Property Taxes by State 2026: All 50 Rates Compared
Property Taxes by US State in 2026: Where They Are Highest, Lowest and What Homeowners Pay Each Month
United States | October 22, 2026
Two families purchase homes for the same $400,000 price.
One lives in New Jersey. The other lives in Hawaii.
They may have similar mortgage balances, but their property-tax bills can be dramatically different.
Using statewide effective property-tax rates published in February 2026, a $400,000 home would carry an illustrative annual property-tax cost of approximately $8,440 in New Jersey and $1,080 in Hawaii.
That represents around $703 a month versus $90 a month.
The difference is approximately $613 every month.
Of course, real tax bills are not calculated by simply applying the statewide average to every home.
Local tax districts, property assessment rules, homestead exemptions and property values matter.
Still, a consistent state-by-state comparison shows why homeowners should include property taxes when deciding how much house they can afford.
This guide compares all 50 states, explains the figures, calculates monthly tax costs using an identical home value, and shows how buyers can verify the amount they might actually owe.
1. What is an effective property-tax rate?
An effective property-tax rate expresses the annual property tax paid as a percentage of the home's value.
For example, a household paying $4,000 annually on a home worth $400,000 has an effective rate of 1%.
The effective rate is different from the published local millage or nominal tax rate.
Local governments may assess property at only part of its market value, apply exemptions or use special valuation rules.
WalletHub's February 17, 2026 analysis calculates statewide effective rates by dividing median real-estate tax paid by median home value, using Census Bureau data.
The result is useful for broad comparisons, but it is not an individual homeowner's statutory tax calculation.
2. Highest property-tax states in 2026
According to WalletHub's dated comparison, the highest effective rates are found in:
| State | Effective rate | Estimated monthly tax on $400,000 |
|---|---|---|
| New Jersey | 2.11% | $703 |
| Illinois | 2.01% | $670 |
| Connecticut | 1.81% | $603 |
| New Hampshire | 1.66% | $553 |
| Vermont | 1.59% | $530 |
| New York | 1.55% | $517 |
| Texas | 1.49% | $497 |
| Nebraska | 1.49% | $497 |
| Wisconsin | 1.42% | $473 |
| Iowa | 1.39% | $463 |
A high statewide rate does not prove that every county within that state has higher taxes than every county in a lower-rate state.
It is an indicator for comparison and budgeting.
3. Lowest property-tax states in 2026
The same study identifies the following relatively low effective rates.
| State | Effective rate | Estimated monthly tax on $400,000 |
|---|---|---|
| Hawaii | 0.27% | $90 |
| Alabama | 0.38% | $127 |
| Nevada | 0.47% | $157 |
| Arizona | 0.48% | $160 |
| Colorado | 0.48% | $160 |
| South Carolina | 0.48% | $160 |
| Idaho | 0.49% | $163 |
| Delaware | 0.50% | $167 |
| Tennessee | 0.50% | $167 |
| Utah | 0.52% | $173 |
Low tax rates do not necessarily mean low total housing costs.
Hawaii, for example, has high home prices in many markets.
A property with a low effective rate but a high assessed value can still generate a meaningful annual tax bill.
Insurance, maintenance, utilities and mortgage costs should also be considered.
4. All 50 US states: property-tax rates and monthly costs
Table checked October 21, 2026. Rate data published February 17, 2026.
The rates below use one consistent source: WalletHub's February 2026 analysis.
The estimated monthly tax is Rajatheertha's arithmetic calculation for a hypothetical $400,000 home.
The table is ordered from the highest effective rate to the lowest.
