These States Slap Homeowners With the Highest Property Taxes

Economy

Published: December 12, 2024 9:30 am

Key Points

• With home prices at mortgage rates at historic highs, buying a home has become prohibitively expensive for millions of Americans.
• But the costs associated with home ownership extend well beyond the initial purchase, as local governments across the country depend on revenue generated by property taxes. 
• But exactly how much Americans are paying in property taxes each year depends largely on where they live — and some states are markedly more expensive than others for homeowners.
• Also: 2 Dividend Legends To Hold Forever

Taxes are the lifeblood of every level of American government. As a result, they are virtually unavoidable for anyone who is either making or spending money in the United States.

State and local governments alone collected an average of about $12,250 in revenue for every American in fiscal 2021, the latest year of available data. While much of this came from taxes levied on corporations, individual income, and retail sales, property taxes are the single largest source of tax revenue for state and local governments in the United States.

The revenue generated by property taxes are used to fund public services and infrastructure such as road repairs, schools, libraries, and police and fire departments. According to the Tax Foundation, a non-profit policy advocacy group, nearly one in every three dollars raised by state and local governments come from property taxes.

Property taxes are largely set at the local level, and are paid by homeowners as a specific percentage of the assessed value of their real estate. As a result, exactly how much Americans pay in a given year depends not only on the value of their home, but also on where they live.

Using data from the Tax Foundation, 24/7 Wall St. identified the states where people pay the most in property taxes. States are ranked by the effective property tax rate, or the average amount paid in property taxes as a share of property value in 2022. Supplemental data on per capita property tax collections are also from the Tax Foundation, while median household income, median home value, and home ownership rates are from the U.S. Census Bureau’s 2023 American Community Survey.

Depending on the state, effective property tax rates range from less than .5% of a given home’s value, to more than 2%. While property tax rates can vary within a given state, there are some regional patterns. Each of the 20 states with the lowest effective property tax rates are in the Southern or Western United States. Meanwhile, four of the five states with the highest property taxes are in the Northeast.

It is important to note that a low property tax rate does not necessarily mean reduced revenue for local governments. In Hawaii, for example, the effective property tax rate of 0.26% is the lowest in the country. However, the median home value in Hawaii is $846,400, and partially as a result, a typical homeowner in the state could reasonably expect to pay about $2,170 in property taxes per year. Meanwhile, lower home values in Arkansas, a state where property is taxed at twice the rate it is in Hawaii, means that a typical homeowner pays only about $1,040 per year in property taxes. (Here is a look at the states with the most retirement-friendly tax policies.)

Why It Matters

For a majority of local governments in the United States, property taxes are the leading source of revenue. Unlike income taxes, which are levied at the state and federal levels, property taxes are largely determined by local governments, and partially as a result, they vary considerably across the country. In some states, annual per capita property tax collections are only a few hundred dollars, while in others they are well over $3,000.

• Effective property tax rate: 0.26% of home value
• Annual state and local property tax collections: $1,608 per capita (23rd lowest of 50 states)
• Median home value: $846,400 (the highest of 50 states)
• Homeownership rate: 62.4% (5th lowest of 50 states)
• Median household income: $95,322 (6th highest of 50 states)

• Effective property tax rate: 0.36% of home value
• Annual state and local property tax collections: $658 per capita (the lowest of 50 states)
• Median home value: $216,600 (8th lowest of 50 states)
• Homeownership rate: 70.1% (14th highest of 50 states)
• Median household income: $62,212 (7th lowest of 50 states)

• Effective property tax rate: 0.44% of home value
• Annual state and local property tax collections: $1,209 per capita (14th lowest of 50 states)
• Median home value: $441,100 (9th highest of 50 states)
• Homeownership rate: 60.4% (3rd lowest of 50 states)
• Median household income: $76,364 (22nd highest of 50 states)

• Effective property tax rate: 0.45% of home value
• Annual state and local property tax collections: $1,244 per capita (16th lowest of 50 states)
• Median home value: $411,200 (15th highest of 50 states)
• Homeownership rate: 67.7% (24th lowest of 50 states)
• Median household income: $77,315 (20th highest of 50 states)

• Effective property tax rate: 0.45% of home value
• Annual state and local property tax collections: $2,066 per capita (15th highest of 50 states)
• Median home value: $550,300 (5th highest of 50 states)
• Homeownership rate: 65.7% (14th lowest of 50 states)
• Median household income: $92,911 (9th highest of 50 states)

• Effective property tax rate: 0.46% of home value
• Annual state and local property tax collections: $1,368 per capita (18th lowest of 50 states)
• Median home value: $272,900 (21st lowest of 50 states)
• Homeownership rate: 72.4% (7th highest of 50 states)
• Median household income: $67,804 (11th lowest of 50 states)

