New Jersey has the highest property taxes in the U.S. in 2026 with an effective rate of about 2.23% of home value, followed by Illinois, Connecticut, New Hampshire, and Vermont. Hawaii has the lowest at just 0.29%, ahead of Alabama, Colorado, and Nevada. The national average is roughly 0.99%. Here are property tax rates for every state.
Property Taxes by State in 2026
New Jersey has the highest property taxes in the country in 2026, with an effective rate of about 2.23% of a home's value per year. Illinois (2.07%), Connecticut (1.92%), New Hampshire (1.89%), and Vermont (1.83%) follow. At the low end, Hawaii charges just 0.29% — roughly one-seventh New Jersey's rate. On a $400,000 home, that's the difference between about $8,900 a year (New Jersey) and $1,160 (Hawaii).
The "effective rate" is property tax paid as a percentage of a home's market value — the fairest way to compare states, since home prices differ so much. Hover or tap any state on the map to see its rate.
10 States With the Highest Property Taxes (2026)
| Rank | State | Effective Rate | Tax on a $400K Home |
|---|---|---|---|
| 1 | New Jersey | 2.23% | $8,920 |
| 2 | Illinois | 2.07% | $8,280 |
| 3 | Connecticut | 1.92% | $7,680 |
| 4 | New Hampshire | 1.89% | $7,560 |
| 5 | Vermont | 1.83% | $7,320 |
| 6 | Texas | 1.68% | $6,720 |
| 7 | New York | 1.64% | $6,560 |
| 8 | Nebraska | 1.63% | $6,520 |
| 9 | Wisconsin | 1.61% | $6,440 |
| 10 | Ohio | 1.59% | $6,360 |
Several high-tax states — Texas and New Hampshire in particular — have no state income tax, and they make up the difference through property taxes. That trade-off can still be a net win for high earners, but it hits homeowners on fixed incomes hardest. See how the full tax picture affects take-home value in our cost of living by state rankings.
10 States With the Lowest Property Taxes (2026)
| Rank | State | Effective Rate | Tax on a $400K Home |
|---|---|---|---|
| 50 | Hawaii | 0.29% | $1,160 |
| 49 | Alabama | 0.40% | $1,600 |
| 48 | Colorado | 0.49% | $1,960 |
| 47 | Nevada | 0.49% | $1,960 |
| 46 | South Carolina | 0.53% | $2,120 |
| 45 | Louisiana | 0.55% | $2,200 |
| 44 | Wyoming | 0.55% | $2,200 |
| 43 | Utah | 0.56% | $2,240 |
| 42 | Delaware | 0.57% | $2,280 |
| 41 | West Virginia | 0.57% | $2,280 |
A low rate doesn't always mean a low bill. Hawaii's 0.29% rate is the nation's lowest, but because its median home price is the highest in the country, the dollar amount a typical homeowner pays lands closer to the middle of the pack. That's why it's worth comparing both the rate and the actual dollars paid.
Rate vs. Dollars: Two Ways to Read Property Tax
There are two honest ways to rank property taxes, and they can tell different stories:
- Effective rate (used above) — tax as a share of home value. Best for comparing the tax "policy" of each state independent of housing prices. New Jersey and Illinois lead.
- Median dollars paid — the actual annual bill on a typical home. High-price states like New Jersey, New York, Connecticut, and California climb here because their homes are expensive, even where rates are moderate.
If you're deciding where to buy, the dollars-paid view matters most for your budget — but the rate tells you how a state would tax any home you own there.
Explore the Data
- Property Tax Rate By State (interactive map)
- Property Tax Paid By State (median dollars)
- Median Home Price By State
- Cheapest States to Buy a House (2026)
- Cost of Living by State (2026)
- Median Household Income By State
Frequently Asked Questions
Which state has the highest property taxes in 2026?
New Jersey, with an effective rate of about 2.23% of home value per year. Illinois and Connecticut are the next highest.
Which state has the lowest property taxes in 2026?
Hawaii, at just 0.29% — the lowest effective rate in the nation — though its high home prices keep the dollar bill from being the smallest. Alabama has both a low rate (0.40%) and low home values, giving it one of the smallest actual bills.
Why are New Jersey's property taxes so high?
New Jersey funds schools and local services heavily through property taxes rather than other levies, and it has many small, independent municipalities and school districts, each with its own levy. The result is the highest effective rate in the country.
Can I lower my property tax bill?
Sometimes. Many states offer homestead exemptions, senior or veteran reductions, and formal assessment appeals if you believe your home is overvalued. The rules vary by state and county, so check your local assessor's office.
Methodology & Sources
Effective property tax rates are 2026 estimates aligned with the Tax Foundation's state property-tax analysis and U.S. Census Bureau American Community Survey data, expressed as annual property taxes paid divided by home value. The "tax on a $400K home" column applies each state's effective rate to a common $400,000 home for comparison and does not reflect local exemptions or assessment ratios. Actual bills vary by county, municipality, and property, and by exemptions you may qualify for.
Frequently Asked Questions
New Jersey has the highest property taxes in 2026, with an effective rate of about 2.23% of a home’s value per year. Illinois (2.07%) and Connecticut (1.92%) are close behind. On a typical home, New Jersey homeowners pay several thousand dollars more per year than the national average.
Hawaii has the lowest effective property tax rate at about 0.29% of home value, followed by Alabama (0.40%), Colorado (0.49%), and Nevada (0.49%). Note that Hawaii’s very high home prices mean the dollar bill can still be sizable despite the low rate.
The U.S. average effective property tax rate in 2026 is about 0.99% of a home’s value per year. Rates range from under 0.30% in Hawaii to over 2.2% in New Jersey — a roughly 7x difference.
Often, yes. States without an income tax — such as Texas, New Hampshire, and Florida — tend to lean more heavily on property and sales taxes to fund services. Texas and New Hampshire both rank among the highest for property tax rates, while Florida and Nevada stay moderate to low.
