Property Taxes by State in 2026: Rates and Yearly Bills Compared

Average effective property tax rates for all 50 states and DC, with the yearly and monthly bill on a $400,000 home.

Property tax is one of the biggest costs of owning a home, and it varies more from state to state than almost any other tax. On a $400,000 home, the yearly bill ranges from about $1,080 in Hawaii to about $8,320 in New Jersey, a difference of $7,240 a year, or $603 added to every monthly mortgage payment.

What an “effective” rate means

Local governments set property tax as a rate applied to the assessed value of a home, and assessed value is often lower than market value. Homestead exemptions, assessment caps and senior discounts then reduce the bill further. The effective rate cuts through all of that: it is the tax actually paid divided by the home’s market value. It is the most useful number for comparing places, because it is what you can multiply by a purchase price to estimate your bill.

Lowest and highest property tax states

The five states with the lowest average effective rates are Hawaii, Alabama, Idaho, Nevada and Colorado. The five highest are New Jersey, Illinois, Connecticut, Vermont and New Hampshire. Low-rate states are not always cheap places to own a home: Hawaii’s low rate applies to some of the highest home prices in the country, while several high-rate Midwestern states have modest prices, so the dollar bill can be similar.

Property tax rates for every state

Ranked from lowest to highest rate. Yearly and monthly figures are for a home worth $400,000 at the statewide average rate. Follow a state’s link for payments at other prices.

RankStateEffective rateTax per yearPer month
1Hawaii0.27%$1,080$90
2Alabama0.40%$1,600$133
3Idaho0.47%$1,880$157
4Nevada0.48%$1,920$160
5Colorado0.49%$1,960$163
6South Carolina0.51%$2,040$170
7Arizona0.52%$2,080$173
8Utah0.52%$2,080$173
9Delaware0.55%$2,200$183
10Louisiana0.55%$2,200$183
11West Virginia0.55%$2,200$183
12Tennessee0.56%$2,240$187
13Wyoming0.56%$2,240$187
14Arkansas0.57%$2,280$190
15District of Columbia0.57%$2,280$190
16Mississippi0.67%$2,680$223
17New Mexico0.67%$2,680$223
18Montana0.68%$2,720$227
19North Carolina0.70%$2,800$233
20California0.71%$2,840$237
21Kentucky0.75%$3,000$250
22Indiana0.77%$3,080$257
23Oklahoma0.80%$3,200$267
24Virginia0.80%$3,200$267
25Florida0.82%$3,280$273
26Georgia0.83%$3,320$277
27Washington0.84%$3,360$280
28Oregon0.86%$3,440$287
29Missouri0.88%$3,520$293
30North Dakota0.92%$3,680$307
31Maryland0.99%$3,960$330
32Minnesota1.02%$4,080$340
33Alaska1.04%$4,160$347
34Massachusetts1.04%$4,160$347
35South Dakota1.08%$4,320$360
36Maine1.09%$4,360$363
37Rhode Island1.23%$4,920$410
38Michigan1.28%$5,120$427
39Kansas1.34%$5,360$447
40Pennsylvania1.35%$5,400$450
41Ohio1.36%$5,440$453
42New York1.40%$5,600$467
43Iowa1.43%$5,720$477
44Texas1.47%$5,880$490
45Nebraska1.50%$6,000$500
46Wisconsin1.51%$6,040$503
47New Hampshire1.61%$6,440$537
48Vermont1.71%$6,840$570
49Connecticut1.79%$7,160$597
50Illinois1.95%$7,800$650
51New Jersey2.08%$8,320$693

Statewide averages, rounded. Rates inside a state can differ by a factor of two or more between counties and school districts.

How property tax affects your mortgage payment

Most lenders collect property tax monthly through an escrow account and pay the bill for you, so it is part of the payment you budget for. Lenders count it when they apply the 28% housing-cost rule, which means a high-tax area reduces how much house you can qualify for. As an example, at a 6.5% rate with 20% down, the principal and interest on a $400,000 home is about $2,023 a month. A 0.5% effective rate adds $167 to that; a 2% rate adds $667, which at the 28% rule requires roughly $21,400 more in yearly income to qualify.

Ways to lower your property tax bill

  • Claim the homestead exemption. Most states reduce the taxable value of a primary residence, but many require you to apply once after buying. It is easy to miss in the first year.
  • Check your assessment. Compare your assessed value with recent sales of similar homes. If it is too high, the appeal process is usually free and has a short deadline after the notice is mailed.
  • Look for age, veteran and disability programs. Many states freeze or cut taxes for seniors and disabled veterans.
  • Compare neighboring towns. School district and city lines can change the rate noticeably within a few miles.

Property tax vs income tax

Several states with no income tax, such as Texas and New Hampshire, have above-average property taxes, because they rely on them to fund schools and local services. When comparing places to live, add the two together: our state pages show both the take-home pay on a salary and the property tax on a home in the same state.

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