• Effective property tax rate: 0.47% of home value
• Annual state and local property tax collections: $1,097 per capita (10th lowest of 50 states)
• Median home value: $428,600 (10th highest of 50 states)
• Homeownership rate: 72.5% (6th highest of 50 states)
• Median household income: $74,942 (24th highest of 50 states)

• Effective property tax rate: 0.47% of home value
• Annual state and local property tax collections: $1,221 per capita (15th lowest of 50 states)
• Median home value: $517,700 (6th highest of 50 states)
• Homeownership rate: 70.1% (14th highest of 50 states)
• Median household income: $93,421 (8th highest of 50 states)

• Effective property tax rate: 0.48% of home value
• Annual state and local property tax collections: $1,097 per capita (9th lowest of 50 states)
• Median home value: $359,700 (20th highest of 50 states)
• Homeownership rate: 73.6% (3rd highest of 50 states)
• Median household income: $81,361 (16th highest of 50 states)

• Effective property tax rate: 0.48% of home value
• Annual state and local property tax collections: $921 per capita (4th lowest of 50 states)
• Median home value: $307,300 (24th lowest of 50 states)
• Homeownership rate: 67.3% (22nd lowest of 50 states)
• Median household income: $67,631 (9th lowest of 50 states)

• Effective property tax rate: 0.51% of home value
• Annual state and local property tax collections: $996 per capita (7th lowest of 50 states)
• Median home value: $215,600 (7th lowest of 50 states)
• Homeownership rate: 68.1% (22nd highest of 50 states)
• Median household income: $58,229 (3rd lowest of 50 states)

• Effective property tax rate: 0.53% of home value
• Annual state and local property tax collections: $831 per capita (2nd lowest of 50 states)
• Median home value: $195,700 (3rd lowest of 50 states)
• Homeownership rate: 66.2% (16th lowest of 50 states)
• Median household income: $58,700 (4th lowest of 50 states)

• Effective property tax rate: 0.55% of home value
• Annual state and local property tax collections: $1,080 per capita (8th lowest of 50 states)
• Median home value: $163,700 (the lowest of 50 states)
• Homeownership rate: 73.5% (4th highest of 50 states)
• Median household income: $55,948 (2nd lowest of 50 states)

• Effective property tax rate: 0.55% of home value
• Annual state and local property tax collections: $2,156 per capita (13th highest of 50 states)
• Median home value: $298,700 (23rd lowest of 50 states)
• Homeownership rate: 71.2% (11th highest of 50 states)
• Median household income: $72,415 (20th lowest of 50 states)

• Effective property tax rate: 0.63% of home value
• Annual state and local property tax collections: $1,116 per capita (11th lowest of 50 states)
• Median home value: $308,600 (25th lowest of 50 states)
• Homeownership rate: 66.3% (19th lowest of 50 states)
• Median household income: $70,804 (17th lowest of 50 states)

• Effective property tax rate: 0.67% of home value
• Annual state and local property tax collections: $936 per capita (5th lowest of 50 states)
• Median home value: $256,300 (16th lowest of 50 states)
• Homeownership rate: 69.3% (18th highest of 50 states)
• Median household income: $62,268 (8th lowest of 50 states)

• Effective property tax rate: 0.68% of home value
• Annual state and local property tax collections: $2,100 per capita (14th highest of 50 states)
• Median home value: $725,800 (2nd highest of 50 states)
• Homeownership rate: 55.9% (2nd lowest of 50 states)
• Median household income: $95,521 (5th highest of 50 states)

• Effective property tax rate: 0.69% of home value
• Annual state and local property tax collections: $1,827 per capita (20th highest of 50 states)
• Median home value: $392,300 (16th highest of 50 states)
• Homeownership rate: 69.2% (19th highest of 50 states)
• Median household income: $70,804 (17th lowest of 50 states)

• Effective property tax rate: 0.70% of home value
• Annual state and local property tax collections: $1,208 per capita (13th lowest of 50 states)
• Median home value: $169,800 (2nd lowest of 50 states)
• Homeownership rate: 71.1% (12th highest of 50 states)
• Median household income: $54,203 (the lowest of 50 states)

• Effective property tax rate: 0.71% of home value
• Annual state and local property tax collections: $1,608 per capita (22nd lowest of 50 states)
• Median home value: $381,000 (18th highest of 50 states)
• Homeownership rate: 68.1% (22nd highest of 50 states)
• Median household income: $73,311 (21st lowest of 50 states)