| State | Effective rate | Annual tax on $400K | Monthly tax |
|---|---|---|---|
| New Jersey | 2.11% | $8,440 | $703 |
| Illinois | 2.01% | $8,040 | $670 |
| Connecticut | 1.81% | $7,240 | $603 |
| New Hampshire | 1.66% | $6,640 | $553 |
| Vermont | 1.59% | $6,360 | $530 |
| New York | 1.55% | $6,200 | $517 |
| Texas | 1.49% | $5,960 | $497 |
| Nebraska | 1.49% | $5,960 | $497 |
| Wisconsin | 1.42% | $5,680 | $473 |
| Iowa | 1.39% | $5,560 | $463 |
| Ohio | 1.31% | $5,240 | $437 |
| Pennsylvania | 1.30% | $5,200 | $433 |
| Kansas | 1.29% | $5,160 | $430 |
| Michigan | 1.25% | $5,000 | $417 |
| Rhode Island | 1.21% | $4,840 | $403 |
| Alaska | 1.11% | $4,440 | $370 |
| Massachusetts | 1.07% | $4,280 | $357 |
| South Dakota | 1.06% | $4,240 | $353 |
| Maine | 1.02% | $4,080 | $340 |
| Minnesota | 1.02% | $4,080 | $340 |
| North Dakota | 0.99% | $3,960 | $330 |
| Maryland | 0.97% | $3,880 | $323 |
| Missouri | 0.85% | $3,400 | $283 |
| Oregon | 0.81% | $3,240 | $270 |
| Washington | 0.81% | $3,240 | $270 |
| Oklahoma | 0.80% | $3,200 | $267 |
| Georgia | 0.77% | $3,080 | $257 |
| Florida | 0.76% | $3,040 | $253 |
| Kentucky | 0.75% | $3,000 | $250 |
| Indiana | 0.74% | $2,960 | $247 |
| Virginia | 0.73% | $2,920 | $243 |
| Montana | 0.72% | $2,880 | $240 |
| Mississippi | 0.72% | $2,880 | $240 |
| California | 0.70% | $2,800 | $233 |
| New Mexico | 0.70% | $2,800 | $233 |
| North Carolina | 0.66% | $2,640 | $220 |
| Wyoming | 0.57% | $2,280 | $190 |
| Arkansas | 0.55% | $2,200 | $183 |
| Louisiana | 0.55% | $2,200 | $183 |
| West Virginia | 0.53% | $2,120 | $177 |
| Utah | 0.52% | $2,080 | $173 |
| Delaware | 0.50% | $2,000 | $167 |
| Tennessee | 0.50% | $2,000 | $167 |
| Idaho | 0.49% | $1,960 | $163 |
| Arizona | 0.48% | $1,920 | $160 |
| Colorado | 0.48% | $1,920 | $160 |
| South Carolina | 0.48% | $1,920 | $160 |
| Nevada | 0.47% | $1,880 | $157 |
| Alabama | 0.38% | $1,520 | $127 |
| Hawaii | 0.27% | $1,080 | $90 |
Washington, DC: Not a state, but included in WalletHub's study. Its effective rate is 0.58%, equivalent to a hypothetical $2,320 a year or approximately $193 a month on a $400,000 home.
Data note: The figures reflect statewide historical effective rates, not uniform 2026 tax rates applied to new purchases. Annual values are based on rounded published percentages. Monthly values are rounded from the illustrative annual amounts.
5. Why New Jersey and Illinois rank near the top
New Jersey and Illinois have some of the highest statewide residential effective tax rates in the comparison.
Property taxes commonly support local services such as education, public safety and municipal operations.
However, tax systems differ in their assessment practices, local government structures, exemption policies and revenue sources.
A state's effective rate reflects the combined result of those systems.
It would be misleading to say one single policy explains every household's bill.
For a prospective buyer, the relevant practical question is how the particular county, town or school district assesses the property being purchased.
The actual tax bill can be materially above or below the statewide benchmark.
6. Why Hawaii has a low effective rate but can still be expensive
Hawaii's statewide effective property-tax rate is only 0.27% in the WalletHub comparison.
On a hypothetical $400,000 home, that suggests about $90 a month.
But Hawaii's median home value in the same study is $839,100.
Its study-reported annual tax on a home priced at that state median is $2,239.
This illustrates an important distinction between tax rate and total tax paid.
A low rate applied to an expensive property can produce more tax than a higher rate on a much cheaper home.
Homeowners must therefore evaluate both assessed value and applicable rates.
7. Texas: no state income tax does not mean low property tax
Texas is notable because it does not levy an individual state income tax on wages under its current system.
But its statewide effective real-estate tax rate in WalletHub's 2026 comparison is 1.49%.
On an illustrative $400,000 home, that equals approximately $497 a month.
Texas also has important residence-homestead exemptions and local property-tax provisions.
