States With the Highest Property Taxes (2026)
Published: March 12, 2026
Property taxes are one of the largest recurring costs of homeownership, but the burden varies sharply across the United States. This study compares effective property tax rates across all 50 states using a state-level measure of annual property tax paid relative to owner-occupied housing value. The result is a clearer view of where homeowners face the heaviest ongoing property tax burden. Illinois has the highest effective property tax rate in this ranking at 1.79%, while Hawaii has the lowest at 0.31%.
Key takeaways
- Illinois ranks first in this study with the highest effective property tax rate at 1.79%, followed by New Jersey at 1.68%.
- The highest-tax states are concentrated in the Midwest and Northeast, where local governments often rely more heavily on property tax revenue.
- Hawaii has the lowest effective property tax rate in this ranking at 0.31%, showing how widely state-level tax burdens can differ.
- Even when home prices are similar, differences in effective property tax rate can materially change the real cost of owning a home over time.
- Illinois has the highest effective property tax rate in this study at 1.79%, while Hawaii has the lowest at 0.31%, a gap of nearly six times.
Top 10 highest-tax states
Below are the 10 states with the highest effective property tax rates in this study. This section is intended as a quick summary of the states at the top of the ranking, while the full 50-state table further down provides the complete dataset.
Illinois
Illinois ranks first in this study and has the highest effective property tax rate in the country.
New Jersey
New Jersey remains one of the most property-tax-heavy states relative to owner-occupied housing value.
Nebraska
Nebraska continues to post a high effective rate compared with most of the country.
Connecticut
Connecticut remains near the top of the ranking, reflecting a relatively heavy recurring property tax burden.
New Hampshire
New Hampshire ranks high in this study despite lacking a broad-based state income tax structure like some peers.
Ohio
Ohio enters the top 10 with a materially higher effective rate than most states nationwide.
Iowa
Iowa remains in the upper tier of effective property tax burden in this ranking.
Texas
Texas has no state income tax, but local property taxes can still create a sizable ongoing housing cost.
New York
New York rounds out the top 10 and remains above the large majority of states in effective property tax burden.
Full ranking: effective property tax rate by state
This full ranking shows all 50 states from highest to lowest effective property tax rate based on the source dataset used for this study.
| Rank | State | Effective Property Tax Rate |
|---|---|---|
| 1 | Illinois | 1.79% |
| 2 | New Jersey | 1.68% |
| 3 | Vermont | 1.40% |
| 4 | Nebraska | 1.38% |
| 5 | Connecticut | 1.36% |
| 6 | New Hampshire | 1.35% |
| 7 | Ohio | 1.28% |
| 8 | Iowa | 1.25% |
| 9 | Texas | 1.25% |
| 10 | New York | 1.23% |
| 11 | Kansas | 1.20% |
| 12 | Wisconsin | 1.19% |
| 13 | Pennsylvania | 1.14% |
| 14 | Michigan | 1.13% |
| 15 | South Dakota | 1.00% |
| 16 | Rhode Island | 1.00% |
| 17 | Minnesota | 0.99% |
| 18 | Massachusetts | 0.95% |
| 19 | North Dakota | 0.94% |
| 20 | Maine | 0.90% |
| 21 | Maryland | 0.90% |
| 22 | Alaska | 0.90% |
| 23 | Missouri | 0.85% |
| 24 | Oregon | 0.79% |
| 25 | Oklahoma | 0.78% |
| 26 | Georgia | 0.77% |
| 27 | Florida | 0.76% |
| 28 | Indiana | 0.76% |
| 29 | Virginia | 0.75% |
| 30 | Washington | 0.74% |
| 31 | Kentucky | 0.72% |
| 32 | California | 0.69% |
| 33 | North Carolina | 0.62% |
| 34 | New Mexico | 0.61% |
| 35 | Montana | 0.59% |
| 36 | Wyoming | 0.58% |
| 37 | Louisiana | 0.56% |
| 38 | Mississippi | 0.54% |
| 39 | Arkansas | 0.54% |
| 40 | Colorado | 0.52% |
| 41 | Delaware | 0.51% |
| 42 | Nevada | 0.50% |
| 43 | West Virginia | 0.48% |
| 44 | Tennessee | 0.46% |
| 45 | Utah | 0.45% |
| 46 | South Carolina | 0.44% |
| 47 | Idaho | 0.43% |
| 48 | Arizona | 0.43% |
| 49 | Alabama | 0.37% |
| 50 | Hawaii | 0.31% |
Why this ranking matters
Homebuyers often focus on sale price, mortgage rate, and monthly principal-and-interest payment. But property tax is a recurring ownership cost that can materially change affordability. In higher-tax states, the annual tax burden can add thousands of dollars per year, which affects escrow payments, long-term cost projections, and the true carrying cost of a property.
