Wallethub recently published a map ranking states based on their property taxes. Property taxes make up a significant part of what homeowners pay each year, but how much you owe depends heavily on where you live. According to a WalletHub study analyzing real‑estate tax rates and median home values across all 50 states and Washington, D.C., there’s a wide gap between the lowest and highest tax burdens in America. Not surprisingly, Idaho (ranked 7th in order from lowest to highest) property taxes are much lower than those in Washington State (ranked 27th).
📊 National Snapshot
- The average U.S. household pays roughly $3,119 per year in property taxes on their home.
- Property taxes also indirectly affect renters, because these costs are reflected in rents and local service funding.
🏡 States with the Lowest Property Tax Burdens
These states have the smallest effective property tax rates and lowest annual tax bills on a typical home:
| Rank | State | Effective Tax Rate | Approx. Annual Tax* |
|——|——-|—————-——|—————-—|
| 1 | Hawaii | 0.27% | ~$888 |
| 2 | Alabama | 0.38% | ~$1,249 |
| 3 | Nevada | 0.47% | ~$1,549 |
| 4 | Arizona | 0.48% | ~$1,585 |
| 4 | Colorado | 0.48% | ~$1,605 |
| 4 | South Carolina | 0.48% | ~$1,607 |
| 7 | Idaho | 0.49% | ~$1,620 |
| 8 | Delaware | 0.50% | ~$1,671 |
| 8 | Tennessee | 0.50% | ~$1,673 |
| 10 | Utah | 0.52% | ~$1,717 |
*These figures represent annual property taxes on a home worth about the national median value.
In these states, homeowners enjoy some of the lowest tax burdens in the country, often due to lower tax rates and/or lower median home prices.
📈 States with the Highest Property Tax Burdens
At the other end of the spectrum, several states stand out for significantly higher property tax rates:
| Rank | State | Effective Tax Rate | Approx. Annual Tax* |
|——|——-|—————-——|—————-—|
| 51 | New Jersey | 2.11% | ~$7,022 |
| 50 | Illinois | 2.01% | ~$6,694 |
| 49 | Connecticut | 1.81% | ~$6,024 |
| 48 | New Hampshire | 1.66% | ~$5,511 |
| 47 | Vermont | 1.59% | ~$5,295 |
| 46 | New York | 1.55% | ~$5,167 |
| 44 | Nebraska | 1.49% | ~$4,949 |
| 44 | Texas | 1.49% | ~$4,961 |
| 43 | Wisconsin | 1.42% | ~$4,734 |
| 42 | Iowa | 1.39% | ~$4,634 |
*Again, these amounts are based on a home valued at roughly the national median.
At the top of the list is New Jersey, where steep property taxes make home ownership significantly more expensive than in most other states. The Chicago area is also known for high property taxes even though it also has an income tax.
📌 Why Property Taxes Vary So Widely
Several factors influence how much homeowners pay:
- Local budgets for schools, police, and infrastructure often rely heavily on property tax revenue.
- States with higher home values can keep rates lower but still collect ample revenue.
- Some states have more exemptions or caps for homeowners, seniors, or veterans.
Because of these variations, two homes with similar market values can result in very different tax bills depending on the state.
📍 Bottom Line
If you’re considering a move or evaluating the long‑term costs of home ownership, taking property tax rates into account — alongside home prices, income taxes, and other cost‑of‑living factors — can make a big difference in your overall financial picture.
See the map here: https://wallethub.com/edu/states-with-the-highest-and-lowest-property-taxes/11585