value. It helps readers compare rates in dollar terms, but it is not a substitute for a local property tax bill because actual bills depend on county, city, school district, assessment ratio, exemptions, caps and special levies.
Domestic comparability still has limits: states differ in how property is assessed, how often values are reassessed, whether homeowners receive exemptions, and how heavily local governments rely on real estate taxes compared with income, sales or severance taxes. County-level and school-district rates can diverge substantially from the statewide average.
Full ranking: all 50 states by effective property tax rate
Search, filter by Census region, or change the number of visible rows.
Showing all 50 states.
| Rank | State | Effective rate | Tax per $100k value |
|---|---|---|---|
| 1 | New Jersey | 1.88% | $1,880 |
| 2 | Illinois | 1.88% | $1,880 |
| 3 | Connecticut | 1.54% | $1,540 |
| 4 | Vermont | 1.51% | $1,510 |
| 5 | New Hampshire | 1.50% | $1,500 |
| 6 | Nebraska | 1.44% | $1,440 |
| 7 | Texas | 1.40% | $1,400 |
| 8 | Ohio | 1.36% | $1,360 |
| 9 | Iowa | 1.33% | $1,330 |
| 10 | Wisconsin | 1.32% | $1,320 |
| 11 | New York | 1.30% | $1,300 |
| 12 | Pennsylvania | 1.26% | $1,260 |
| 13 | Kansas | 1.21% | $1,210 |
| 14 | Michigan | 1.19% | $1,190 |
| 15 | Rhode Island | 1.12% | $1,120 |
| 16 | Massachusetts | 1.00% | $1,000 |
| 17 | Minnesota | 1.00% | $1,000 |
| 18 | South Dakota | 1.00% | $1,000 |
| 19 | Maine | 0.98% | $980 |
| 20 | Alaska | 0.94% | $940 |
| 21 | Maryland | 0.92% | $920 |
| 22 | North Dakota | 0.92% | $920 |
| 23 | Missouri | 0.89% | $890 |
| 24 | Oregon | 0.81% | $810 |
| 25 | Georgia | 0.79% | $790 |
| 26 | Oklahoma | 0.79% | $790 |
| 27 | Florida | 0.78% | $780 |
| 28 | Virginia | 0.78% | $780 |
| 29 | Indiana | 0.76% | $760 |
| 30 | Washington | 0.75% | $750 |
| 31 | Kentucky | 0.74% | $740 |
| 32 | California | 0.70% | $700 |
| 33 | North Carolina | 0.66% | $660 |
| 34 | New Mexico | 0.63% | $630 |
| 35 | Montana | 0.61% | $610 |
| 36 | Mississippi | 0.58% | $580 |
| 37 | Arkansas | 0.56% | $560 |
| 38 | Louisiana | 0.55% | $550 |
| 39 | Delaware | 0.54% | $540 |
| 40 | Wyoming | 0.53% | $530 |
| 41 | Tennessee | 0.52% | $520 |
| 42 | West Virginia | 0.51% | $510 |
| 43 | Nevada | 0.50% | $500 |
| 44 | Colorado | 0.50% | $500 |
| 45 | Idaho | 0.50% | $500 |
| 46 | South Carolina | 0.49% | $490 |
| 47 | Arizona | 0.48% | $480 |
| 48 | Utah | 0.48% | $480 |
| 49 | Alabama | 0.37% | $370 |
| 50 | Hawaii | 0.29% | $290 |
Table covers all 50 U.S. states. Source values: Tax Foundation 2026 property tax table using 2024 American Community Survey housing and tax data. Metric: effective property tax rate on owner-occupied housing. Information updated: May 3, 2026.
Insights from the ranking
- High rates often signal local-revenue dependence. States near the top tend to rely heavily on property taxes for schools and local government services, so the rate is part of a broader fiscal structure rather than a standalone policy choice.
- Regional clustering is visible but not absolute. The Northeast and Midwest dominate the high-rate group, yet Texas shows that a Southern state can also rank high when property taxes carry a large share of local public finance.
- Low-rate states are not automatically cheap for homeowners. Hawaii and California illustrate the difference between rate and bill: lower effective rates can still translate into large dollar costs when home values are high.
- Middle-ranked states require local checking. A statewide average around 0.75% to 1.00% may conceal much higher or lower rates at the county, city or school-district level.
What the ranking means for readers
For homeowners, the effective property tax rate is a practical ownership-cost signal. A buyer comparing two states should not stop at mortgage rates and home prices; annual property tax can materially change the monthly cost of ownership. A one-point difference in effective rate equals about $1,000 per year for every $100,000 of home value.
For renters, property taxes still matter because landlords often pass part of the cost through rent over time. For local residents, the rate can also indicate how schools, roads, emergency services and county operations are funded. In states with low income taxes or no state income tax, property taxes may carry more fiscal weight.
For investors and relocation planners, the ranking is a starting point rather than a final estimate. Local assessment caps, homestead exemptions, senior relief, veteran exemptions and school district levies can change the actual tax bill more than the statewide average suggests.
FAQ
Is this a true 2026 property tax rate ranking?
No. It is based on the latest available 2024 ACS-derived effective rate data in the 2026 Tax Foundation table. That distinction matters because property tax systems update through local assessments, levy decisions and exemption changes, while national comparable datasets arrive with a delay.
What does “effective property tax rate” mean?
It means estimated real estate taxes paid as a percentage of owner-occupied housing value. It is designed for comparison across states and is not the same as a local millage rate printed on an individual tax bill.
Why can a low-rate state still have high tax bills?
The bill depends on both the rate and the home value. A 0.50% rate on an $800,000 home produces a larger annual bill than a 1.00% rate on a $300,000 home.
Why are New Jersey and Illinois at the top?
Both states rely heavily on local property taxation, especially for schools and municipal services. The statewide effective rate reflects that structure, but individual bills still vary by municipality, county and exemptions.
Should buyers use this table to estimate their exact bill?
No. The table is useful for comparing state-level patterns, but a real estimate requires the property address, assessed value, local tax districts, exemption eligibility and recent reassessment rules.
Sources
-
Tax Foundation — Property Taxes by State and County, 2026. Primary source for the 50-state effective property tax rate values. The table reports property taxes paid as a percentage of owner-occupied housing value.
https://taxfoundation.org/data/all/state/property-taxes-by-state-county/ -
U.S. Census Bureau — 2024 American Community Survey data release. Release page for the 2024 ACS data behind the table.
https://www.census.gov/programs-surveys/acs/news/data-releases/2024/release.html -
U.S. Census Bureau — ACS Table B25090. Aggregate real estate taxes paid, one of the ACS inputs for effective property tax calculations.
https://data.census.gov/table/ACSDT1Y2024.B25090?q=property%20taxes -
U.S. Census Bureau — ACS owner-occupied housing value tables. Housing value data used to relate real estate taxes paid to owner-occupied home value.
https://data.census.gov/
