Property Tax Rates by State: 2025 Complete Guide
A complete guide to property tax rates in all 50 states, including average effective rates, median tax bills, and how each state calculates property taxes.
How Property Taxes Work
Property taxes are levied by local governments — counties, cities, school districts, and special taxing districts — not the federal government. Your annual property tax bill is calculated by multiplying your home's assessed value by the mill rate (tax rate). The assessed value is often different from market value; many jurisdictions assess at 80–100% of market value, while others assess at a fraction.
States with the Highest Property Tax Rates
New Jersey: 2.23% effective rate — The highest in the nation. A $400,000 home in NJ pays approximately $8,920/year in property taxes. High rates fund excellent public schools but make homeownership expensive.
Illinois: 2.08% — Chicago suburbs are among the most heavily taxed areas in the country. Cook County alone has over 1,400 taxing bodies.
Connecticut: 1.92% — High home values combined with high rates create some of the largest absolute tax bills in the nation.
New Hampshire: 1.89% — No income or sales tax; property taxes fund most government services.
Vermont: 1.83% — High rates reflect the cost of maintaining services in a rural, low-population state.
States with the Lowest Property Tax Rates
Hawaii: 0.28% effective rate — The lowest in the nation, though high home values mean absolute bills can still be significant. A $700,000 home pays about $1,960/year.
Alabama: 0.41% — Very low rates make Alabama one of the most affordable states for property ownership. A $200,000 home pays about $820/year.
Colorado: 0.51% — Assessment limits keep rates low despite rising home values.
Louisiana: 0.55% — Homestead exemptions reduce taxable value significantly for primary residences.
South Carolina: 0.57% — Popular retirement destination partly due to low property taxes.
How to Calculate Your Property Tax
The formula is: Annual Tax = Assessed Value × Mill Rate / 1,000. If your home is assessed at $350,000 and your mill rate is 15 mills, your annual tax is $350,000 × 15 / 1,000 = $5,250. Use our calculator above to estimate your bill based on your state and home value.
Property Tax Exemptions
Most states offer exemptions that reduce your taxable assessed value. Common exemptions include: Homestead exemption (for primary residences, typically $25,000–$100,000 reduction in assessed value); Senior citizen exemption (additional reductions for homeowners over 65); Veteran exemption; and Disability exemption. Always apply for every exemption you qualify for.