Note: This analysis covers property taxes in the United States only. We do not provide information for other countries.
States with Highest and Lowest Property Taxes (2025)
Discover which U.S. states have the highest and lowest property tax rates. Compare effective rates and find tax-friendly states for homeowners and investors.
Highest Property Tax States
These states have property tax rates above 1.60% - more than double the national average
New Jersey
High education spending, local services
Illinois
Cook County rates, pension obligations
New Hampshire
No income tax, education funding
Vermont
Education Act 60, small towns
Connecticut
Municipal spending, revaluations
Why Are These Rates So High?
- • Heavy reliance on property taxes for education funding
- • High-quality local services and amenities
- • Limited alternative revenue sources (no/low income tax)
- • Small municipal governments with high per-capita costs
Lowest Property Tax States
These states have property tax rates below 0.65% - well below the national average
Alabama
Low assessments, agricultural exemptions
Louisiana
Homestead exemption, oil revenue
Hawaii
High home values, tourism revenue
Delaware
No sales tax, business revenue
South Carolina
Assessment ratios, exemptions
Why Are These Rates So Low?
- • Alternative revenue sources (sales tax, natural resources, tourism)
- • Constitutional limits on property tax rates or assessments
- • Generous homestead and agricultural exemptions
- • Lower local government spending per capita
Where Our Calculator States Rank
Texas
Ranked #6 nationally
Pros
- • Strong economy
- • No income tax
Cons
- • High property taxes
New York
Ranked #15 nationally
Pros
- • STAR exemptions
- • Urban amenities
Cons
- • NYC complexity
- • High rates in some areas
Florida
Ranked #25 nationally
Pros
- • No income tax
- • Save Our Homes cap
Cons
- • Hurricane insurance costs
California
Ranked #35 nationally
Pros
- • Prop 13 protection
- • Strong job market
Cons
- • Very high home prices
What Makes a State "Tax-Friendly"?
Consider Total Tax Burden
Low property taxes don't always mean low total taxes. States like New Hampshire have high property taxes but no income tax. Texas has moderate property taxes but no income tax and relatively low sales tax.
Homestead Exemptions Matter
Many states with seemingly high rates offer substantial homestead exemptions that significantly reduce the actual tax burden for homeowners. Florida and Texas are prime examples.
Assessment Caps Provide Stability
California's Proposition 13 and Florida's Save Our Homes cap protect existing homeowners from rapid assessment increases, even in hot real estate markets.
Important Disclaimer
This information is for educational purposes only and should not be considered tax, legal, or financial advice. Property tax rates, rules, and exemptions change frequently. Always verify current information with your local tax assessor or consult a qualified professional before making decisions.