Why property taxes vary by state
Property tax burdens differ because state and local governments fund public services in different ways. In some states, local budgets rely more heavily on property taxes to fund schools, infrastructure, emergency services, and municipal operations. Assessment rules, exemption programs, reassessment frequency, local rate-setting, and differences in housing values also shape the effective tax burden homeowners face.
- States with stronger reliance on local property taxation often rank higher on effective property tax burden.
- Assessment systems are not uniform, which means similar homes can face very different tax outcomes across states.
- Local exemptions and homestead rules can reduce actual liability for some homeowners.
- Statewide averages are useful for comparison, but actual bills still vary by county, city, and school district.
Methodology
This study ranks states by effective property tax rate, defined here as annual property tax paid divided by owner-occupied housing value. That metric is widely used in comparative property tax research because it normalizes for differences in home prices across states. The ranking used on this page is based on a 2024 ACS-derived dataset cited in the source section below. Dataset year: 2024 ACS property tax data.
- Metric used: effective property tax rate.
- Effective property tax rate is based on annual property tax paid relative to owner-occupied housing value.
- This page is a state-level comparison and does not attempt to model every county, city, or district-level rule.
- The ranking is for informational and educational use and should not be treated as a tax filing resource, legal advice, or an official tax notice.
Limitations
- Statewide averages do not reflect every local assessment rule, district levy, or exemption.
- Actual tax liability can vary substantially within the same state depending on county, municipality, school district, and property characteristics.
- This ranking compares state-level effective burden and should not be interpreted as an exact estimate for a specific address.
- Lavigate calculators may use local assumptions and estimation logic, so calculator outputs may differ from this statewide comparison page.
Estimate property tax with Lavigate calculators
Use Lavigate property tax calculators to estimate property tax in locations currently available on the site. These tools are designed for estimation purposes and can help compare annual housing costs across different regions.
Cite this study
If you reference this page in an article, newsletter, or resource page, please cite Lavigate and link to this study.
Frequently asked questions
Which state has the highest property taxes in this study?
Illinois ranks first in this study with an effective property tax rate of 1.79%.
Which state has the lowest property taxes in this study?
Hawaii ranks lowest in this study with an effective property tax rate of 0.31%.
What does effective property tax rate mean?
It refers to annual property tax paid as a percentage of owner-occupied housing value. It is commonly used to compare property tax burden across locations with different home prices.
Does this ranking show what I will personally pay?
No. This is a state-level comparison page. Your actual property tax bill depends on local rules, assessed value, exemptions, and other jurisdiction-specific factors.
Why can Lavigate calculator estimates differ from this page?
This page compares statewide effective tax burden, while calculators may use more localized assumptions or estimation logic. They serve different purposes and do not need to match exactly.
Sources
- Construction Coverage, analysis of U.S. Census Bureau American Community Survey (ACS) 2024 data on property taxes and owner-occupied housing value
- U.S. Census Bureau American Community Survey (ACS), owner-occupied housing and property tax fields used in state-level comparative analysis
- Lincoln Institute of Land Policy, background material on effective property tax rate comparisons across U.S. states
- Tax Foundation methodology background on mean effective property tax rates on owner-occupied housing
This study is for general informational purposes only. It is a comparative, state-level analysis of effective property tax burden and not an official tax determination. Actual property tax outcomes depend on local assessment rules, exemptions, taxable value, and jurisdiction-specific rates.