All homeowners must plan for monthly expenses in addition to their mortgage payments, and one of the most predictable is property taxes. These taxes typically support expenses for public services and institutions such as schools, bridges, tunnels, and roads (as well as their upkeep), telecommunications, and municipal, county, or state-level safety measures.

Though some jurisdictions may tax other types of property, such as personal assets like cars, real estate remains the principal source of property tax assessments.

Property taxes vary depending on where you live and begin with a different baseline in each state. Once you know your state’s property tax rate, you may discover more about property taxes in your area.

What are Property Taxes?

Property taxes are based on the value of your home and are calculated on a local basis. How much you pay will depend on your state and municipality’s tax rates and your property’s current value.

“Jurisdictions in all 50 states and the District of Columbia impose property taxes,” according to the Urban Institute & Brookings Institution’s Tax Policy Center. However, “most property tax revenue comes from local levies,” which can be imposed by counties, municipalities, townships, school districts or special districts (ie, independent government units created for a limited, specific purpose).

Property taxes can be reassessed annually, meaning they might change every year, but some municipalities adjust their rates only once every few years. Check with your city or county assessor’s office for more information on the frequency of property tax calculation in your area.

Property tax in the US varies from state to state, county to county, and city to city. Another aspect of property tax is that higher median payments tend to be concentrated in urban areas. For instance, median property taxes paid in New York County, Cook County in Chicago, and Miami-Dade County are almost two to three times higher than their state’s average.

This happens due to above-average home prices in urban centers. New York State has a median house sale price of $491,000 compared to New York County’s median house sale price of $770,000. Property taxes are evaluated based on the percentage of home values. The places with higher housing prices have higher property taxes generally. 

States have their own policies regarding taxes. Some states prefer to have higher income and sales taxes to balance out their revenue generation. While some states have high property taxes alongside high rates in other major tax categories such as New Jersey and Illinois.

Some states with the highest property taxes in the US also have the most expensive electricity in the US including New Hampshire, Connecticut, and Vermont, among others.

Housing Property Market in the US

Residential properties include single houses, apartments, mobile houses, condominiums, vacation homes, or similar properties. In 2021, average level of median property taxes paid across the US was $1,682. Hawaii had the lowest property tax rate of 0.32% and New Jersey had the highest property tax rate of 2.23%, as of 2021. 

On October 20, Fortune shared that Morgan Stanley analysts changed their outlook for housing prices. Earlier in April 2023, analysts projected the housing property market to plunge and expected national home prices to drop to 4% in 2023. But analysts now expect housing prices to rise to 5% this year, followed by an increase in mortgage rates, hitting 8%. Mortgage rates have been at the highest level since 2000 and it has had a deep impact on the housing market. 

The monthly payment on a median-priced home is almost up 27% over the past year, as per Morgan Stanley’s calculation. If the monthly payment is adjusted based on the current 8% mortgage rate, it would be nearly 38% higher over the same period. Morgan Stanley has serious reservations about the mortgage rate if it continues to stay at 8%.

Read Also: How Much is Current Federal Gas Tax?

As per Morgan Stanley, “affordability deterioration would return to the most severe we have seen in decades, the 2022 experience notwithstanding.” Other financial institutions are also eyeing an increase in home prices. Goldman Sachs’ managing director, Roger Ashworth, expects home prices to rise by 1.8% by the end of 2023 and record a 3.5% increase by the end of 2024. 

Highest Property Taxes in the US

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%).

West Virginia property tax

• Effective property tax rate: 0.59%
• Median home value: $156,000
• Median real estate tax paid: $916

The three counties in West Virginia with the highest effective property tax rates are Wetzel County (0.81%), Hancock County (0.78%), and Cabell County (0.75%). The West Virginia counties with the lowest effective property tax rates are Pocahontas County (0.30%), Roane County (0.34%), and Summers County (0.36%).

Virginia property tax

• Effective property tax rate: 0.83%
• Median home value: $321,200
• Median real estate tax paid: $2,656

Virginia has 38 independent cities that are considered equivalent to counties for census data. We’ve treated them as counties here. In general, though not in every case, the cities’ effective tax rates are higher than the counties’.

The three cities in Virginia with the highest effective property tax rates are Manassas Park city (1.24%), Portsmouth city (1.17%), and Roanoke city (1.15%). The Virginia counties with the lowest effective property tax rates are Craig County (0.38%), Buchanan County (0.45%), and Nottoway County (0.46%).

Note that Falls Church city’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 1.12% on a median home value of $895,300 may be significantly lower than the actual effective rate.

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%).

Texas property taxes

• Effective property tax rate: 1.90%
• Median home value: $232,000
• Median real estate tax paid: $4,399

The three counties in Texas with the highest effective property tax rates are Mitchell County (2.72%), Sherman County (2.51%), and El Paso County (2.42%). The Texas counties with the lowest effective property tax rates are Glasscock County (0.16%), Ward County (0.37%), and Leon County (0.72%).

Note that the ACS does include median real estate tax paid for Crockett, Culberson, Dimmit, Kenedy, King, LaSalle, Loving, McMullen, Sterling, or Zavala Counties. Also not included are median home values for Dimmit, Kenedy, Kent, King, or Loving Counties.

South Carolina property tax

• Effective property tax rate: 0.58%
• Median home value: $207,400
• Median real estate tax paid: $1,213

The three counties in South Carolina with the highest effective property tax rates are Hampton County (0.96%), Williamsburg County (0.82%), and Richland County (0.81%). The South Carolina counties with the lowest effective property tax rates are Horry County (0.37%) and  Charleston, Florence, and Darlington Counties (0.46%).

Pennsylvania property tax

• Effective property tax rate: 1.56%
• Median home value: $215,300
• Median real estate tax paid: $3,352

The three counties in Pennsylvania with the highest effective property tax rates are Monroe County (2.32%), Delaware County (2.15%), and Berks County (2.00%). The Pennsylvania counties with the lowest effective property tax rates are Bedford County (0.83%), Philadelphia County (0.94%), and Huntingdon County (0.99%).

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%).

Understanding your likely property tax burden can be important if you’re looking for the best state to retire to or just considering a move somewhere else in the country. The above figures are generalizations but can help you get an idea of what most people pay.