Trading in a monthly rental payment for a mortgage payment can be a thrilling experience for first-time homebuyers. However, the cost of owning property does not stop there.
Property taxes are one of the most prevalent payments associated with house ownership; the amount of your tax bill is determined by where you reside and the value of your property. Some states also levied property taxes on other items.
Property tax is a levy on certain types of physical property, such as homes, real estate and land. Local governments typically assess property tax, and the property owner pays the tax. The amount of tax due depends on the property’s location and how much it’s worth.
Local and state governments collect property taxes to fund school districts, police and fire departments, road construction and other local services. The local taxing authority, likely your county but possibly your city or town instead, typically determines the tax rate, which then gets multiplied by your home’s value, to determine your tax bill.
The term property tax is often used interchangeably with “real estate tax,” but some states also assess property tax on personal items, such as cars, boats, aircraft, machinery and even livestock.
Assessors (sometimes called appraisers) who work for the local taxing authority track the value of every piece of land and real estate in a taxing district, such as a city or county. They maintain databases of local property values, often using sophisticated mapping software.
To determine your property tax rate, your home’s value is typically multiplied by the established property tax rate. Your home’s assessed value will likely be less than its market value. By how much less will vary by location, but it’s common. The county may have many ways to detect changes in your home’s value, including inspections, permit applications from a remodeling project, reports from neighbors or regular updates.
Some states or local governments send a property tax bill annually, while others charge semi-annually or quarterly. Alternatively, property taxes can also be included in your mortgage payment, if you have an escrow account with your mortgage servicer.
How to Calculate Property Tax Rates
Property tax is typically determined by multiplying the value of the property by a tax rate: Property tax = value of the property x tax rate.
Your tax rate might not necessarily be expressed as a percentage, but rather as some number of mills, because real estate tax rates are also often based on the “millage rate,” where one mill is equal to one-thousandth of a dollar. For example, if the local property tax rate on homes is 15 mills, homeowners pay $15 in tax for every $1,000 in assessed home value. Accordingly, a house with a $200,000 assessed value would be taxed $3,000.
Some taxing authorities apply the tax rate only to a portion of the home value rather than to the full home value. That can reduce the bill.
Typically, there are two ways to pay the bill:
- Write a check or pay online once a year, every six months or quarterly when the bill comes from the taxing authority.
- If your mortgage includes an escrow account, your total mortgage payment likely factors in your property taxes. If your escrow account doesn’t have enough funds to cover all of your monthly costs, the mortgage servicer may need to pay using its own funds, which can lead to increased monthly mortgage premiums or an additional bill for you.
If you’re trying to pay property tax online, find tax records, or wondering how much the tax is in your area, check out your home county’s tax assessor website.
If you disagree with a property tax bill on your home, you can contest it by challenging your home’s assessed valuation. You’ll need to show that the assessed value doesn’t reflect your property’s true value. If successful, your appeal could result in a lower property tax bill.
- Make sure the assessment data is accurate and matches the details of your property.
- Gather comparable listings or ask a real estate agent to pull records of comparable sales for you. Often, tax records are available online from the local tax assessor.
- Call your assessor’s office to learn the dispute process. Aim to show that homes with similar tax values are better than yours. Start by discussing your findings by phone or in person.
- If you’re unsatisfied, you might be able to pursue the case with an independent tax appeals board.
Best States for Property Taxes
Property tax rates are difficult, but we have done some calculations to describe them below. It is important to note that the rates listed below may not accurately reflect your actual property taxes, which are determined by a variety of factors.
Read Also: How do You Become a Certified Tax Preparer?
Tax rates vary depending on the type of property, and they are regulated by cities, counties, and school districts. However, the values are below the statewide average to give you a basic picture. Let’s start with the average property tax in each state.
As an example, the median real estate tax paid in the United States overall was $2,971, while the median home value was $268,800. That makes the effective property tax rate for the United States 1.11%.
