GOBankingRates

States With the Highest Property Taxes

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In some states, homes are cheap, property tax rates are less than half of 1% and the average property tax payment is just a few hundred bucks per year. In the most expensive states, however, rates soar over 2%, homes are pricey and average annual property tax bills routinely creep above $5,000 and beyond.

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Using data from the Tax Foundation, GOBankingRates ranked the states with the highest property taxes in America, including the percentage rate, the average dollar amount paid and the average home value. The results are listed in ascending order from least expensive to most. For context, the national average effective property tax is 0.99%, the U.S. average home value is $337,560 and the average annual property tax bill is $3,357. See which states are the most expensive to own real estate in.

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10. (tie) Iowa

  • Average effective property tax: 1.43%
  • March 2022 average home value: $186,558
  • Average annual property tax paid: $2,668

Iowa’s property taxes are actually low compared to the others on this list, but are still considered high in relation to the rest of the U.S.

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10. (tie) Pennsylvania

  • Average effective property tax: 1.43%
  • March 2022 average home value: $258,835
  • Average annual property tax paid: $3,701

Pennsylvania’s property taxes are high enough to earn it a place in the top 10, but its residents still pay a relatively low property tax rate. That may be due to it having average home values under $260,000.

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9. Ohio

  • Average effective property tax: 1.52%
  • March 2022 average home value: $204,237
  • Average annual property tax paid: $3,104

Ohio has the No. 2 cheapest average home value on the list behind only Iowa. Its property taxes are a bit higher, however, but still nowhere near as pricey as those closer to the top of the list.

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8. Wisconsin

  • Average effective property tax: 1.53%
  • March 2022 average home value: $257,439
  • Average annual property tax paid: $3,939

Next on the list is Wisconsin where the average property tax may be less than the ones that follow, but it’s still high enough to rank. And with an average home value is among the cheapest on this list, Wisconsin has earned a spot among the five states with average annual property taxes paid of less than $4,000.

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7. Nebraska

  • Average effective property tax: 1.54%
  • March 2022 average home value: $233,221
  • Average annual property tax paid: $3,592

Nebraska has the No. 3 cheapest average home value on the list, behind only Ohio and Iowa. And though its property taxes are higher than the rest of the U.S., they’re still on the bottom half of this list.

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6. Texas

  • Average effective property tax: 1.60%
  • March 2022 average home value: $296,622
  • Average annual property tax paid: $4,746

Prices start to rise all around when we hit Texas. The average home value is climbing toward $300,000, and its property taxes are edging up toward $5,000.

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5. Connecticut

  • Average effective property tax: 1.73%
  • March 2022 average home value: $369,485
  • Average annual property tax paid: $6,392

Connecticut and the rest of New England are no stranger to the pricey side of any list having todo with the cost of living in the states. Connecticut marks a significant leap upward in property taxes, closing in on $6,500 per year.

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4. Vermont

  • Average effective property tax: 1.76%
  • March 2022 average home value: $347,329
  • Average annual property tax paid: $6,113

Like its neighboring New England states, Vermont is undoubtedly a pricey state to live in. You can expect to spend over $6,000 in property taxes here, but considering that the average home value is almost $350,000, it’s no surprise.

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3. New Hampshire

  • Average effective property tax: 1.89%
  • March 2022 average home value: $434,563
  • Average annual property tax paid: $8,213

The first state to hit an average effective property tax rate of 1.8%, New Hampshire almost takes the lead with one of the three highest annual average property tax rates on this list.

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2. Illinois

  • Average effective property tax: 1.97%
  • March 2022 average home value: $258,872
  • Average annual property tax paid: $5,100

Illinois is an odd little outlier for the No. 2 spot on this list, as its annual average property taxes are lower than others that fall lower on the list, as is its annual home value. However, it’s the property tax rate of nearly 2% that earns it this high spot.

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1. New Jersey

  • Average effective property tax: 2.13%
  • March 2022 average home value: $458,872
  • Average annual property tax paid: $9,774

New Jersey holds the unenviable distinction of having the highest property taxes in America yet again-it’s a title that the Garden State has gotten used to defending. The tax rate there is an astronomical 2.21%, the highest in the country, and its average home value is painfully high as well. The result is America’s highest average annual property tax paid-no other state even breaks the $7,000 mark, much less $8,000.

Jordan Rosenfeld contributed to the reporting for this article.

Methodology: GOBankingRates looked at Tax Foundation’s “How High Are Property Taxes in Your State?” data to find (1) effective average property tax for each state. Once this was gathered GOBankingRates also found each state’s (2) March 2022 average home value from Zillow and (3) average annual property tax paid. Only factor (1) was considered in the final rankings. All data was collected on and up to date as of May 9, 2022.