Property Tax Rates by State: Complete 2026 Guide
Property taxes range from 0.27% in Hawaii to 2.23% in New Jersey. See every state's rate and how it affects your mortgage payment.
Property taxes vary enormously by state — from 0.27% in Hawaii to 2.23% in New Jersey. On a $400,000 home, that is the difference between $1,080 and $8,920 per year, or $90 versus $743 per month added to your housing payment. Property tax is often the second-largest component of your monthly payment after principal and interest, and it is the cost most buyers underestimate.
All 50 States: Property Tax Rates and Annual Tax on a $400,000 Home
| State | Effective Rate | Annual Tax ($400K) | State | Effective Rate | Annual Tax ($400K) |
|---|---|---|---|---|---|
| Alabama | 0.37% | $1,480 | Montana | 0.74% | $2,960 |
| Alaska | 1.07% | $4,280 | Nebraska | 1.63% | $6,520 |
| Arizona | 0.62% | $2,480 | Nevada | 0.53% | $2,120 |
| Arkansas | 0.62% | $2,480 | New Hampshire | 1.86% | $7,440 |
| California | 0.71% | $2,840 | New Jersey | 2.23% | $8,920 |
| Colorado | 0.49% | $1,960 | New Mexico | 0.67% | $2,680 |
| Connecticut | 1.96% | $7,840 | New York | 1.62% | $6,480 |
| Delaware | 0.53% | $2,120 | North Carolina | 0.80% | $3,200 |
| Florida | 0.89% | $3,560 | North Dakota | 0.94% | $3,760 |
| Georgia | 0.83% | $3,320 | Ohio | 1.53% | $6,120 |
| Hawaii | 0.27% | $1,080 | Oklahoma | 0.85% | $3,400 |
| Idaho | 0.63% | $2,520 | Oregon | 0.87% | $3,480 |
| Illinois | 2.08% | $8,320 | Pennsylvania | 1.49% | $5,960 |
| Indiana | 0.81% | $3,240 | Rhode Island | 1.40% | $5,600 |
| Iowa | 1.52% | $6,080 | South Carolina | 0.55% | $2,200 |
| Kansas | 1.33% | $5,320 | South Dakota | 1.14% | $4,560 |
| Kentucky | 0.83% | $3,320 | Tennessee | 0.67% | $2,680 |
| Louisiana | 0.51% | $2,040 | Texas | 1.68% | $6,720 |
| Maine | 1.24% | $4,960 | Utah | 0.58% | $2,320 |
| Maryland | 1.00% | $4,000 | Vermont | 1.83% | $7,320 |
| Massachusetts | 1.15% | $4,600 | Virginia | 0.80% | $3,200 |
| Michigan | 1.38% | $5,520 | Washington | 0.87% | $3,480 |
| Minnesota | 1.08% | $4,320 | West Virginia | 0.55% | $2,200 |
| Mississippi | 0.63% | $2,520 | Wisconsin | 1.61% | $6,440 |
| Missouri | 0.91% | $3,640 | Wyoming | 0.55% | $2,200 |
Top 5 Highest Property Tax States
- New Jersey: 2.23% — A $400,000 home costs $8,920/year in property tax
- Illinois: 2.08% — $8,320/year
- Connecticut: 1.96% — $7,840/year
- New Hampshire: 1.86% — $7,440/year (offset by zero income and sales tax)
- Vermont: 1.83% — $7,320/year
Top 5 Lowest Property Tax States
- Hawaii: 0.27% — $1,080/year
- Alabama: 0.37% — $1,480/year
- Colorado: 0.49% — $1,960/year
- Louisiana: 0.51% — $2,040/year
- Nevada: 0.53% — $2,120/year
How Property Tax Affects Your Monthly Mortgage Payment
Lenders include property tax in your monthly payment through an escrow account. Your total payment is PITI: Principal + Interest + Taxes + Insurance. Here is how property tax rates change your monthly cost on a $400,000 home:
| Property Tax Rate | Annual Tax | Monthly Tax | Total Monthly PITI* |
|---|---|---|---|
| 0.50% (low, e.g., Hawaii) | $2,000 | $167 | $2,427 |
| 1.00% (moderate, e.g., Maryland) | $4,000 | $333 | $2,593 |
| 1.50% (high, e.g., Ohio) | $6,000 | $500 | $2,760 |
| 2.00% (very high, e.g., Illinois) | $8,000 | $667 | $2,927 |
*Assumes $320,000 loan at 6.75%, 30-year fixed, $160/mo insurance.
The difference between living in a 0.50% state and a 2.00% state is $500 per month — $6,000 per year — on the same priced home. Over 30 years, that is $180,000.
How Property Tax Assessments Work
Your property tax bill equals your assessed value multiplied by the local tax rate (millage rate):
Annual Tax = Assessed Value x Tax Rate
Key concepts:
- Assessed value is not the same as market value. Many states assess at a fraction of market value (e.g., 35% in South Carolina).
- Reassessment schedules vary: some counties reassess annually, others every 3-5 years. Your tax can jump suddenly after a reassessment.
- Purchase price trigger: In many states, buying a home triggers a reassessment to the purchase price, so your taxes may be higher than the previous owner's.
Homestead Exemptions
Most states offer homestead exemptions that reduce the taxable value of your primary residence:
- Texas: Mandatory $100,000 school district exemption. Additional $10,000 for 65+ or disabled.
- Florida: Up to $50,000 exemption on primary residence (first $25,000 applies to all taxes, next $25,000 to non-school taxes).
- Georgia: $2,000 standard exemption from state property taxes.
- California: $7,000 exemption (small but automatic for primary residences).
Always file for your homestead exemption — it is free and reduces your tax bill immediately.
How to Appeal Your Assessment
If you believe your assessment is too high:
- Review your assessment notice for errors in square footage, lot size, bedroom count, or condition.
- Research comparable sales — find 3-5 similar recently sold homes in your area that sold for less than your assessed value.
- File a formal appeal with your county assessor or board of review (deadlines vary, typically 30-90 days after notice).
- Attend the hearing with your comparable data. Success rates for appeals average 30-40% nationally.
Property Tax in Your Mortgage Payment (Escrow)
Most lenders require you to escrow property taxes. This means:
- Your monthly payment includes 1/12 of the annual property tax
- The lender holds this money in an escrow account
- The lender pays your property tax bill when it is due
- If taxes increase, your monthly payment increases at the annual escrow analysis
Escrow protects the lender (ensuring taxes are paid) and helps you budget (spreading the annual bill into monthly amounts). Some lenders allow you to opt out of escrow with 20%+ equity, but you must then pay taxes yourself in lump sums.
Practical Takeaway
Property tax is a major — and often underestimated — component of your total housing cost. Before buying, look up the exact property tax for your target home on your county assessor's website, not just the state average. A home in a low-tax township can cost hundreds less per month than an identical home in a neighboring high-tax district. Use our mortgage calculator to include your local property tax rate and see the full PITI payment.
Try it yourself
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Open calculatorThis article is for educational purposes only and does not constitute financial advice. Consult a licensed financial advisor for decisions specific to your situation.