Property taxes by state in 2026
Property tax is the line most affordability calculators fake with a national average, and it is the one that varies most. The spread runs from 0.29% in Hawaii to 1.88% in Illinois. On a $400,000 home that is a difference of about $530 a month, every month, forever.
Why it changes what you can afford, not just what you pay
Property tax is collected monthly through escrow, so it comes out of the same budget as principal and interest. A dollar of tax is a dollar you cannot spend on mortgage payment, which means it directly reduces the loan you can carry. At current rates, the gap between the highest and lowest state rates is worth roughly $80,000 of purchasing power on a typical loan.
This is why two households with identical incomes in different states are not shopping in the same price bracket — and why "no income tax" states are not automatically cheaper. Texas has no income tax and an effective property rate of 1.4%. California taxes income heavily and charges 0.7%. For a homebuyer, the second can easily beat the first.
Effective rates, all 50 states and DC
The monthly column shows what the rate costs on the maximum home price a $75,000 single earner could afford in that state, so it reflects a realistic purchase there rather than an abstract percentage.
| State | Effective rate | Tax/mo on a typical local purchase | Avg insurance/yr |
|---|---|---|---|
| Illinois | 1.88% | $189 | $2,802 |
| New Jersey | 1.88% | $197 | $1,449 |
| Connecticut | 1.54% | $164 | $2,132 |
| Vermont | 1.51% | $167 | $1,017 |
| New Hampshire | 1.5% | $172 | $1,324 |
| Nebraska | 1.44% | $143 | $5,513 |
| Texas | 1.4% | $149 | $4,582 |
| Ohio | 1.36% | $147 | $2,109 |
| Iowa | 1.33% | $143 | $3,148 |
| Wisconsin | 1.32% | $145 | $1,836 |
| New York | 1.3% | $141 | $1,844 |
| Pennsylvania | 1.26% | $139 | $1,434 |
| Kansas | 1.21% | $121 | $5,289 |
| Michigan | 1.19% | $127 | $3,071 |
| Rhode Island | 1.12% | $123 | $2,379 |
| Massachusetts | 1% | $110 | $2,112 |
| Minnesota | 1% | $108 | $3,333 |
| South Dakota | 1% | $113 | $3,740 |
| Maine | 0.98% | $111 | $1,299 |
| Alaska | 0.94% | $114 | $1,492 |
| Maryland | 0.92% | $99 | $2,242 |
| North Dakota | 0.92% | $107 | $2,846 |
| Missouri | 0.89% | $97 | $3,783 |
| Oregon | 0.81% | $88 | $1,647 |
| Georgia | 0.79% | $90 | $2,301 |
| Oklahoma | 0.79% | $83 | $5,378 |
| Florida | 0.78% | $80 | $8,471 |
| Virginia | 0.78% | $89 | $1,939 |
| Indiana | 0.76% | $85 | $2,869 |
| Washington | 0.75% | $91 | $1,766 |
| Kentucky | 0.74% | $80 | $4,471 |
| California | 0.7% | $81 | $1,653 |
| North Carolina | 0.66% | $74 | $3,799 |
| New Mexico | 0.63% | $72 | $3,497 |
| Montana | 0.61% | $69 | $3,221 |
| Mississippi | 0.58% | $67 | $2,602 |
| Arkansas | 0.56% | $64 | $3,195 |
| District of Columbia | 0.56% | $66 | $1,558 |
| Louisiana | 0.55% | $61 | $5,185 |
| Delaware | 0.54% | $64 | $1,461 |
| Wyoming | 0.53% | $66 | $2,075 |
| Tennessee | 0.52% | $63 | $3,198 |
| West Virginia | 0.51% | $61 | $1,961 |
| Colorado | 0.5% | $54 | $5,511 |
| Idaho | 0.5% | $59 | $2,412 |
| Nevada | 0.5% | $63 | $1,876 |
| South Carolina | 0.49% | $57 | $2,870 |
| Arizona | 0.48% | $58 | $2,397 |
| Utah | 0.48% | $57 | $1,771 |
| Alabama | 0.37% | $42 | $3,716 |
| Hawaii | 0.29% | $36 | $738 |
What "effective rate" means, and why mill rates mislead
An effective rate is simply total tax paid divided by market value. It is the honest number, because the published mill rate on its own tells you very little: jurisdictions assess at different fractions of market value, apply different exemptions, and stack county, city, school district and special levies on top of each other. Two towns quoting the same mill rate can produce bills that differ by half.
Which brings us to the caveat that matters most on this page.
Your county matters more than your state
State averages conceal enormous local variation. Illinois averages 1.88%, but Lake County runs closer to 2.55%. Texas averages 1.4%, while Bexar County is nearer 1.95% and Travis County about 1.60%. Ohio averages 1.36% and Cuyahoga County is around 2.00%.
Use the state figure to compare regions. Use the actual tax bill for the actual property before you make an offer — it is public record, the listing usually shows it, and the county assessor's site always does. Our calculator includes county estimates for major metros and lets you type the real number straight over the estimate, which is what you should do once you have a specific house in mind.
Three things that change your bill after you buy
Reassessment. Many jurisdictions reassess on sale, so the previous owner's bill may understate what you will pay. If they held the home for twenty years under a cap, your first bill can be a shock. Ask what the assessed value will be after the sale, not what it is now.
Homestead exemptions. Most states reduce the taxable value of a primary residence, and several cap how fast assessments can rise for owner-occupants. These are rarely automatic — you usually have to file, and the deadline is often early in the year following purchase. It is one form for a permanent discount, and people miss it constantly.
Appeals. If the assessment exceeds what the house would sell for, you can contest it. The process is administrative rather than legal, the evidence is comparable sales, and success lowers your bill for years rather than once. Deadlines are short and strictly enforced, so diary the date when your assessment notice arrives.
Insurance moves with it
The final column is a reminder that tax is not the only escrow line. Homeowners insurance ranges from about $738 a year in Hawaii to $8,471 in Florida for the same coverage. A state can have low property tax and punishing insurance, and your escrow payment feels the sum of both. Both are in the calculator for that reason.
Common questions
Which state has the highest property taxes?
Illinois and New Jersey share the highest effective rate at 1.88% of home value. Hawaii has the lowest at 0.29%. On a $400,000 home that gap is roughly $530 a month.
How much do property taxes affect what house I can afford?
Substantially. Property tax is escrowed and paid monthly alongside the mortgage, so it competes directly with principal and interest. The difference between the highest and lowest state rates is worth roughly $80,000 of buying power on a typical loan at current rates.
What is an effective property tax rate?
Total annual property tax paid divided by the market value of the home, expressed as a percentage. It is more useful than a published mill rate because it accounts for assessment ratios, exemptions and local levies that vary between jurisdictions.