Property Taxes by State

Each state decides its own property tax rate, and the rates vary widely across the country. Depending on which state you live in, your property tax rate could be lower than 0.5% or higher than 2%. Read on to find out which states have the highest and lowest property tax rates, and which states offer property tax exemptions to homeowners who qualify.

Jennifer Schell Headshot
  • Written By
    Jennifer Schell

    Jennifer Schell

    Financial Writer

    Jennifer Schell joined Annuity.org in 2022. She is a professional writer with more than three years of experience creating content for a variety of industries ranging from travel to tax accounting. She combines her strong writing skills and her passion for educating others to write engaging and informative financial content for Annuity.org.

    Read More
  • Edited By
    Lamia Chowdhury
    Lamia Chowdhury

    Lamia Chowdhury

    Financial Editor

    Lamia Chowdhury is a financial editor at Annuity.org. Lamia carries an extensive skillset in the content marketing field, and her work as a copywriter spans industries as diverse as finance, health care, travel and restaurants.

    Read More
  • Financially Reviewed By
    Thomas J. Brock, CFA®, CPA
    Thomas Brock, CFA, CPA, expert contributor to Annuity.org

    Thomas J. Brock, CFA®, CPA

    Investment Management and Finance Professional

    Thomas Brock, CFA®, CPA, is a financial professional with over 20 years of experience in investments, corporate finance and accounting. He currently oversees the investment operation for a $4 billion super-regional insurance carrier.

    Read More
  • Updated: September 20, 2022
  • This page features 8 Cited Research Articles
Fact Checked
Fact Checked

Annuity.org partners with outside experts to ensure we are providing accurate financial content.

These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times.

Our expert reviewers review our articles and recommend changes to ensure we are upholding our high standards for accuracy and professionalism.

Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments.

Cite Us
How to Cite Annuity.org's Article

APA Schell, J. (2022, September 20). Property Taxes by State. Annuity.org. Retrieved September 22, 2022, from https://www.annuity.org/personal-finance/taxes/property/taxes-by-state/

MLA Schell, Jennifer. "Property Taxes by State." Annuity.org, 20 Sep 2022, https://www.annuity.org/personal-finance/taxes/property/taxes-by-state/.

Chicago Schell, Jennifer. "Property Taxes by State." Annuity.org. Last modified September 20, 2022. https://www.annuity.org/personal-finance/taxes/property/taxes-by-state/.

Property taxes are determined at the state and county levels, so how much you’ll pay in property taxes depends largely on where you live. In some states, an equalization requirement ensures that taxes are imposed uniformly throughout the state, while other states may have different tax rates in each county.

Which States Have the Highest Property Taxes?

The state with the highest property tax rate in 2019 was New Jersey at 2.13%. Second and third place went to Illinois with a 1.97% tax rate and New Hampshire at 1.89%. Vermont, Connecticut, Texas and Nebraska also had property tax rates higher than most of the country.

Some states such as Texas and New Hampshire rely heavier on property taxes than other forms of taxation like state income tax, which is why they are ranked high. In other states like New Jersey and Illinois, higher property tax rates are matched by higher rates of other taxes.

Living in a state with higher property taxes can have its benefits. These taxes are generally allocated towards community resources such as schools, libraries and fire departments. Having well-funded community programs like these can take the sting out of paying higher property taxes.

Which States Have the Lowest Property Taxes?

In 2019, taxpayers in Hawaii had the lowest property tax rates of anywhere in the country at just 0.31%. The next lowest states were Alabama at 0.37% and Louisiana and Wyoming, both at 0.51%.

Generally, the states with lower property tax rates tend to be those in the southern and western parts of the country. The biggest exception to this rule is Hawaii, which has the lowest property tax rate in the country. However, Hawaii also has the highest median home value in the country, so homeowners’ property tax bills in the Aloha State are likely higher than those in the other states listed.

Living in a state with lower property taxes has the clear benefit of reducing the burden of homeownership on taxpayers. This can be especially crucial for young or lower-income home buyers looking to break into the housing market for the first time.

