U.S. Property Taxes by State — 2025 Report

Last updated: January 2025

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Property taxes are one of the main sources of revenue for local governments. They’re used to fund public services and programs, such as schools; emergency services (including fire and police departments); infrastructure development and upkeep; parks and recreation; sanitation (including pest control, like mosquito abatement); public works; government employee payrolls; and more.

Levied annually, property taxes are calculated by multiplying the assessed value of the property¹ by the effective tax rate² applicable in the property’s region, as well as taking into account any exemptions or deductions that the owner or property may qualify for.

Property taxes can vary significantly from state to state, leading to a difference of potentially thousands of dollars in a homeowner’s bill for essentially identical properties.

Therefore, it’s crucial to thoroughly research property taxes at both the state level — to get a general idea of a state’s level of taxation — and a very specific local level for an area you may be considering relocating to.

Moreover, it must be kept in mind that tax levies are always set by local governments — such as the city, county or school district — and may include surtaxes for special assessment districts that may be as small as a neighborhood or subdivision.

To provide a clear snapshot of a state's overall tax burden, we determined each state's average effective tax rate by dividing the median real estate taxes paid by the median home value, based on data from the U.S. Census Bureau. In simple terms, this shows what percentage of a state's median home value goes toward property taxes.

Explore the table below to discover 2025 property taxes ranked by state.

Note: All figures, including tax rates and median home values, are based on 2023 figures, the most recent data made available by the U.S. Census Bureau.

Explore the interactive map below for a quick look at average effective property tax rates across all states, plus Washington, D.C., and Puerto Rico. Hover over or zoom in on a state to see more details at a glance.

Note: The average effective tax rates displayed on the map above are expressed as a percentage of home value. They were calculated by PropertyShark for each individual state by dividing the median real estate taxes paid by the median home value. All figures, including tax rates and median home values, are based on 2023 figures, the most recent data made available by the U.S. Census Bureau.

What is the state with the highest property taxes in 2025?

New Jersey has the highest effective tax rate: 2.23%.

For an easier overview of the differences in tax rates among the states with the highest property taxes, see our chart below:

Explore below the top 10 states with the highest property taxes in the U.S., according to the average effective tax rate. Also included are the median state home value, the median real estate taxes paid and the median household income.

1. New Jersey

Effective tax rate: 2.23%
State median home value: $427,600
Median real estate taxes paid: $9,541
Median household income: $101,050

New Jersey homeowners contend with the highest average effective property tax rate in the U.S. Paired with the ninth-highest state median home value, New Jersey homeowners have the absolute highest median real estate tax bill in the country at more than $9,500. Plus, New Jersey also charges one of the highest sales taxes at 7%, while its graduated income tax ranges from as low as 1.4% to as high as 10.75%.

2. Illinois

Effective tax rate: 2.07%
State median home value:$250,500
Median real estate taxes paid: $5,189
Median household income: $81,702

Although Illinois has the second-highest property tax rate in the U.S., homeowners face noticeably lower tax bills here than in New Jersey, thanks to the state’s significantly lower median home value. However, Illinois homeowners still pay the sixth-highest median property tax bill in the country. Its 6.25% sales tax is also on the heftier side and is joined by a 4.95% state income tax.

3. Connecticut

Effective tax rate: 1.92%
State median home value: $343,200
Median real estate taxes paid: $6,575
Median household income: $93,760

Connecticut’s property taxes are among the absolute highest in the U.S. As a result, Connecticut homeowners pay the third-highest property tax rate in the U.S. And, since Connecticut’s median home value trends higher than that of New Hampshire, Connecticut’s tax dues surpass New Hampshire’s property tax bills in sheer dollar amount. It’s also worth mentioning that while New Hampshire charges no sales tax, Connecticut’s state sales and use tax is 6.35%, the 11^th highest nationwide.

4. New Hampshire

Effective tax rate: 1.77%
State median home value: $367,200
Median real estate taxes paid: $6,505
Median household income: $95,628

5. Vermont

Effective tax rate: 1.71%
State median home value: $290,500
Median real estate taxes paid: $4,956
Median household income: $78,024

6. New York

Effective tax rate: 1.60%
State median home value: $403,000
Median real estate taxes paid: $6,450
Median household income: $84,578

7. Texas

Effective tax rate: 1.58%
State median home value: $260,400
Median real estate taxes paid: $4,111
Median household income: $76,292

8. Wisconsin

Effective tax rate: 1.51%
State median home value: $247,400
Median real estate taxes paid: $3,746
Median household income: $75,670

9. Nebraska

Effective tax rate: 1.50%
State median home value: $223,800
Median real estate taxes paid: $3,350
Median household income: $74,985

10. Iowa

Effective tax rate: 1.43%
State median home value: $195,900
Median real estate taxes paid: $2,795
Median household income: $73,147

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What is the state with the lowest property taxes in 2025?

Hawaii has the lowest effective tax rate: 0.27%.

Some U.S. states (and territories) boast attractively low property tax rates paired with low taxation in other areas, as well. For instance, Louisiana currently has the ninth-lowest property tax rate in the U.S. at 0.55%. And, at 4%, it also has one of the lowest sales taxes in the country, as well, while its state income taxes range between 2% and 6%.

For an easier overview between the differences in tax rates among the states with the lowest property taxes, explore our chart below:

Explore our list below to see the states with the 10 lowest property taxes by their average effective property tax rate. Also included are the median state home value, the median real estate taxes paid and the median household income.

1. Hawaii

Effective tax rate: 0.27%
State median home value: $808,200
Median real estate taxes paid: $2,183
Median household income: $98,317

Hawaii currently has the lowest average effective property tax rate in the U.S. at 0.27%. However, because it also features one of the highest median home values, homeowners’ tax bills can still easily surpass that of states with higher rates. Even so, at 4%, the state also has one of the lowest sales tax rates in the country — as states with a thriving tourist industry often do.

