Which States Have the Highest and Lowest Property Taxes?

On May 20, 2019, USA Today published an article titled, "Which States Have the Highest and Lowest Property Taxes?" Written by Janna Herron, she states how much you pay in property taxes often comes down to which side of a county, city or district line you’re on. And if you’re a homebuyer this spring, it’s another important factor to consider while you house hunt.

Property Taxes largely fund public schools but also other local services like roads and police. A portion of your monthly mortgage payment goes to property taxes, so if you’re on a tight budget, a higher property tax bill could be onerous.

For instance, in Buffalo and Syracuse in New York, the property tax portion of the monthly bill can often be higher than the mortgage part because tax rates are so high there, says Lawrence Yun, the chief economist for the National Association of Realtors.

“Property tax is a critical piece of information in the home purchase decision and something a buyer should ask about before making the purchase,” Yun says.

Property taxes are hyperlocal. Some states levy a property tax, but for the most part, these taxes are imposed on the county, city or district levels. That means a house down the street from yours could have a higher or lower tax burden than yours.

Home values are another reason why one city has a higher property tax than another. Those areas with higher home values can charge a lower tax rate, but still raise a lot in revenue.

Take California and Ohio. In Ohio, the property tax rate is the 12th highest in the country at 1.56%. A median home in Ohio – valued at $129,900 – brings in $2,032 in property taxes. But in California, the property tax rate is much lower at 0.81% – the 34th lowest in the U.S. – but the median home there (valued at $385,500) raises $3,104 in property taxes.

Other Tax Considerations Property taxes aren’t the only tax burdens, either, that residents should consider, Youngman says. For instance, Bridgeport, Connecticut, has the highest property tax rate but no local sales or income taxes. Birmingham, Alabama, by contrast, has the 11th lowest property tax, but “a host other taxes,” she said.

“If you put those together, Birmingham's tax burden is actually higher than Bridgeport’s,” she said.

State Property Taxes Overall, the effective property tax rate for homeowners is 1.2% in the U.S. On a median home of $178,600, that’s an annual tax bill of $2,149. Eighteen states have effective rates that are the same or higher than the U.S. rate, while 32 states and the District of Columbia have lower rates.