• Effective property tax rate: 0.71% of home value
• Annual state and local property tax collections: $1,208 per capita (12th lowest of 50 states)
• Median home value: $225,900 (11th lowest of 50 states)
• Homeownership rate: 70.4% (13th highest of 50 states)
• Median household income: $69,477 (14th lowest of 50 states)

• Effective property tax rate: 0.72% of home value
• Annual state and local property tax collections: $1,390 per capita (19th lowest of 50 states)
• Median home value: $323,000 (24th highest of 50 states)
• Homeownership rate: 66.1% (15th lowest of 50 states)
• Median household income: $74,632 (25th highest of 50 states)

• Effective property tax rate: 0.72% of home value
• Annual state and local property tax collections: $1,911 per capita (17th highest of 50 states)
• Median home value: $382,900 (17th highest of 50 states)
• Homeownership rate: 67.8% (25th lowest of 50 states)
• Median household income: $89,931 (11th highest of 50 states)

• Effective property tax rate: 0.74% of home value
• Annual state and local property tax collections: $968 per capita (6th lowest of 50 states)
• Median home value: $211,800 (5th lowest of 50 states)
• Homeownership rate: 68.8% (20th highest of 50 states)
• Median household income: $61,118 (5th lowest of 50 states)

• Effective property tax rate: 0.76% of home value
• Annual state and local property tax collections: $1,895 per capita (18th highest of 50 states)
• Median home value: $576,000 (3rd highest of 50 states)
• Homeownership rate: 63.7% (10th lowest of 50 states)
• Median household income: $94,605 (7th highest of 50 states)

• Effective property tax rate: 0.76% of home value
• Annual state and local property tax collections: $914 per capita (3rd lowest of 50 states)
• Median home value: $208,600 (4th lowest of 50 states)
• Homeownership rate: 65.1% (12th lowest of 50 states)
• Median household income: $62,138 (6th lowest of 50 states)

• Effective property tax rate: 0.77% of home value
• Annual state and local property tax collections: $1,816 per capita (21st highest of 50 states)
• Median home value: $484,800 (7th highest of 50 states)
• Homeownership rate: 63.4% (7th lowest of 50 states)
• Median household income: $80,160 (19th highest of 50 states)

• Effective property tax rate: 0.82% of home value
• Annual state and local property tax collections: $1,333 per capita (17th lowest of 50 states)
• Median home value: $233,600 (12th lowest of 50 states)
• Homeownership rate: 68.8% (20th highest of 50 states)
• Median household income: $68,545 (12th lowest of 50 states)

• Effective property tax rate: 0.95% of home value
• Annual state and local property tax collections: $1,816 per capita (22nd highest of 50 states)
• Median home value: $413,600 (13th highest of 50 states)
• Homeownership rate: 67.9% (24th highest of 50 states)
• Median household income: $98,678 (3rd highest of 50 states)

• Effective property tax rate: 0.96% of home value
• Annual state and local property tax collections: $2,821 per capita (6th highest of 50 states)
• Median home value: $310,700 (25th highest of 50 states)
• Homeownership rate: 74.4% (the highest of 50 states)
• Median household income: $73,733 (22nd lowest of 50 states)

• Effective property tax rate: 0.97% of home value
• Annual state and local property tax collections: $1,567 per capita (21st lowest of 50 states)
• Median home value: $246,700 (15th lowest of 50 states)
• Homeownership rate: 63.7% (10th lowest of 50 states)
• Median household income: $76,525 (21st highest of 50 states)

• Effective property tax rate: 0.98% of home value
• Annual state and local property tax collections: $1,868 per capita (19th highest of 50 states)
• Median home value: $328,600 (23rd highest of 50 states)
• Homeownership rate: 72.0% (9th highest of 50 states)
• Median household income: $85,086 (13th highest of 50 states)

• Effective property tax rate: 1.01% of home value
• Annual state and local property tax collections: $1,648 per capita (24th lowest of 50 states)
• Median home value: $268,200 (19th lowest of 50 states)
• Homeownership rate: 69.4% (17th highest of 50 states)
• Median household income: $71,810 (19th lowest of 50 states)

• Effective property tax rate: 1.04% of home value
• Annual state and local property tax collections: $2,801 per capita (7th highest of 50 states)
• Median home value: $570,800 (4th highest of 50 states)
• Homeownership rate: 62.3% (4th lowest of 50 states)
• Median household income: $99,858 (the highest of 50 states)

• Effective property tax rate: 1.07% of home value
• Annual state and local property tax collections: $2,326 per capita (10th highest of 50 states)
• Median home value: $347,500 (21st highest of 50 states)
• Homeownership rate: 66.3% (19th lowest of 50 states)
• Median household income: $86,631 (12th highest of 50 states)