2. Alabama

Effective tax rate: 0.38%
State median home value: $195,100
Median real estate taxes paid: $738
Median household income: $62,027

With an effective property tax rate of 0.38% and the seventh-lowest median home value in the U.S., Alabama offers a homeowner-friendly tax environment overall. Plus, its 4% sales tax is also among the lowest in the U.S., while its income tax ranges between 2% and 5% — making this an attractive location for those looking to own a larger home on a lower budget.

3. Colorado

Effective tax rate: 0.49%
State median home value: $502,200
Median real estate taxes paid: $2,448
Median household income: $92,470

Although Colorado’s property tax rate sits at 0.49%, higher home values than in other states with similarly low property tax rates actually leave homeowners here with a bill that’s three times higher than in Alabama. And, while the state income tax sits at a middling 4.63%, Coloradoans do benefit from the lowest sales tax in the country at 2.9%. That’s surpassed only by the seven states that levy no state sales tax at all.

3. Nevada

Effective tax rate: 0.49%
State median home value: $406,100
Median real estate taxes paid: $1,970
Median household income: $75,561

4. Puerto Rico

Effective tax rate: 0.50%
State median home value: $124,600
Median real estate taxes paid: $627
Median household income: $25,096

5. South Carolina

Effective tax rate: 0.51%
State median home value: $236,700
Median real estate taxes paid: $1,199
Median household income: $66,818

6. Arizona

Effective tax rate: 0.52%
State median home value: $358,900
Median real estate taxes paid: $1,858
Median household income: $76,872

7. Utah

Effective tax rate: 0.53%
State median home value: $455,000
Median real estate taxes paid: $2,412
Median household income: $91,750

7. Delaware

Effective tax rate: 0.53%
State median home value: $326,800
Median real estate taxes paid: $1,731
Median household income: $82,855

7. Idaho

Effective tax rate: 0.53%
State median home value: $376,000
Median real estate taxes paid: $2,006
Median household income: $74,636

8. West Virginia

Effective tax rate: 0.54%
State median home value: $155,600
Median real estate taxes paid: $835
Median household income: $57,917

9. Louisiana

Effective tax rate: 0.55%
State median home value: $208,700
Median real estate taxes paid: $1,146
Median household income: $60,023

9. Tennessee

Effective tax rate: 0.55%
State median home value: $265,800
Median real estate taxes paid: $1,400
Median household income: $67,097

10. Arkansas

Effective tax rate: 0.57%
State median home value: $175,300
Median real estate taxes paid: $1,003
Median household income: $58,773

All 50 states (as well as Washington, D.C. and Puerto Rico) saw the media property tax bill rise year-over-year, despite effective tax rates trending down. This came as the result of median home values increasing throughout the country, leading to elevated bills. So, even though owners paid higher property taxes, the average effective tax rate now sits below 0.6% in 16 states, up from 11 in 2023. New Hampshire recorded the largest drop in effective tax rates, going from 2.09% in the previous year to 1.89% in 2024.

Explore the table below to see how 2024 compares to 2023 when it comes to property tax rates, median home values and median property taxes paid in all 50 U.S. states plus Washington, D.C. and Puerto Rico:

Note: All figures, including tax rates and median home values, are based on 2023 (referred to as "current") and 2022 (referred to as "previous") figures, the most recent data made available by the U.S. Census Bureau.

Data concerning median real estate taxes paid, the state (including D.C. and the Commonwealth of Puerto Rico) median home value, the median household income was extracted from the >U.S. Census Bureau’s 2018-2022 American Community Survey 5-Year Estimates.

The average effective tax rate (also referred to as effective tax rate on this page) was calculated by dividing the median real estate taxes paid by the median home value.

Median home value has been defined as the assessed median home value. However, it’s important to note that the assessment refers not to a tax assessor’s valuation, but to the assessment of American Community Survey respondents of what their property might sell for if it were on the market.

1.The assessed value of a property is calculated by a government assessor designated by the tax jurisdiction under whose purview the property falls. Generally, the tax assessed value is calculated every one to five years. The assessed value of a property is determined by a variety of factors, such as recent comparable property sales in the area; the cost to replace the property; potential income the property would produce if rented (taking into account operation costs); and any improvements or damages.

The percentage of market value that is assessed for a property’s taxation or tax liability is known as the assessment ratio. This can range from 100% –– meaning that the tax jurisdiction assesses a property’s full market value for taxation — to as low as 10%. So, a $1 million home located in a tax jurisdiction with a 20% assessment ratio will have an assessed value of $200,000, which is the amount that it will be taxed for.

2. The effective tax rate — also referred to as millage or mill rate — is calculated by adding all of the mill levies or millage rates for each tax jurisdiction that the property is located in. For example, a home can fall under the tax jurisdiction of a city, county and school tax district. As a result, that property’s mill levy will be the sum of all three tax jurisdictions’ millage.

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Information, statistics and analysis provided by PropertyShark have been covered by thousands of news outlets and publications that rely on PropertyShark for accurate and reliable real estate data, including The New York Times, Bloomberg, The Wall Street Journal, Forbes and The Real Deal.

Disclaimer

Information provided on this page is purely informational and is not, and should not be regarded as, investment advice.

Eliza Theiss

Senior Writer

Eliza Theiss is a senior writer reporting real estate trends in the U.S. Her work has been cited by CBS News, Curbed, The Los Angeles Times, and Forbes among others. With an academic background in journalism, Eliza has been covering real estate since 2012. Before joining PropertyShark, Eliza was an associate editor at Multi-Housing News and Commercial Property Executive. She has also contributed extensively to CommercialEdge. Reach her at [email protected]

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