RANK | STATE | MEDIAN REAL ESTATE TAX PAID | EFFECTIVE REAL ESTATE TAX RATE |
---|---|---|---|
1 | New Jersey | $8,928 | 2.46% |
2 | Illinois | $5,213 | 2.29% |
3 | Connecticut | $6,251 | 2.16% |
4 | New Hampshire | $6,235 | 2.09% |
5 | Texas | $4,399 | 1.90% |
6 | Vermont | $4,706 | 1.89% |
7 | New York | $6,217 | 1.73% |
8 | Wisconsin | $3,570 | 1.71% |
9 | Nebraska | $3,184 | 1.70% |
10 | Iowa | $2,700 | 1.59% |
11 | Ohio | $2,658 | 1.57% |
12 | Pennsylvania | $3,352 | 1.56% |
13 | Rhode Island | $4,526 | 1.54% |
14 | Michigan | $2,734 | 1.45% |
15 | Kansas | $2,556 | 1.40% |
16 | Maine | $2,868 | 1.29% |
17 | Alaska | $3,716 | 1.24% |
18 | South Dakota | $2,528 | 1.22% |
19 | Massachusetts | $5,113 | 1.19% |
20 | Minnesota | $2,860 | 1.10% |
21 | Maryland | $3,709 | 1.07% |
22 | North Dakota | $2,378 | 1.02% |
23 | Missouri | $1,830 | 1.00% |
24 | Oklahoma | $1,623 | 0.99% |
25 | Georgia | $2,151 | 0.95% |
26 | Washington | $3,841 | 0.93% |
27 | Oregon | $3,457 | 0.92% |
28 | Florida | $2,372 | 0.89% |
28 | Kentucky | $1,508 | 0.89% |
30 | New Mexico | $1,721 | 0.84% |
31 | Montana | $2,339 | 0.83% |
31 | Indiana | $1,373 | 0.83% |
31 | Virginia | $2,656 | 0.83% |
34 | California | $4,804 | 0.81% |
34 | Mississippi | $1,289 | 0.81% |
36 | North Carolina | $1,765 | 0.80% |
37 | Arkansas | $1,031 | 0.66% |
38 | Tennessee | $1,376 | 0.65% |
39 | Idaho | $1,741 | 0.63% |
40 | Louisiana | $1,223 | 0.62% |
40 | Delaware | $1,695 | 0.62% |
42 | Wyoming | $1,501 | 0.61% |
43 | Arizona | $1,717 | 0.60% |
44 | District of Columbia | $3,754 | 0.59% |
44 | West Virginia | $916 | 0.59% |
46 | South Carolina | $1,213 | 0.58% |
47 | Utah | $1,972 | 0.57% |
48 | Nevada | $1,793 | 0.55% |
49 | Colorado | $2,125 | 0.52% |
50 | Alabama | $742 | 0.43% |
51 | Hawaii | $1,915 | 0.29% |
In addition to looking at state-level data, the ACS provides county-level property tax information (some of which you can find below under each state). Unfortunately, the ACS only tracks median real estate tax paid up to $10,000, at which point it lists “$10,000+”.
14 counties paid a median property tax of $10,000 or more, making them the counties with the highest absolute property taxes paid in the country (we can only estimate their effective property tax rate, as we don’t have actual tax data).
All but two of these counties were in New Jersey or New York:
COUNTY | MEDIAN HOME VALUE | MEDIAN REAL ESTATE TAX PAID |
---|---|---|
Marin County, California | $1,146,900 | $10,000+ |
Bergen County, New Jersey | $501,400 | $10,000+ |
Essex County, New Jersey | $416,600 | $10,000+ |
Hunterdon County, New Jersey | $440,100 | $10,000+ |
Morris County, New Jersey | $480,200 | $10,000+ |
Passaic County, New Jersey | $363,300 | $10,000+ |
Union County, New Jersey | $396,500 | $10,000+ |
Nassau County, New York | $567,200 | $10,000+ |
New York County, New York | $1,029,900 | $10,000+ |
Putnam County, New York | $383,300 | $10,000+ |
Rockland County, New York | $471,000 | $10,000+ |
Suffolk County, New York | $435,000 | $10,000+ |
Westchester County, New York | $583,600 | $10,000+ |
Falls Church city, Virginia | $895,000 | $10,000+ |
Now let’s take a look at property tax by state.