• Effective property tax rate: 1.23% of home value
• Annual state and local property tax collections: $2,465 per capita (9th highest of 50 states)
• Median home value: $411,800 (14th highest of 50 states)
• Homeownership rate: 64.0% (11th lowest of 50 states)
• Median household income: $84,972 (14th highest of 50 states)

• Effective property tax rate: 1.24% of home value
• Annual state and local property tax collections: $1,662 per capita (25th lowest of 50 states)
• Median home value: $236,100 (13th lowest of 50 states)
• Homeownership rate: 73.7% (2nd highest of 50 states)
• Median household income: $69,183 (13th lowest of 50 states)

• Effective property tax rate: 1.26% of home value
• Annual state and local property tax collections: $1,791 per capita (23rd highest of 50 states)
• Median home value: $219,800 (9th lowest of 50 states)
• Homeownership rate: 66.7% (20th lowest of 50 states)
• Median household income: $70,333 (15th lowest of 50 states)

• Effective property tax rate: 1.26% of home value
• Annual state and local property tax collections: $1,681 per capita (25th highest of 50 states)
• Median home value: $259,900 (17th lowest of 50 states)
• Homeownership rate: 69.5% (16th highest of 50 states)
• Median household income: $73,824 (23rd lowest of 50 states)

• Effective property tax rate: 1.30% of home value
• Annual state and local property tax collections: $1,552 per capita (20th lowest of 50 states)
• Median home value: $220,200 (10th lowest of 50 states)
• Homeownership rate: 67.1% (21st lowest of 50 states)
• Median household income: $67,769 (10th lowest of 50 states)

• Effective property tax rate: 1.38% of home value
• Annual state and local property tax collections: $1,782 per capita (24th highest of 50 states)
• Median home value: $272,500 (20th lowest of 50 states)
• Homeownership rate: 67.9% (24th highest of 50 states)
• Median household income: $74,631 (25th lowest of 50 states)

• Effective property tax rate: 1.40% of home value
• Annual state and local property tax collections: $1,936 per capita (16th highest of 50 states)
• Median home value: $213,300 (6th lowest of 50 states)
• Homeownership rate: 71.8% (10th highest of 50 states)
• Median household income: $71,433 (18th lowest of 50 states)

• Effective property tax rate: 1.44% of home value
• Annual state and local property tax collections: $2,169 per capita (12th highest of 50 states)
• Median home value: $245,200 (14th lowest of 50 states)
• Homeownership rate: 66.3% (19th lowest of 50 states)
• Median household income: $74,590 (24th lowest of 50 states)

• Effective property tax rate: 1.47% of home value
• Annual state and local property tax collections: $2,200 per capita (11th highest of 50 states)
• Median home value: $296,900 (22nd lowest of 50 states)
• Homeownership rate: 62.6% (6th lowest of 50 states)
• Median household income: $75,780 (23rd highest of 50 states)

• Effective property tax rate: 1.54% of home value
• Annual state and local property tax collections: $3,359 per capita (2nd highest of 50 states)
• Median home value: $420,200 (11th highest of 50 states)
• Homeownership rate: 54.1% (the lowest of 50 states)
• Median household income: $82,095 (15th highest of 50 states)

• Effective property tax rate: 1.56% of home value
• Annual state and local property tax collections: $2,991 per capita (5th highest of 50 states)
• Median home value: $332,000 (22nd highest of 50 states)
• Homeownership rate: 73.2% (5th highest of 50 states)
• Median household income: $81,211 (17th highest of 50 states)

• Effective property tax rate: 1.61% of home value
• Annual state and local property tax collections: $3,294 per capita (3rd highest of 50 states)
• Median home value: $415,400 (12th highest of 50 states)
• Homeownership rate: 72.4% (7th highest of 50 states)
• Median household income: $96,838 (4th highest of 50 states)

• Effective property tax rate: 1.78% of home value
• Annual state and local property tax collections: $3,292 per capita (4th highest of 50 states)
• Median home value: $367,800 (19th highest of 50 states)
• Homeownership rate: 65.7% (14th lowest of 50 states)
• Median household income: $91,665 (10th highest of 50 states)

• Effective property tax rate: 1.95% of home value
• Annual state and local property tax collections: $2,473 per capita (8th highest of 50 states)
• Median home value: $263,300 (18th lowest of 50 states)
• Homeownership rate: 67.4% (23rd lowest of 50 states)
• Median household income: $80,306 (18th highest of 50 states)

• Effective property tax rate: 2.08% of home value
• Annual state and local property tax collections: $3,539 per capita (the highest of 50 states)
• Median home value: $461,000 (8th highest of 50 states)
• Homeownership rate: 63.7% (10th lowest of 50 states)
• Median household income: $99,781 (2nd highest of 50 states)