States With the Highest and Lowest Property Taxes

Homeowners in Hawaii pay an average of just 0.3% of their property value in taxes every year — the lowest effective property tax rate of any state. Nationwide, the effective property tax rate is 1.1% of the average home value. However, annual property tax collections per capita in the state are higher than in 19 states largely because of Hawaii’s high property values. The median home value in the state is the nation’s highest.

Homeowners in Alabama pay an average of just 0.4% of their home value in property taxes every year, a smaller share than in every state other than Hawaii. Property tax revenues are typically used in part for funding local public schools, and in Alabama, public school funding is just $9,511 per pupil per year, nearly $3,000 below the national average.

Louisiana has the third lowest effective property tax rate of any state. Partially as a result, the state and local governments in Louisiana derive far larger than typical shares of annual revenue from other sources, such as sales tax.

Wyoming has one of the lowest effective property tax rates of any state. Still, state and local governments derive a far higher than average share of overall tax revenue from property taxes, at 44.5%. Nationwide, states derive 31.9% of their tax revenue from property taxes, on average.

Property taxes are low in West Virginia. The state is one of only 10 nationwide where per capita property tax collections are less than $1,000. West Virginia also has the highest homeownership rate of any state, at 72.5%.

Homeowners in South Carolina pay an average of only about half a percent of their home value in property taxes per year, well below the average effective property tax rate of 1.1% nationwide. Property taxes are often used to fund public school systems, and in South Carolina, per pupil education spending is lower than in most other states.

The typical home in Colorado is worth $373,300, about $150,000 more than the national median home value. Partially as a result, Colorado has relatively high property tax collections per capita, despite having one of the lowest effective property tax rates of any state.

With an effective property tax rate of 0.58% — well below the 1.1% national average — Delaware is one of only 10 states nationwide where annual per capita property tax collections are less than $1,000. Partially as a result, just 18.9% of state and local tax revenue in the state come from property taxes, well below the 31.9% national average.

Utah is one of three Western states in the continental U.S. to rank among the 10 states with the lowest effective property tax rates. Property taxes are often used to fund public school systems, and in Utah, per pupil education spending at the elementary and secondary levels is just $7,179, lower than in every other state.

With one of the lowest median home values in the country and one of the lowest effective property tax rates of any state, property tax collections per capita in Arkansas are just $740, less than half the $1,617 national average. Just 18.5% of state and local tax revenue in Arkansas comes from property tax, the second smallest share of any state.

Mississippi is one of several southern states to have an effective property tax rate well below the 1.1% average across states. In general, all taxes in the state tend to be low, as the total tax burden per capita in the state is $2,742, the lowest of any state. Partially as a result, Mississippi is far more dependent on federal aid than most states.

Nevada has one of the lowest effective property tax rates of any state, and partially as a result, property taxes account for just 22.5% of state and local revenue, well below the 31.9% national average. Nevada is a popular tourist destination, and as such, the bulk of the state’s tax revenue comes from sales tax.

Homeowners in Arizona pay an average of just 0.67% of their property value in taxes every year — one of the lowest effective property tax rates of any state. Like many states with low effective property tax rates, Arizona relies heavily on federal aid.

The effective property tax rate in New Mexico of 0.68% is only slightly higher than the rate in neighboring Arizona. However, the typical home in New Mexico is worth $66,400 less than the typical home in Arizona, and partially as a result, per capita property taxes in New Mexico are just $792 per year, well below the comparable $1,099 figure in Arizona.

Homeowners in Tennessee pay an average of just 0.73% of their home value in property taxes every year, one of the smaller shares among states. Property taxes typically go toward funding local public schools, and in Tennessee, public school funding is just $9,184 per pupil, about $3,000 below the national average.

The typical home in California is worth over half a million dollars. So even though state residents pay a relatively small share of their overall home value in property taxes, per capita property tax payments are higher in California than in most states.

The effective property tax rate in Idaho is 0.75%, below the 1.1% average across the United States. With lower than average property taxes, Idaho derives a larger than average share of its tax revenue from sources like sales and income tax.

Montana is one of several Western states with a lower than average property tax rate. The state also does not levy a personal income tax. With fewer and smaller revenue streams than most states, Montana derives 46.1% of its general revenue from federal aid, the largest such share of any state.

Homeowners in Kentucky pay an average of 0.82% of their home value in property taxes every year, a lower than average effective property tax rate. The relatively low property tax rate, coupled with relatively low home values, translate to especially low property tax revenue per capita. Property taxes per capita in Kentucky are just $831 a year, less than in all but four other states.

