Property tax by state/county

Property tax by state — effective rates and what they really cost

Property tax is set locally, not federally — so you have to look at state-level averages to get a ballpark, and at county/city level for the actual number. This calculator uses effective statewide rates from the Tax Foundation (2024) as a starting point. For a precise number on a specific address, look up the county assessor's website.

Effective rate vs. nominal rate

The "mill rate" or "millage" in most jurisdictions is a number per $1,000 of assessed value. That's the nominal rate, but it doesn't tell you the effective rate on market value because counties vary in how they set assessed value:

• Some (Alabama, for example) assess at 10% of market value, so a 4% nominal rate is an 0.4% effective rate.
• Some (most of the Midwest) assess at 33% of market value.
• Some (California post-Prop-13) assess at purchase price + 2%/year, which may be well under market.
• Some (Florida with Save Our Homes) limit annual growth on primary residence assessments to 3%.

We report the effective rate — annual tax divided by market value. That's the apples-to-apples comparison across states.

Top property-tax states

• New Jersey — 2.23%. NJ has long led the country, driven by high home values, heavy reliance on local property tax for school funding, and limited state aid to municipalities. A $500,000 NJ house pays about $11,150/year.
• Illinois — 2.08%. Heavy local reliance and underfunded pension obligations push IL property taxes into the top tier. Cook County (Chicago) is the worst within IL.
• Texas — 1.68%. High rates because Texas has no state income tax. The state funds itself via sales tax + property tax. A $400,000 TX home pays ~$6,700 vs. ~$3,000 in California (pre-Prop-13 beneficiary).
• New Hampshire — 1.93%. No sales tax, no wage income tax, so all revenue comes from property and business taxes. Effective rates are high to make up the gap.

Low property-tax states

• Hawaii — 0.29%. Lowest in the country. Partly offset by the highest home prices — Hawaii median is nearly $900,000 so the absolute tax bill is still higher than many low-priced states.
• Alabama — 0.41%. Low home values and heavy state income tax make the property-tax burden minimal.
• Colorado — 0.51%. TABOR (the Taxpayer Bill of Rights) caps government revenue growth, which has historically kept property taxes low. Recent reforms may push rates up.

The Texas vs California comparison

These two states illustrate the property-tax vs income-tax trade-off perfectly. Texas: 1.68% property tax, 0% state income. California: 0.75% property tax, up to 13.3% state income tax. For a high earner ($300,000 income, $750,000 home):

• Texas: $0 income tax + $12,600 property tax = $12,600
• California: ~$24,000 income tax + $5,600 property tax = $29,600

For a retiree with low income but the same home value, the comparison flips:

• Texas: $12,600 property tax on a fixed income
• California: low income tax + $5,600 property tax (and Prop 13 caps future growth)

Florida (0.86% property / 0% income) and Tennessee (0.71% / 0% wage income) are often the sweet spot for retirees.

California's Proposition 13

Passed in 1978, Prop 13 caps California property tax at 1% of the assessed value, and caps annual assessment growth at 2%. The property is re-assessed at full market value when sold. This creates very large disparities: a long-held home's property tax can be 30–50% of a newly-purchased neighbor's tax on an identical house. Prop 13 is a major reason California property taxes look low on a statewide effective basis, but newcomers pay market rates.

What your escrow pays

If you have a mortgage with escrow, the lender collects ~1/12 of your annual property tax each month along with your payment. They then pay the tax bill directly to the county when it's due (annually, semi-annually, or quarterly depending on jurisdiction). If your assessment goes up, the lender re-calculates the escrow and your monthly payment goes up to match — even though your P&I is fixed. This is why a "fixed" mortgage payment can still rise over time.

Homestead and senior exemptions

Most states offer a homestead exemption that reduces the taxable value for primary residences (typically $25,000– $50,000 off assessed value). Many add additional senior exemptions for homeowners 65+, and some freeze the assessment for seniors. Check your county assessor for exemptions — you usually have to apply; they're not automatic.