Effective property tax rates (taxes actually paid ÷ home value) vary nearly 7× across states. Figures below are approximate effective rates on owner-occupied housing compiled from Tax Foundation analyses of Census data (2022–2023 vintage); local rates within a state vary further.
Highest effective rates (approx.)
| State | Effective rate | Tax on $400k home |
|---|---|---|
| New Jersey | ≈2.2% | $8,800/yr |
| Illinois | ≈2.1% | $8,400/yr |
| Connecticut | ≈1.8% | $7,200/yr |
| New Hampshire | ≈1.6% | $6,400/yr |
| Texas | ≈1.5% | $6,000/yr |
Lowest effective rates (approx.)
| State | Effective rate | Tax on $400k home |
|---|---|---|
| Hawaii | ≈0.3% | $1,200/yr |
| Alabama | ≈0.4% | $1,600/yr |
| Colorado | ≈0.5% | $2,000/yr |
| Nevada | ≈0.5% | $2,000/yr |
| South Carolina | ≈0.5% | $2,000/yr |
What it means
Low-property-tax states often tax elsewhere (Texas: high property tax, no income tax; Hawaii: low property tax, high income tax). For affordability, model the full PITI payment, not the sticker price.
FAQ
Which state has the highest property taxes?
New Jersey, at roughly 2.2% effective — about $9,000/year on a $400,000 home.
Which state has the lowest?
Hawaii, around 0.3% effective — though home prices there are among the nation’s highest.
Why do these differ from my bill?
These are statewide effective averages; your county, city, school district, and exemptions set your actual bill.
Sources
- Tax Foundation analyses of U.S. Census American Community Survey data (2022–2023), rounded
Figures compiled and rounded July 2026. Cite this page: “Property Tax Rates by State: Highest & Lowest, CalcYard” with a link.