Actual bills vary by school district, county and local taxing units.
A household comparing Texas with another state should not examine property taxes alone.
Income taxes, sales taxes, insurance costs, home prices, salaries and public services also affect the total financial picture.
8. California: a lower average rate does not guarantee a small tax bill
California's published effective rate in the selected comparison is 0.70%.
That produces a modeled $233 per month on a $400,000 home.
But many California markets have substantially higher purchase prices.
California's assessment framework, including Proposition 13 rules, can also create major differences between the tax basis of a long-time owner and that of a new buyer.
The current owner's tax bill may not accurately predict the buyer's post-purchase obligation.
Buyers should obtain an estimate using the actual expected purchase price and the property's applicable local tax components.
Do not blindly carry forward the previous owner's annual tax amount.
9. Florida: the difference between homestead and non-homestead property
Florida's statewide effective rate is 0.76% in the selected comparison.
That is approximately $253 per month when applied to a hypothetical $400,000 home.
However, Florida's homestead exemption and Save Our Homes assessment limitation can materially affect eligible principal residences.
When a property changes ownership, its assessed value may be reset according to the applicable rules.
As a result, the current owner's tax bill may be far lower than the amount a buyer pays after acquisition.
A purchaser should ask the county property appraiser for a new-owner estimate.
Homeowners insurance is another major cost consideration in Florida and should not be confused with property tax.
10. How property taxes affect the monthly mortgage payment
A household's monthly housing cost is more than principal and interest.
For many mortgaged homes, the payment includes money deposited into escrow for taxes and homeowners insurance.
A typical budgeting structure is:
Mortgage principal and interest.
Property taxes.
Homeowners insurance.
Mortgage insurance, if applicable.
HOA or condominium fees, where relevant.
The Consumer Financial Protection Bureau explains that principal and interest can remain unchanged on a fixed-rate loan while escrow payments rise or fall.
Therefore, a fixed mortgage rate does not automatically mean a fixed total monthly housing payment.
11. Worked example: two $400,000 houses at the same mortgage rate
Suppose two households each buy a $400,000 home with a 20% down payment.
Each borrows $320,000 over 30 years at an illustrative fixed interest rate of 7%.
The principal-and-interest payment is approximately $2,129 per month.
For this example, assume each household also pays $150 a month in homeowners insurance.
The only difference modeled is the statewide effective property-tax assumption.
| Cost component | New Jersey example | Hawaii example |
|---|---|---|
| Home price | $400,000 | $400,000 |
| Loan principal | $320,000 | $320,000 |
| Mortgage rate | 7% | 7% |
| Principal and interest | $2,129 | $2,129 |
| Property tax estimate | $703 | $90 |
| Assumed homeowners insurance | $150 | $150 |
| Illustrative monthly total | $2,982 | $2,369 |
The difference is $613 per month.
This scenario uses identical hypothetical home prices, loans and insurance solely to isolate the effect of the two statewide tax rates.
It is not a realistic quotation for every New Jersey or Hawaii property.
The example excludes HOA fees, utilities, repairs and maintenance.
12. The monthly affordability effect is substantial
Imagine a household has a maximum housing budget of $3,000 per month.
If taxes and insurance take $850 a month, less money remains available for mortgage principal and interest.
If those same expenses total only $250, the household has greater room in its monthly budget.
This can change the price of home the household can reasonably afford.
But using a low statewide tax average can create a misleadingly generous affordability estimate.
The correct pre-purchase calculation uses a realistic estimate for the actual property.
A mortgage lender will also consider taxes and insurance as part of the applicable repayment assessment.
13. State property-tax rates are not statutory local tax rates
Property taxation in the United States is commonly administered through local jurisdictions.
A property may be subject to levies from its county, municipality, school district or other special districts.
States can also prescribe valuation methods, exemptions and limits.
The rate an owner sees on a local tax notice may use assessed value rather than full market value.
This is why a nominal rate cannot always be compared directly across jurisdictions.
A statewide effective rate compresses these differences into a useful statistical measure.
It does not tell a buyer exactly what will appear on a particular county's bill.
14. What happens after a property is sold?
Property reassessment or taxable-value adjustments can change the new owner's bill.
