Property taxes by state are a significant expense for homeowners, and they can vary widely depending on location. We already covered the states with the highest property taxes, but what’s with the rest of the states?
In this guide, we’ll break down property taxes by state in 2024, helping you understand what you can expect and how to navigate these numbers.
What are Property Taxes?
Property taxes are levied by local governments to fund essential services like schools, roads, and police.
The amount you pay is based on the assessed value of your property, which is a percentage of its estimated market value. Property tax rates are also factored in, which are set by your local municipality.
State-by-State Breakdown
New Jersey has the highest effective property tax rate (2.21%) and the average property taxes paid ($10,409). Hawaii has the lowest effective property tax rate (0.29%). Alaska, Louisiana, and South Carolina also have low effective property tax rates.
There are no states without property taxes, but some parts of Alaska have no property taxes.
Counties with the Highest Property Taxes
While state averages provide a general idea, drilling down to the county level reveals even greater variations. Here’s a table highlighting counties with the highest reported average property taxes, exceeding $10,000 according to the U.S. Census Bureau (2022).
It’s important to note that this only reflects the absolute amount of property tax paid and doesn’t include the effective tax rate due to limitations in available data.
Property Taxes by State
| State | Property Tax (2024 Q1) |
| Alabama | 3,627,949 |
| Alaska | 342,355 |
| Arizona | 5,167,301 |
| Arkansas | 2,676,097 |
| California | 63,977,151 |
| Colorado | 2,766,177 |
| Connecticut | 5,807,804 |
| Delaware | 1,670,196 |
| Florida | 15,518,556 |
| Georgia | 7,572,262 |
| Hawaii | 2,522,513 |
| Idaho | 1,948,615 |
| Illinois | 15,278,528 |
| Indiana | 7,201,391 |
| Iowa | 3,180,377 |
| Kansas | 3,333,570 |
| Kentucky | 4,068,907 |
| Louisiana | 3,208,771 |
| Maine | 1,228,878 |
| Maryland | 6,921,016 |
| Massachusetts | 10,207,010 |
| Michigan | 7,497,092 |
| Minnesota | 8,223,323 |
| Mississippi | 2,394,503 |
| Missouri | 4,466,223 |
| Montana | 1,116,245 |
| Nebraska | 2,179,988 |
| Nevada | 3,762,795 |
| New Hampshire | 1,099,655 |
| New Jersey | 12,140,062 |
| New Mexico | 3,131,809 |
| New York | 35,230,723 |
| North Carolina | 9,634,986 |
| North Dakota | 1,404,413 |
| Ohio | 8,671,297 |
| Oklahoma | 2,917,306 |
| Oregon | 1,968,091 |
| Pennsylvania | 15,044,403 |
| Rhode Island | 1,024,597 |
| South Carolina | 4,120,924 |
| South Dakota | 650,194 |
| Tennessee | 5,364,832 |
| Texas | 20,870,157 |
| Utah | 3,382,204 |
| Vermont | 807,754 |
| Virginia | 8,711,276 |
| Washington | 9,704,026 |
| West Virginia | 1,534,611 |
| Wisconsin | 5,160,039 |
| Wyoming | 688,692 |
Data source: U.S. Census Bureau (2024).
Important Factors to Consider
While state averages provide a general idea, several factors can influence your property tax bill:
- Local property tax rates: Tax rates can vary significantly within a state, so it’s necesarry to research rates specific to your city or county.
- School district taxes: School districts often levy additional property taxes to fund education. The quality of your local schools can significantly impact these taxes.
- Property value: The assessed value of your property is a major determinant of your tax bill. Understanding how your property is valued and potentially appealing an assessment if needed can be beneficial.
Navigating Property Taxes by State
Here are some tips that will help you manage your property taxes:
- Research your property tax rate: Knowing your local rate is the first step to budgeting and potentially comparing rates with neighboring areas.
- Review your assessment: Ensure your property is assessed accurately. If you believe the valuation is incorrect, you may be able to file an appeal.
- Explore tax relief programs: Many states and municipalities offer tax relief programs for seniors, veterans, and low-income residents. Look into these programs to see if you qualify.
Property Taxes by State: The Bottom Line
Understanding property taxes by state is important for homeowners as these taxes can significantly impact your overall financial planning. This blog has provided a comprehensive breakdown of property taxes across different states in 2024, highlighting the wide variations in tax rates and average payments.
We’ve delved into not just state averages, but also county-level data to give you a clearer picture of property tax landscapes.
Remember, while state averages are helpful, local factors such as municipal rates, school district taxes, and property valuations are critical components that influence your specific tax situation.
To effectively navigate property taxes, it’s essential to stay informed about your local tax rates, so review your property assessments regularly, and take advantage of any available tax relief programs. Therefore, by understanding these elements, you can better manage your property tax obligations and make informed decisions about where to live and how to budget for homeownership expenses.
And if you do not understand taxes, it’s advisable to talk to a financial advisor.
