Property taxes in the U.S. can really vary depending on where you live. That’s because each state sets its own tax rates, and home values differ a lot too. If you own a home—or are thinking of buying one—understanding how these taxes work can help you plan your finances better.
Quick Facts About Property Taxes by State (2025):
- How They’re Calculated: Your property tax bill is based on your home’s assessed value, which local tax folks figure out. Then they multiply that by your state’s tax rate to get the final amount you owe.
- Lowest Property Taxes: Hawaii is still the winner when it comes to low property taxes, with an effective rate of just 0.27%. Close behind are Alabama (0.39%), Colorado (0.49%), and Nevada (0.50%).
- Highest Property Taxes: On the flip side, New Jersey tops the list with the highest rate at 2.23%. Illinois (2.08%), New Hampshire (1.93%), and Connecticut (1.79%) aren’t far behind.
- No State Is Tax-Free: Every state in the U.S. has some form of property tax in 2025. That said, some states do offer tax breaks or credits to help ease the burden for homeowners.
Let’s Talk Property Taxes (Without the Headache)
So, what are property taxes, exactly? Basically, they’re what you pay to help fund local stuff like public schools, road repairs, and emergency services. How much you owe depends on two things: what your home is assessed to be worth, and your local tax rate.
Quick Example:
Got a home valued at $300,000 and a tax rate of 1%? Your yearly tax bill would be $3,000.
What Affects Your Property Taxes?
- Assessed Value: This is what the local tax assessor says your home is worth for tax purposes. It’s not always the same as market value and can change based on your home’s condition, location, or even what similar homes nearby have sold for.
- Local Tax Rates: These are set by city or county governments and can vary even within the same state. They might go up or down depending on budgets or if voters approve new measures.
How to Keep Property Taxes in Check
You’ve got some options if you’re looking to save a little or at least make sense of your tax bill:
- Stay in the loop: Check your property assessment regularly so you’re not caught off guard.
- Speak up: Think your home was overvalued? You can file an appeal with the local assessor’s office.
- Look for breaks: Some states or counties offer exemptions for things like your primary residence, being a senior, or military service. Definitely worth checking out.
States Ranked by Property Tax Rates (2025)
- Hawaii – 0.27%
- Alabama – 0.39%
- Colorado – 0.49%
- Nevada – 0.50%
- Louisiana – 0.55%
- South Carolina – 0.56%
- District of Columbia – 0.57%
- Delaware – 0.57%
- West Virginia – 0.58%
- Wyoming – 0.58%
- Arkansas – 0.61%
- Utah – 0.63%
- New Mexico – 0.65%
- Mississippi – 0.65%
- Tennessee – 0.66%
- Idaho – 0.69%
- Arizona – 0.72%
- Missouri – 0.73%
- Montana – 0.74%
- Kentucky – 0.78%
- California – 0.76%
- Indiana – 0.76%
- Florida – 0.83%
- North Carolina – 0.84%
- Virginia – 0.85%
- Oregon – 0.90%
- Washington – 0.93%
- Georgia – 0.94%
- Oklahoma – 0.97%
- Alaska – 1.02%
- North Dakota – 1.05%
- Minnesota – 1.08%
- Pennsylvania – 1.09%
- Texas – 1.10%
- Kansas – 1.14%
- Michigan – 1.31%
- Nebraska – 1.36%
- Wisconsin – 1.53%
- Iowa – 1.57%
- Rhode Island – 1.63%
- Massachusetts – 1.63%
- Ohio – 1.56%
- Vermont – 1.76%
- Connecticut – 1.79%
- New Hampshire – 1.93%
- Illinois – 2.08%
- New Jersey – 2.23%
Knowing how each state stacks up in terms of property taxes can help homeowners and buyers get a clearer picture of what to expect—and make smarter choices about where to live or invest.
Just a heads-up: We aren’t a financial or tax advisor. This info is meant to be helpful, but it’s not professional advice. For anything specific to your situation, it’s best to chat with a licensed tax pro or financial advisor.