In some jurisdictions, the existing owner's tax basis is protected by assessment caps or exemptions.
A sale can trigger a change in valuation under the applicable local rules.
A new buyer may also need to apply for their own homestead exemption.
The exemption enjoyed by the seller might not transfer automatically.
Before closing, obtain the local assessor's explanation of how the property will be valued after the purchase.
This is especially important when the seller has owned the home for many years.
15. What are homestead exemptions?
A homestead exemption is a state- or local-law tax benefit generally connected with qualifying owner-occupied residential property.
Its structure varies widely.
Some exemptions reduce assessed value.
Others provide credits, rate adjustments or assessment-growth limits.
Eligibility may depend on permanent-residence status, ownership, application deadlines and other requirements.
Separate relief may be available to qualifying senior citizens, disabled residents or veterans.
An exemption that exists in one state should not be assumed to have the same dollar value in another.
Homebuyers should review the current official county or state application instructions.
16. How to verify taxes before making an offer
Start with the property's actual address.
Identify the county assessor or property appraiser and the local tax collector.
Retrieve the latest tax assessment and payment history.
Check the assessed value, exemptions, special assessments and relevant taxing districts.
Ask whether the property's valuation will change after purchase.
Estimate the new tax bill based on the contemplated purchase and intended occupancy.
Verify whether the household qualifies for homestead or other relief.
Compare the result with the tax amount listed on the lender's Loan Estimate.
Do not rely solely on a national calculator or the real-estate listing.
For unusual properties or complex local rules, seek qualified local assistance.
17. Can homeowners challenge an assessment?
Many jurisdictions offer an administrative appeal or protest procedure.
The owner may be able to dispute a valuation or classification that is inconsistent with the evidence and applicable law.
A successful appeal can reduce the taxable assessment.
However, an appeal does not guarantee a lower bill.
The process may require comparable sales, an appraisal or other documentation.
Deadlines and acceptable evidence vary.
Some jurisdictions treat exemptions and valuation protests as different applications.
Review the official instructions before paying a third-party service that promises a guaranteed reduction.
18. Property taxes can rise even with a fixed mortgage
A fixed-rate mortgage generally provides a stable principal-and-interest calculation for its agreed amortisation schedule.
Property taxes do not operate under that same guarantee.
Local budgets, assessments, special district charges and exemptions can change.
Homeowners insurance premiums can also increase.
The mortgage servicer may conduct an escrow analysis and adjust the monthly payment.
A homeowner can therefore experience a higher monthly bill without any increase in the mortgage interest rate.
This is one reason buyers should leave room in their budgets for future carrying-cost changes.
19. What about property-tax deductions on federal income tax?
Eligible taxpayers who itemise deductions may qualify for federal deductions involving certain state and local taxes, subject to the applicable Internal Revenue Code rules and limits.
The federal state-and-local-tax deduction framework changed under legislation enacted in 2025, including rules applicable during 2026.
The exact benefit depends on taxable income, filing status, whether the taxpayer itemises, the type of tax paid and other statutory conditions.
Do not assume every dollar of property tax produces an equivalent federal tax saving.
A deduction reduces taxable income; it is not a dollar-for-dollar refund.
Homebuyers should use current IRS guidance or seek qualified tax advice for their filing situation.
20. Why the cheapest property-tax state may not be the cheapest place to own
Property tax is only one part of total ownership cost.
A state with low tax rates may have expensive home prices.
Another may have high homeowners-insurance premiums.
HOA expenses, utilities, climate-related maintenance and commuting costs can also vary.
In some regions, natural-disaster risks significantly affect insurance availability and cost.
A family choosing where to buy should compare the full monthly and annual housing budget.
A property with a low tax rate but very high mortgage principal may be less affordable than one in a higher-tax area with much lower purchase prices.
21. The purchase decision checklist
Before choosing a property or comparing states, verify these items:
The actual purchase price and expected mortgage.
The current county property-tax record.
The valuation method and possible reassessment on sale.
Available homestead exemptions.
Special assessments and school-district levies.
Whether tax payments are collected through mortgage escrow.
The lender's estimated monthly tax amount.
Homeowners insurance, including any separate flood or hazard coverage.