Alabama property tax
- Effective property tax rate: 0.43%
- Median home value: $172,300
- Median real estate tax paid: $742
The three counties in Alabama with the highest effective property tax rates are Greene County (0.77%), Jefferson County (0.62%), and Mobile County (0.55%). The Alabama counties with the lowest effective property tax rates are Choctaw County (0.21% or less*), Washington County (0.23%), and Bibb and Clarke Counties (0.24%).
Alaska property tax
- Effective property tax rate: 1.24%
- Median home value: $300,100
- Median real estate tax paid: $3,716
The areas in Alaska with the highest property taxes include the Copper River Census Area (2.56%), Bethel Census Area (1.56%), and Anchorage Municipality (1.37%). Much of Alaska does not have a property tax, with four boroughs (Aleutians East, Denali, Lake and Peninsula, and Northwest Arctic) and two Census Areas (Hoonah-Angoon and Kusilvak) showing no real estate taxes paid on the 2021 American Community Survey.
Arizona property tax
- Effective property tax rate: 0.60%
- Median home value: $283,900
- Median real estate tax paid: $1,717
The three counties in Arizona with the highest effective property tax rates are Pima County (0.89%), Yuma County (0.79%), and Santa Cruz County (0.76%). The Arizona counties with the lowest effective property tax rates are Apache County (0.34%), Greenlee County (0.37%), and Coconino County (0.48%).
Arkansas property tax
- Effective property tax rate: 0.66%
- Median home value: $157,300
- Median real estate tax paid: $1,031
The three counties in Arkansas with the highest effective property tax rates are Pulaski County (0.85%), Phillips County (0.82%), and Lafayette County (0.75%). The Arkansas counties with the lowest effective property tax rates are Stone County (0.34%), Searcy County (0.40%), and Randolph and Montgomery Counties (0.41%).
California property tax
- Effective property tax rate: 0.81%
- Median home value: $591,300
- Median real estate tax paid: $4,804
The three counties in California with the highest effective property tax rates are Modoc County (1.07%), Kern County (1.06%), and Riverside County (0.97%). The California counties with the lowest effective property tax rates are Tehama County (0.70%) and Mono, San Mateo, and Inyo Counties (0.71%).
Note that Marin County’s real estate tax paid isn’t captured accurately by the American Community Survey (it lists only “$10,000+” for median real estate tax paid) so its effective tax rate of 0.87% on a median home value of $1,146,900 may be significantly lower than the actual effective rate.
Colorado property tax
- Effective property tax rate: 0.52%
- Median home value: $407,100
- Median real estate tax paid: $2,125
The three counties in Colorado with the highest effective property tax rates are Kiowa County (0.83%) and Cheyenne and Kit Carson Counties (0.68%). The Colorado counties with the lowest effective property tax rates are Jackson County (0.20%), Greenlee County (0.28%), and San Miguel County (0.29%).
Connecticut property tax
- Effective property tax rate: 2.16%
- Median home value: $289,600
- Median real estate tax paid: $6,251
The three counties in Connecticut with the highest effective property tax rates are Hartford County (2.37%), New Haven County (2.32%), and Tolland County (2.22%). The Connecticut counties with the lowest effective property tax rates are Windham County (1.80%), Fairfield County (1.85%), and New London County (1.90%).
Delaware property tax
- Effective property tax rate: 0.62%
- Median home value: $274,800
- Median real estate tax paid: $1,694
Delaware’s three counties have effective tax rates of 0.81% in New Castle County, 0.54% in Kent County, and 0.38% in Sussex County.
District of Columbia property tax
- Effective property tax rate: 0.59%
- Median home value: $636,600
- Median real estate tax paid: $3,754
Florida property tax
- Effective property tax rate: 0.89%
- Median home value: $266,100
- Median real estate tax paid: $2,372
The three counties in Florida with the highest effective property tax rates are Alachua County (1.14%), Broward County (1.05%), and Hendry and St. Lucie Counties (1.04%). The Florida counties with the lowest effective property tax rates are Walton County (0.56%); Monroe County (0.62%); and Jackson, Franklin, and Holmes Counties (0.64%).