Highest and Lowest Property Taxes by State
Highest Property Tax Rate States:Lowest Property Tax Rate States:
#1 New Jersey – 2.13%#1 Hawaii – 0.31%
#2 Illinois – 1.97%#2 Alabama – 0.36%
#3 New Hampshire – 1.89%#3 Louisiana – 0.51%
#4 Vermont – 1.76%#4 Wyoming – 0.51%
#5 Connecticut – 1.73%#5 Colorado – 0.52%
#6 Texas – 1.60%#6 West Virginia – 0.53%
#7 Nebraska – 1.54%#7 South Carolina – 0.53%
#8 Wisconsin – 1.53%#8 Utah – 0.56%
#9 Ohio – 1.52%#9 Nevada – 0.56%
#10 Iowa – 1.43%#10 Delaware – 0.59%
Source: Tax Foundation
Advertisement

Which States Have Property Tax Exemptions

Every state offers some form of property tax exemption, which can be applied to your property tax bill to lower the amount you owe. The types of exemptions and their values vary by state and county.

The most common property tax exemption is the homestead exemption. Forty-six states offer this exemption on the taxpayer’s primary residence. The exemption protects a portion of the home’s assessed value from being taxed, which lowers the overall tax liability of the property.

States with No Property Tax on Cars

In addition to taxes on real estate property, which refers to commercial and residential buildings, many states also levy property taxes on vehicles such as cars and trucks. There are 23 states that do not have vehicle property taxes.

States with No Vehicle Property Tax
  • Alaska
  • Delaware
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Maryland
  • New Jersey
  • New Mexico
  • New York
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Washington
  • Wisconsin

States with No Property Tax for Seniors

Many states have property tax exemptions for homeowners over 65, and 12 states offer 100% exemptions or tax relief programs for older Americans.

States with No Property Tax for Seniors
  • Alabama
  • Alaska
  • Florida
  • Georgia
  • Hawaii
  • Mississippi
  • New Hampshire
  • New York
  • South Carolina
  • South Dakota
  • Texas
  • Washington

States with No Property Tax for Veterans

While all 50 states offer some form of property tax exemption for veterans, there are 17 states with 100% exemptions for disabled veterans, meaning that these individuals do not pay property taxes.

States with No Property Tax for Disabled Veterans
  • Alabama
  • Arkansas
  • Florida
  • Hawaii
  • Illinois
  • Iowa
  • Maryland
  • Michigan
  • Nebraska
  • New Hampshire
  • New Jersey
  • New Mexico
  • Oklahoma
  • Pennsylvania
  • South Carolina
  • Texas
  • Virginia
Advertisement

Connect With a Financial Advisor Instantly

Our free tool can help you find an advisor who serves your needs. Get matched with a financial advisor who fits your unique criteria. Once you’ve been matched, consult for free with no obligation.

Please seek the advice of a qualified professional before making financial decisions.
Last Modified: September 20, 2022
Advertisement

8 Cited Research Articles

Annuity.org writers adhere to strict sourcing guidelines and use only credible sources of information, including authoritative financial publications, academic organizations, peer-reviewed journals, highly regarded nonprofit organizations, government reports, court records and interviews with qualified experts. You can read more about our commitment to accuracy, fairness and transparency in our editorial guidelines.

  1. Cammenga, J. (2021, July 7). How High Are Property Taxes in Your State? Retrieved from https://taxfoundation.org/high-state-property-taxes-2021/
  2. Christensen, K. (2021, November 23). Are There Any States with No Property Tax in 2022? Retrieved from https://realwealth.com/learn/states-with-no-property-tax/
  3. Hogan, M. (2017, July 27). The Benefits of Property Taxes. Retrieved from https://pocketsense.com/benefits-property-taxes-6385432.html
  4. Kiernan, J. (2022, March 2). 2022’s Property Taxes by State. Retrieved from https://wallethub.com/edu/states-with-the-highest-and-lowest-property-taxes/11585
  5. Moreno, T. (2022, February 8). The Best and Worst Property Taxes by State. Retrieved from https://www.thebalance.com/best-and-worst-states-for-property-taxes-3193328
  6. Quicken Loans. (2021, January 14). Homestead Exemption: How It Works and if You Can Qualify. Retrieved from https://www.quickenloans.com/learn/homestead-exemption
  7. Reese, B. (2022, January 23). 17 States with Full Property Tax Exemption for 100 Disabled Veterans (The Definitive Guide). Retrieved from https://vaclaimsinsider.com/property-tax-exemption-for-100-disabled-veterans/
  8. Solomon, M. (2016, October 3). Why It’s Always Been Expensive To Buy a Home in Hawaii. Retrieved from https://www.hawaiipublicradio.org/general-assignment/2016-10-03/why-its-always-been-expensive-to-buy-a-home-in-hawaii#stream/0