Top 5 States with the Most Expensive Property Taxes

Homeowners are feeling the pinch of property taxes and it’s not just isolated to one region.

As Americans gather up their needed documents for tax season, separately, many are also making payments on their property taxes and for some homeowners that number equates to tens of thousands of dollars.

Homeowners are responsible for paying taxes on their properties—no matter how small the home or parcel may be.

Property taxes are based on the value of a home and the land it sits on. This includes any structures that are on the piece of land. The amount a homeowner will pay in property taxes plays a role when it comes to people who are considering purchasing a new home.

The tax rate amounts varies by town, county, and state. For example, a city tax rate is set based on how much money is needed to pay for expenses, such as police and fire departments, schools, and roads.

Property taxes are the largest source of revenue for state and local governments.

New Jersey tops the list with Texas rounding out the Top 5.

“Both states are middle of the pack when it comes to affordability before taxes, with Texas ranking #20 and New Jersey ranking #28,” says Joel Berner, senior economist with Realtor.com®.

“The high property tax burdens in these states make affordability even more of a challenge.”

Here’s a look at the Top 5 states paying the highest property tax rates:

1. New Jersey

Garden State residents are paying the highest tax rates in the United States.

For 2024, the average tax rate was 2.46%, according to Maptive.

• Median home value: $531,559
• Median tax paid: $9,137
• Source: Realtor.com®

Within New Jersey, Bergen, Essex and Morris County residents pay some of most exorbitant in property taxes.

Mendham Township (Morris Co.) residents have an average tax bill of $20,297. People who live in Millburn (Essex Co.) are paying an average of $25,415. Meanwhile, Demarest (Bergen Co.) homeowners are paying $24,741 according to NJ Division of Taxation.

2. Illinois

Moving to the Midwest, Illinois comes in at Number 2 on the list with an average tax rate of 2.29%

• Median home value: $257,800
• Median tax paid: $4,506
• Source: Realtor.com

Peoria and Rockford topped a SmartAsset ranking of highest property taxes in the state.

3. Connecticut

Connecticut comes in at Number 3 with an average tax rate of 2.16%

• Median home value: $422,721
• Median tax paid: $6,556
• Source: Realtor.com

Overall, Connecticut residents faced some of the largest property tax increases in the last decade, according to ValuePenguin. Bridgeport, Stamford, and Norwalk are paying some of the highest.

4. New Hampshire

Depending on which study you look at, New Hampshire continues to rank up there as a state with one of the highest tax rates, averaging 2.09%, says Maptive.

• Median home value: $483,135
• Median tax paid: $6,598
• Source: Realtor.com

With a population of about 1.4 million people, New Hampshire ranks up there when it comes to high taxes. Home buying demand and low inventory are also creating competition among people looking to settle in New Hamphire.

5. Texas

The Lone Star State has an average property tax rate of 1.90%.

• Median home value: $297,041
• Median tax paid: $5384.56
• Source: Realtor.com

High property taxes are dominating the headlines in Texas, as residents have expressed their frustration over paying too much.

At least 50% of homeowners want government leaders to prioritize the state’s $24 billion budget surplus to go toward property tax relief, according to a University of Houston survey.

Gov. Greg Abbott calls property tax cuts an “emergency item” but it will depend on lawmakers whether or not they will swiftly act upon the governor’s request.

Property tax math

The amount you pay in property taxes is based on the assessed value of your property.

The assessed value will be determined by your tax district’s municipal property assessor.

Calculating the tax amount you will pay each year will depend on your town, city, or county.

There are exemptions a homeowner can look into. Veterans, senior citizens, clergy and the disabled may be eligible for exemptions to help alleviate a high tax burden.

Homeowners can challenge the assessment of their home and the amount they have to pay, but there’s no guarantee the taxes owed will be lowered.

The age of your home won’t play a factor in with what you end up having to pay.

“There’s not much difference between the taxes on a new home and an existing home of the same price, though existing home owners may have more wiggle room to protest their taxes by establishing a lower, more historical assessment value to be taxed on,” explains Berner. “New home owners will likely be tied to their purchase price plus appreciation.”

Most of all, when you make payment is key or risk handing over more money.

“In addition to avoiding late fees, you may find there is a discount for paying property taxes early,” Greg McBride, chief financial analyst, told Realtor.com. “Being late with your property tax payment can risk much more serious collection efforts such as a lien on the property, potential legal fees, and even risk of foreclosure.”