Georgia property tax
- Effective property tax rate: 0.95%
- Median home value: $226,600
- Median real estate tax paid: $2,151
The three counties in Georgia with the highest effective property tax rates are Taliaferro County (2.37%), New Haven County (2.32%), and Tolland County (2.22%). The Georgia counties with the lowest effective property tax rates are Windham County (1.80%), Fairfield County (1.85%), and New London County (1.90%).
Hawaii property tax
- Effective property tax rate: 0.29%
- Median home value: $669,200
- Median real estate tax paid: $1,915
The American Community Survey shows four counties with property tax data: Hawaii County (effective property tax rate of 0.32%), Honolulu County (0.30%), Kauai County (0.25%), and Maui County (0.20%). The ACS has no data for Kalawao County.
Idaho property tax
- Effective property tax rate: 0.63%
- Median home value: $277,400
- Median real estate tax paid: $1,741
The three counties in Idaho with the highest effective property tax rates are Power County (0.88%), Bannock County (0.87%), and Nez Perce County (0.86%). The Idaho counties with the lowest effective property tax rates are Idaho County (0.36%), Clark County (0.38%), and Boise County (0.42%).
Illinois property tax
- Effective property tax rate: 2.29%
- Median home value: $227,700
- Median real estate tax paid: $5,213
The three counties in Illinois with the highest effective property tax rates are DeKalb County (2.91%) and Lake and Winnebago Counties (2.90%). The Illinois counties with the lowest effective property tax rates are Pope County (1.16%), Pulaski County (1.17%), and Hardin County (1.37%).
Indiana property tax
- Effective property tax rate: 0.83%
- Median home value: $165,900
- Median real estate tax paid: $1,373
The three counties in Indiana with the highest effective property tax rates are Lake County (1.05%), Marion County (1.01%), and Vigo County (0.98%). The Indiana counties with the lowest effective property tax rates are Pulaski and Clay Counties (0.44%) and Martin County (0.48%).
Iowa property tax
- Effective property tax rate: 1.59%
- Median home value: $169,600
- Median real estate tax paid: $2,700
The three counties in Iowa with the highest effective property tax rates are Polk County (1.93%), Montgomery County (1.90%), and Pottawattamie and Monroe Counties (1.83%). The Iowa counties with the lowest effective property tax rates are Dickinson County (0.96%) and Lyon and Osceola Counties (1.00%).
Kansas property tax
- Effective property tax rate: 1.40%
- Median home value: $182,000
- Median real estate tax paid: $2,556
The three counties in Kansas with the highest effective property tax rates are Stanton County (2.66%), Stevens County (2.53%), and Graham County (2.35%). The Kansas counties with the lowest effective property tax rates are Coffey County (1.06%), Wichita County (1.10%), and Mead and Nemaha Counties (1.12%).
Kentucky property tax
- Effective property tax rate: 0.89%
- Median home value: $169,600
- Median real estate tax paid: $1,508
The three counties in Kentucky with the highest effective property tax rates are Campbell County (1.24%), Greenup County (1.19%), and Kenton County (1.16%). The Kentucky counties with the lowest effective property tax rates are Carter and Grayson Counties (0.60%) and Casey County (0.61%).
Louisiana property tax
- Effective property tax rate: 0.62%
- Median home value: $196,000
- Median real estate tax paid: $1,223
The three parishes in Louisiana with the highest effective property tax rates are Orleans Parish (0.87%), St. Tammany Parish (0.80%), and Caddo Parish (0.79%). The Louisiana parishes with the lowest effective property tax rates are East Feliciana Parish (0.15%), Catahoula Parish (0.22%), and West Carroll Parish (0.25%).
Maine property tax
- Effective property tax rate: 1.29%
- Median home value: $223,100
- Median real estate tax paid: $2,868
The three counties in Maine with the highest effective property tax rates are Androscoggin County (1.54%), Penobscot County (1.48%), and Knox County (1.42%). The Maine counties with the lowest effective property tax rates are Hancock County (1.05%), Lincoln County (1.09%), and Piscataquis County (1.12%).
