Based on an analysis by the Tax Foundation, state taxes collected per capita in 2021 were $3,831. That year’s median household income was $70,784, probably $55,000 after federal and local taxes and Social Security payments. That makes state property taxes about 7% of after-tax income.
The state tax burden is particularly large during periods of inflation—household budget costs, especially for food and fuel, jump quickly. Discretionary spending falls. Taxes of any kind become a larger burden.
The state with the highest taxes, the Tax Foundation found, was Vermont at $6,356. That would push the state tax to 11% of after-tax income. Alaska had the lowest property tax per capita at $1,438.
There is no geographic or income pattern to state property tax levels. Among the states with the lowest property taxes are relatively poor based on income, including Louisiana and Alabama. The list also includes higher-income New Hampshire (which shares a border with Vermont).
Among the ten states with the highest property taxes is North Dakota, which has a median household income close to the national number. The top 10 also includes high-income Connecticut and Massachusetts, each over 1,500 miles from North Dakota.
These are the states with the highest property taxes.
(Also read: this is where Americans are paying the most state and local taxes: all 50 states ranked.)
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