Property Taxes By State: Highest To Lowest (2024)

FAQs

What state has the highest and lowest property taxes? ›

Hawaii is the state with the lowest real estate property tax rate, while New Jersey is the state with the highest, according to personal finance site WalletHub.

New York has the highest overall tax burden, while Alaska has the lowest. Maine has the highest property tax burden, while Alabama has the lowest. California has the highest individual income tax burden, while seven states (including Texas, Florida and Washington) have the lowest.

Lake County has the highest median property taxes paid at $8,040, according to 2021 data from the Tax Foundation, while Pulaski County near the Kentucky border has the lowest at $647.

Sadly for investors, the answer is no, there are no states without property tax. This is because property tax is a useful way for local governments to fund public services such as schools, fire and police departments, infrastructure and libraries.

New Jersey has the highest property tax rate at 2.47%, followed by Illinois, Connecticut, New Hampshire, and Vermont. There are 14 counties with an estimated median property tax above $10,000 across California, New York, New Jersey and Virginia.

According to the updated MoneyGeek analysis, the most “tax friendly” state overall was Nevada, where the median family owes about 3% of its income in taxes. Meanwhile, 13 states earned either a D or F grade for tax burdens. For some of those states, like Oregon, high personal income tax rates are to blame.

In 2020, the average American contributed 8.9% percent of their income in state taxes. Alaska had the lowest average overall tax burden – measured as total individual taxes paid divided by total personal income – at 5.4%, followed by Tennessee (6.3%), New Hampshire (6.4%), Wyoming (6.6%) and Florida (6.7%).

New Jersey faces the double whammy of having the highest effective property tax rate in the U.S. while also having some of the highest home costs in the country.

When cities and towns face dangerously high pension costs, they are forced to raise property taxes to cover shortfalls. So, residents pay more in taxes towards past government services and see fewer benefits from current government services for their money.

What towns in Illinois have no property tax? ›

The following Illinois municipalities did not levy a property tax in 2014: Allerton, Beach Park, Big Rock, Bismark, Braceville, Campton Hills, Cherry Valley, Countryside, Curran, Damiansville, Deer Park, Dupo, Eldred and Fairview Heights.

It is important to note that this measure does not include commercial or other properties that have a higher tax burden by policy in Cook County and certain other jurisdictions across the United States. Lake County had the highest median property taxes paid in Illinois at $7,724.

As a senior citizen, you probably will end up paying property taxes for as long as you are a homeowner. However, depending on the state you live in and often once you hit your 60s (usually around the ages of 61 to 65), you may be eligible for a property tax exemption.

Alabama, Alaska, Florida, Georgia, Mississippi, and South Dakota stand out as states with no property taxes for seniors aged 65 and above. Alabama exempts seniors entirely, while Alaska offers a $150,000 exemption. Florida provides benefits for retirees, including property tax exemptions.

So, one of the main factors of high property taxes in Texas is the absence of a state income tax. Without income tax, Texas must make up for the lack of revenue in other ways to fund their local governments, leading to higher property tax rates for homeowners.

Due to the absence of a state income tax, Florida's property tax rates are generally considered moderate compared to other states. On average, property owners in Florida can expect to pay between about 0.8% and 2.0% of their property's assessed value annually in property taxes.