HOA or condominium charges.
Maintenance and repair reserves.
The possibility of rising taxes and insurance.
The household's full monthly affordability limit.
The statewide comparison is useful for identifying broad differences.
The parcel-level estimate is what should guide the final purchase budget.
Conclusion: property taxes can change the real affordability of a home
The February 2026 statewide comparison places New Jersey at the highest effective residential property-tax rate, 2.11%, followed by Illinois at 2.01%.
Hawaii is the lowest at 0.27%, followed by Alabama at 0.38%.
Applying those rates to identical hypothetical $400,000 homes produces major differences in monthly carrying costs.
But the published percentages are historical statewide effective measures, not guaranteed bills for a new buyer.
The right way to evaluate a home is to start with the state comparison, then obtain a realistic assessment estimate for the exact property.
The home's mortgage payment is only part of the cost. Property tax, insurance and local assessment rules can materially change what ownership costs every month.
FREQUENTLY ASKED QUESTIONS
1. Which US states have the highest and lowest property taxes in 2026?
According to WalletHub's February 17, 2026 comparison of residential effective property-tax rates, New Jersey has the highest rate at 2.11%, followed by Illinois at 2.01% and Connecticut at 1.81%. Hawaii has the lowest rate at 0.27%, followed by Alabama at 0.38% and Nevada at 0.47%. These are statewide statistical rates based on historical Census data, not statutory rates applied uniformly to every home in 2026. Actual bills depend on local assessments, exemptions and taxing districts.
2. How much property tax would I pay monthly on a $400,000 house?
The monthly cost depends on the location and actual assessment. Using the statewide rates in the February 2026 WalletHub comparison, a hypothetical $400,000 home produces approximately $703 per month in New Jersey, $670 in Illinois, $497 in Texas, $253 in Florida, $233 in California and $90 in Hawaii. These amounts are illustrative averages, not property-specific quotes. Buyers should check the county assessor's current records and ask how the assessment may change after purchase.
3. Are property taxes included in the monthly mortgage payment?
Frequently, yes. Many mortgage lenders collect a monthly amount for property taxes and homeowners insurance through an escrow account, in addition to principal and interest. The mortgage servicer uses those funds to pay eligible bills when due. Property taxes can increase even on a fixed-rate mortgage, causing the total monthly payment to rise after an escrow analysis. Borrowers without escrow must budget to pay property taxes directly. The CFPB recommends reviewing the total monthly housing cost, including insurance and applicable HOA fees, before deciding what home is affordable.
SOURCES AND FURTHER READING
1. WalletHub — Property Taxes by State (February 17, 2026)
https://wallethub.com/edu/states-with-the-highest-and-lowest-property-taxes/11585
Primary source for the 50-state effective-rate table. Method: median residential real-estate taxes divided by median home value, using Census Bureau data collected by January 29, 2026.
2. Tax Foundation — Facts & Figures 2026: How Does Your State Compare?
https://taxfoundation.org/data/all/state/2026-state-tax-data/
Separate state-tax reference. Its residential effective-rate figures should not be combined with WalletHub's table without identifying methodological differences.
3. US Census Bureau — American Community Survey
https://www.census.gov/programs-surveys/acs
Underlying federal survey program for residential property values and tax data.
4. Consumer Financial Protection Bureau — What Is an Escrow Account?
https://www.consumerfinance.gov/ask-cfpb/what-is-an-escrow-or-impound-account-en-140/
5. CFPB — Why Did My Monthly Mortgage Payment Change?
https://www.consumerfinance.gov/ask-cfpb/why-did-my-monthly-mortgage-payment-go-up-or-change-en-213/
6. CFPB — Mortgage Principal and Interest Versus Total Payment
7. CFPB — Decide How Much Home You Can Afford
https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/
8. Internal Revenue Service — Federal Tax Information
Editorial and financial disclaimer: Research checked October 21, 2026. State effective rates originate from WalletHub's February 2026 publication and historical Census data. Monthly estimates are mathematical illustrations based on an identical $400,000 home, not actual property-tax quotations. Statutory levies, assessment ratios, homestead relief, reassessment and special taxes vary by location. Consult the actual county assessor, property appraiser and tax collector before purchasing.
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