North Carolina’s effective property tax rate of 0.85% is lower than the 1.1% average rate across all states. Partially as a result, other taxes like sales and personal income contribute more than average to North Carolina’s overall tax revenue.

Virginia residents pay a property tax rate of 0.86% of their overall home value, a lower share than the national average. However, the typical home in the state is worth $281,700 — about $52,000 more than the typical American home. The per capita property taxes paid are therefore higher than they are in most states, at $1,652.

Homeowners in Indiana pay an average of just 0.87% of their home value in property taxes every year, one of the smaller shares among states. The low effective property tax rate, coupled with the relatively low statewide median home value of $147,300, translates to especially low property taxes per capita. Property tax per capita in Indiana is just $1,041 a year, less than in most other states.

The effective property tax in Oklahoma is just 0.88%, less than the 1.1% national average. Home values are also relatively low in the state, with the typical home valued at $140,000, about $90,000 less than the typical home nationwide. Partially as a result, the actual dollar value of property tax paid per capita basis is nearly the lowest in the country, at just $730.

Washington state’s effective property tax rate of 0.92% is lower than that of most states and below the 1.1% national average. Additionally, Washington is one of only a handful of states that does not levy a personal income tax. As a result, the bulk of government funding in the state comes from sales tax, which accounts for 46.4% of total tax revenue, the largest such share of any state.

Georgia is a relatively low tax state. The effective property tax rate in Georgia of 0.92% is slightly below the national average, and overall state and local tax collections in the state are equal to $3,739, well below the $5,073 average collection across all states. Higher taxes can result in reduced dependence of federal funding, and federal aid accounts for over a third of Georgia’s general revenue, well above the 22.7% national average.

Florida’s effective property tax rate of 0.94% is slightly below the 1.1% national average. Florida is a popular tourist destination, and as such, the bulk of its tax revenue comes from sales tax. The state levies a 6% sales tax on top of an average local sales tax rate across the state of 1% — more than most other states.

North Dakota’s effective property tax of 0.95% of the value of owner-occupied homes is below the national rate of 1.1%, but annual property tax collections per capita actually rank 15th highest among states. However, property taxes represent less than 25% of state and local tax collections, compared to the average of close to a third of state and local taxes collected nationwide.

The effective property tax rate in Washington of 0.98% is lower than the 1.1% national average. However, real estate values are high in Oregon, with a median home value of $341,800 — $112,100 more than the national median. Partially as a result, despite a somewhat lower effective property tax rate, property taxes account for 31.4% of all tax revenue in Oregon, in line with the national average.

In Missouri, the typical home has a value of $162,600, about $67,000 below the national median home value. The effective property tax rate of 1.01% is also slightly lower than the national average. As a result, the state’s property tax collections per capita of $1,039 are lower than two-thirds of states and about $600 below the average property tax collections per capita across states.

Alaska’s effective property tax rate of 1.02% of the value of owner-occupied homes is slightly below the national figure, but the state’s median home value of $276,100 is relatively high. Partially as a result, the state ranks 10th in property tax collections per capita, at $2,120 per year. Property taxes represent close to 52% of all state and local tax collections in Alaska, second most of any state behind New Hampshire.

Maryland’s property tax collections per capita of $1,623 are roughly in line with the national average. However, property taxes represent a relatively small, 25.8%, of total state and local sales tax collections in the state. This is largely because the state’s income tax collections are very high — Maryland has the highest median household income of any state.

Minnesota has the third highest homeownership rate in the country, and the median home value is closely in line with the national average. The state’s property tax collections per capita of $1,599 per year are also in line with the national figure.

The typical home in Massachusetts is worth just over $400,000, the third highest median home value among states. Additionally, the effective property tax rate of 1.15% is also slightly above the national average. Partially as a result, the state’s property tax collections per capita are among the highest in the country, at $2,434, about $800 higher than the national figure.

South Dakota collects no personal income tax and has relatively low corporate tax collections. As a result, the state’s property tax collections represent a relatively large share of 38.0% of total state and local tax collections. Nationwide, property taxes represent an average of 31.9% of state and local tax collections.

Maine has the sixth highest homeownership rate as well as a relatively high effective property tax rate. Therefore, despite the fact that the state’s median home value is slightly below the national median home value, the state’s property tax collections per capita are higher than that of most states and about $500 higher than the U.S. average.

