Last Updated: April 2026
Property tax is often the largest annual tax bill for homeowners — larger than state income tax for many middle-class families. Yet it varies enormously by state. New Jersey's average effective rate (2.23%) is more than 8× higher than Hawaii's (0.27%). For a homeowner with a $500,000 home, that's a $9,800 difference in annual tax. This hub compiles all our state-vs-state property tax comparison pages, plus quick reference data for every state.
Our detailed property tax comparison pages show exact annual costs for a sample home, homestead exemption values, senior exemptions, and the net saving from moving between states:
| State | Effective Rate | Annual Tax ($400K Home) | Homestead Exemption | Notes |
|---|---|---|---|---|
| Hawaii | 0.27% | $1,080 | $100,000 off assessed value | Lowest rate; very high home values |
| Alabama | 0.37% | $1,480 | $4,000–$16,000 off assessed | Strong senior circuit breaker |
| Nevada | 0.55% | $2,200 | $1,000 off assessed value | No income tax; best overall |
| Arizona | 0.62% | $2,480 | $3,965 off EAV | Primary residence assessment ratio 10% |
| South Carolina | 0.57% | $2,280 | 4% ratio for primary residence | Excellent senior circuit breaker |
| Colorado | 0.51% | $2,040 | $50,000 off assessed (2023 expansion) | Gallagher Amendment limits; TABOR |
| Florida | 0.86% | $3,440 | $50,000 + Save Our Homes cap | No income tax; overall excellent |
| Georgia | 0.92% | $3,680 | $2,000 off assessed; county extras | $65K retirement exemption (65+) |
| California | 0.71% | $2,840 | Prop 13: 1% cap + 2% annual increase limit | Prop 19 transfer rules; income tax 13.3% |
| Virginia | 0.90% | $3,600 | Varies by locality | Personal property tax on vehicles extra |
| Maryland | 1.06% | $4,240 | $300 credit; Homestead cap | County income tax 2.25–3.2% extra |
| Oregon | 0.93% | $3,720 | Ballot Measure 47/50 rate limits | No sales tax; income tax 9.9% |
| Minnesota | 1.02% | $4,080 | Market Value Homestead Credit | High income tax on SS + pensions |
| Ohio | 1.53% | $6,120 | $26,200 off assessed (2024 increase) | School district income tax extra |
| Michigan | 1.32% | $5,280 | Principal Residence Exemption (18 mill reduction) | No property tax on primary if PRE applied |
| Pennsylvania | 1.49% | $5,960 | Varies; Homestead Act; senior freeze | No pension/retirement income tax |
| New York | 1.54% | $6,160 | STAR (Basic: ~$293 credit) | NYC adds city income tax 3.876% |
| Texas | 1.60% | $6,400 | $100,000 off assessed value (2023) | No income tax; but property burden is real |
| Wisconsin | 1.61% | $6,440 | Up to $300 credit | Taxes pension income; double burden |
| Illinois | 2.07% | $8,280 | $10,000 off EAV (General Homestead) | 2nd highest US; exempts all retirement income |
| New Jersey | 2.23% | $8,920 | ANCHOR program up to $1,750 | Highest property tax in the US |
There is often confusion between a state's statutory tax rate (levied rate) and the effective rate (actual tax paid as % of market value). Key reasons they differ:
Many states assess property at a fraction of market value. Arizona assesses residential property at 10% of market value — so a $400,000 home is assessed at $40,000, and a nominal rate of 5% produces an effective rate of 0.5% ($2,000). The effective rate is always the most useful figure for comparing states.
Exemptions reduce taxable assessed value. Texas's $100,000 homestead exemption (as of 2023) removes $100,000 from the assessed value before the tax rate applies. For a $300,000 assessed home, the effective rate is applied to $200,000 — significantly reducing the effective burden.
Florida's 'Save Our Homes' cap limits assessed value increases to 3% per year for primary residences. Over time, long-term residents' effective rates fall well below the nominal rate as market values rise faster than assessments. California's Proposition 13 works similarly, capping assessed value increases at 2% per year.
Property tax is almost entirely a local government function. The state rate is often a small component — most property tax is levied by counties, municipalities, school districts, and special districts. Illinois has 7,000+ taxing districts. Texas's effective property tax rate is the sum of city + county + school district + hospital district + junior college district rates.
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Get Matched With a CPA →Hawaii has the lowest effective property tax rate at 0.27%, but Hawaii home values are among the highest in the US — so the dollar burden is not as low as the rate suggests. For overall low property tax burden (rate AND affordable home values), Alabama (0.37%), West Virginia (0.57%), and South Carolina (0.57%) offer the lowest effective cost for middle-income homeowners. Among no-income-tax states: Nevada (0.55%) and Florida (0.86%) offer the best combined value — low property tax with no state income tax.
Not necessarily — it depends on your home value. Florida's effective rate (0.86%) is lower than Texas's (1.60%), but Florida also has stronger homestead exemptions and the Save Our Homes cap that compresses effective rates for long-term residents. Both states have no state income tax. For a $300,000 home: Florida ~$2,580/year vs Texas ~$4,800/year (after $100,000 homestead exemption on a $300,000 assessed home = $200,000 taxable × 1.60%). Florida wins on property tax — and on income tax it's equal. Texas has advantages in some markets with lower home prices. See our detailed comparison pages for state-specific breakdowns.
Yes — in every US state, property owners have the right to appeal their assessed value. The appeal process varies by state but typically involves: (1) Requesting a review from the county assessor or assessment appeals board; (2) Providing comparable sales data showing your home is over-assessed relative to similar properties; (3) Filing within the annual appeal window (typically 30–90 days after assessment notices are sent). Studies suggest 30–40% of property tax appeals result in a reduced assessment. For high-value properties, hiring a property tax appeal specialist often pays for itself many times over. This is especially valuable in high-tax states like New Jersey, Illinois, and New York.