States with Highest Property Taxes in 2026
Quick Summary
#1 Highest: New Jersey (2.30% average rate)
Cost on $400k home: $9,200/year in NJ vs $3,000/year nationally
Why so high? Heavy reliance on property tax for schools + high home values
Should you leave? Depends on income - high earners can offset with state tax deductions
The 10 States with Highest Property Taxes
1. New Jersey - 2.30% Average Rate
Rank: #1 Highest in America
Average Rate: 2.30% (some counties over 2.7%)
On $300k home: $6,900/year
On $400k home: $9,200/year
On $500k home: $11,500/year
Why so high?
- 565 separate municipalities all levy their own taxes
- Extremely high home values (median $500k+)
- Excellent public schools funded primarily through property taxes
- High cost of local services
Trade-off: World-class schools, proximity to NYC, strong communities. But you pay dearly for it.
2. Illinois - 2.08% Average Rate
Average Rate: 2.08%
On $300k home: $6,240/year
On $400k home: $8,320/year
Why so high?
- Massive pension debt ($140B+ unfunded liability)
- Chicago area rates often exceed 2.5%
- Population decline = fewer people to share tax burden
- Corruption and inefficiency drive up costs
Reality check: Many homeowners in Chicago suburbs pay $10,000-$15,000/year. This is unsustainable for middle-class families.
3. New Hampshire - 2.05% Average Rate
Average Rate: 2.05%
On $300k home: $6,150/year
On $400k home: $8,200/year
Why so high?
- No state income tax OR sales tax
- Property tax is THE main revenue source
- Trade-off: Keep 100% of your income, but pay at the home
The deal: If you're a high earner, NH can still be worth it. Save $8k/year on income tax, pay $6k/year on property tax = net win.
4. Connecticut - 1.97% Average Rate
Average Rate: 1.97%
On $400k home: $7,880/year
Why so high?
- High cost of living statewide
- Wealthy towns with excellent schools (Greenwich, Darien, etc.)
- Also has high state income tax (up to 6.99%)
Double whammy: High property tax AND high income tax. CT is expensive all around.
5. Vermont - 1.90% Average Rate
Average Rate: 1.90%
On $400k home: $7,600/year
Why so high?
- Small population = higher per-capita burden
- Rural infrastructure expensive to maintain
- Commitment to education and public services
6. Texas - 1.60% Average Rate
Average Rate: 1.60% (but metro areas 1.8-2.0%+)
On $400k home: $6,400/year
Why so high?
- No state income tax = property tax is main revenue
- Fast-growing population needs schools, roads, services
- Austin/Dallas suburbs often exceed 2%
The deal: You save $5k-$10k/year on income tax, but pay $6k+ on property tax. Still a net win for most.
7. Nebraska - 1.57% Average Rate
Average Rate: 1.57%
On $400k home: $6,280/year
Why so high?
- Heavy agriculture dependence = unstable tax base
- Small population
- Plus has state income tax (up to 6.64%)
8. Wisconsin - 1.53% Average Rate
Average Rate: 1.53%
On $400k home: $6,120/year
Why so high?
- Strong public school system funded via property tax
- Also has progressive income tax (3.54%-7.65%)
9. Ohio - 1.52% Average Rate
Average Rate: 1.52%
On $400k home: $6,080/year
Why so high?
- Heavy reliance on property tax for schools
- Plus has state income tax + local income taxes
- Some cities add 2-3% local income tax on top
10. Pennsylvania - 1.50% Average Rate
Average Rate: 1.50%
On $400k home: $6,000/year
Why so high?
- Many small municipalities = inefficient
- Aging infrastructure needs funding
- Plus 3.07% flat income tax (but no local income tax)
States with LOWEST Property Taxes (For Comparison)
| State | Rate | On $400k Home |
|---|---|---|
| Hawaii | 0.31% | $1,240/year |
| Alabama | 0.39% | $1,560/year |
| Louisiana | 0.52% | $2,080/year |
| Delaware | 0.59% | $2,360/year |
| West Virginia | 0.61% | $2,440/year |
The difference: $9,200/year in NJ vs $1,240/year in Hawaii on the same $400k home. That's $8,000/year or $160,000 over 20 years!
Should You Leave High Property Tax States?
When High Property Taxes Are Worth It:
- Excellent schools: NJ, CT, MA have some of the best public schools in America
- High home values: Your home appreciates faster, offsetting tax cost
- Strong communities: Well-funded services, safe neighborhoods
- You're a high earner: Can deduct property tax (up to $10k) on federal return
- Close to major cities: Job opportunities, culture, convenience
When You Should Consider Moving:
- Kids graduated: No longer using expensive school system
- Retired/fixed income: Property tax payments hurt more without rising income
- Can work remotely: Keep salary, move to low-tax state
- Home paid off: Property tax becomes your biggest expense
- Taxes rising faster than income: Becoming unaffordable
The Biggest Myth About Property Taxes
Myth: "States with no income tax have higher property taxes to compensate."
Reality: Not always true!
| State | Income Tax | Property Tax Rate |
|---|---|---|
| Florida | 0% | 0.89% |
| Nevada | 0% | 0.64% |
| Tennessee | 0% | 0.67% |
| Wyoming | 0% | 0.56% |
Florida has BOTH no income tax AND low property taxes. It's the best of both worlds for many people.
See all 9 states with no income tax