While states with relatively high effective property tax rates tend to use much of that revenue to fund school systems, just 17.2% of Kansas public elementary and secondary school revenue comes from property taxes, the sixth lowest share among states and well below the 36.4% national average.

New York state spends more per public school student than any other state, at $23,091 per pupil, nearly double the national average. Almost half of the public school system’s revenue comes from property taxes — the state collects just over $2,900 per capita in property taxes per year, the fourth most of any state.

Michigan’s homeownership rate is sixth highest in the country, at 71.2%. The state has a relatively low median home value, at $162,500, about $67,000 below the national median home value. Even though the state’s effective property tax rate of 1.44% of the value of owner-occupied homes is above the national effective rate, Michigan’s property tax collections per capita of $1,416 are less than the national figure and that of the majority of states.

The typical home in Iowa has a value of just $152,000, eighth lowest among states and $77,700 below the national median home value. As a result, despite the state’s effective property tax rate of 1.5%, which is well above the 1.1% national average effective rate, the dollar amount of state and local property tax collections per capita is roughly in line with the national figure.

A relatively large 44.1% of Pennsylvania’s public school system revenue comes from state and local property taxes. The state has relatively low property values and a relatively high effective property tax rate, and as a result, collections per capita are roughly in line with the national figure.

The effective property tax rate in Rhode Island is 1.53% — 10th highest among states and well above what the average American homeowner pays per year, which is about 1.11% of their property value. Revenue from property taxes often goes toward school funding, and Rhode Island spends more on public elementary and secondary education than most states, at $15,943 per pupil, compared to the $12,201 national average.

The typical home in Ohio is worth just $151,100, far less than the median home value nationwide of $229,700. Partially as a result, despite a higher than average effective property tax rate, property tax payments in Ohio are equal to just $1,316 per capita, well below the national average of $1,617. Additionally, Ohio derives only about 28.1% of total tax revenue from property taxes, below the 31.9% national average.

Nebraska’s effective property tax rate is higher than in most states, and partially as a result, property taxes account for 38.2% of the overall state and local tax revenue, well above the 31.9% national average. Nebraska relies less on taxes levied on sales, personal income, or corporations than the average across all states.

Texas is one of only a handful of states that does not levy a personal income tax. With fewer tax revenue sources than much of the rest of the country, state and local governments in Texas rely heavily on property tax. Homeowners in the state pay an average of 1.69% of their home value in property taxes per year, well above the average effective property tax rate of 1.11% nationwide.

Connecticut is one of several Northeastern states with near-nation-leading property tax rates. The effective property tax rate in the state is 1.7%, and due to a higher than average home values, per capita property tax payments are $3,020 annually in Connecticut, third highest among states.

Property tax revenues are often used to fund public schools, and Connecticut spends $19,322 per pupil on education, more than every state other than New York.

Wisconsin has the second highest effective property tax rate in the Midwest and fifth highest nationwide. Homeowners in the state pay an average of 1.73% of their home value in property taxes per year, well above the average effective property tax rate of 1.11% nationwide. Perhaps not surprisingly, state and local governments in Wisconsin derive more revenue from property taxes than any other kind of tax.

With the fourth highest effective property tax rate of any state, per capita property tax payments in Vermont are $2,670 a year, about $1,000 more than the average across all states. The high property taxes mean that the state’s budget depends less on other forms of taxes like those levied on sales or personal income. Meanwhile, property taxes account for 44.2% of Vermont’s total tax revenue, well above the 31.9% national average.

One of only three states with an effective property tax rate above 2%, New Hampshire has the highest effective property tax rate in New England and third highest nationwide. The high property taxes in New Hampshire help make up for reduced revenue from other forms of taxes. For example, unlike most states, New Hampshire does not tax wage income, and it does not levy a tax on sales.

The effective property tax rate in Illinois of 2.05% is the highest in the Midwest and second highest nationwide. Like many states with higher than average property taxes, the state’s public education spending is relatively high. Per pupil spending in the state is $15,337 per year, well above the $12,201 national average.

Homeowners in New Jersey pay an average of 2.21% of their property value in taxes every year — the highest effective property tax rate of any state. Partially as a result, some 46.9% of state and local tax revenue in New Jersey comes from property taxes, well above the 31.9% average across all states. Additionally, like most high-property tax states, New Jersey has higher than average education spending. Per pupil public school spending in the state is $18,920 per year, well above the $12,201 national average.