Maryland property tax
- Effective property tax rate: 1.07%
- Median home value: $346,500
- Median real estate tax paid: $3,709
The three counties in Maryland with the highest effective property tax rates are Howard County (1.29%), Prince George’s County (1.24%), and Baltimore County (1.19%). The effective property tax rate of Baltimore city, which is reported separately, is 1.63%. The Maryland counties with the lowest effective property tax rates are Talbot County (0.72%), Worcester County (0.82%), and Queen Anne’s County (0.86%).
Massachusetts property tax
- Effective property tax rate: 1.19%
- Median home value: $431,100
- Median real estate tax paid: $5,113
The three counties in Massachusetts with the highest effective property tax rates are Franklin County (1.66%), Hampden County (1.65%), and Hampshire County (1.59%). The Massachusetts counties with the lowest effective property tax rates are Nantucket County (0.32%), Dukes County (0.51%), and Suffolk County (0.68%).
Michigan property tax
- Effective property tax rate: 1.45%
- Median home value: $188,300
- Median real estate tax paid: $2,734
The three counties in Michigan with the highest effective property tax rates are Ingham County (2.03%), Wayne County (1.82%), and Gogebic County (1.78%). The Michigan counties with the lowest effective property tax rates are Leelanau County (0.80%), Benzie County (0.88%), and Alcona County (0.92%).
Minnesota property tax
- Effective property tax rate: 1.10%
- Median home value: $260,500
- Median real estate tax paid: $2,860
The three counties in Minnesota with the highest effective property tax rates are Steele County (1.29%), Ramsey County (1.28%), and Chisago County (1.26%). The Minnesota counties with the lowest effective property tax rates are Aitkin County (0.59%), Cass County (0.63%), and Rock County (0.69%).
Mississippi property tax
- Effective property tax rate: 0.81%
- Median home value: $159,200
- Median real estate tax paid: $1,289
The three counties in Mississippi with the highest effective property tax rates are Humphreys County (1.78%), Quitman County (1.53%), and Leflore County (1.30%). The Mississippi counties with the lowest effective property tax rates are Amite County (0.47%), Choctaw County (0.54%), and Perry County (0.56%).
Missouri property tax
- Effective property tax rate: 1.00%
- Median home value: $183,900
- Median real estate tax paid: $1,830
The three counties in Missouri with the highest effective property tax rates are Worth County (1.41%), St. Louis County (1.31%), and Putnam County (1.29%). The Missouri counties with the lowest effective property tax rates are Douglas County (0.45%) and Reynolds and Dallas Counties (0.48%).
Montana property tax
- Effective property tax rate: 0.83%
- Median home value: $282,200
- Median real estate tax paid: $2,339
The three counties in Montana with the highest effective property tax rates are Liberty County (1.36%), Dawson County (1.29%), and Blaine County (1.16%). The Montana counties with the lowest effective property tax rates are Judith Basin County (0.43%), Madison County (0.49%), and Sanders County (0.53%).
New York property tax
- Effective property tax rate: 1.73%
- Median home value: $359,600
- Median real estate tax paid: $6,217
Like New Jersey, New York has six counties (Nassau, New York, Putnam, Rockland, Suffolk, and Westchester Counties) that the ACS reports “$10,000+” for median real estate tax paid. We used $10,000 for the calculations of those counties, though this may significantly underestimate the effective tax rate (especially for New York county, where the median home value is $1,029,900).
The three counties in New York with the highest effective property tax rates are Allegany County (3.48%), Orleans County (3.21%), and Monroe County (3.16%). The New York counties with the lowest effective property tax rates are Kings County (0.66%), Queens County (0.86%), and Richmond County (0.83%).
Washington property tax
- Effective property tax rate: 0.93%
- Median home value: $414,300
- Median real estate tax paid: $3,841
The three counties in Washington with the highest effective property tax rates are Pierce County (1.04%), Walla Walla County (1.03%), and Grant County (1.02%). The Washington counties with the lowest effective property tax rates are Wahkiakum County (0.62%) and Pend Oreille and San Juan Counties (0.63%).