Property taxes vary dramatically across the United States, from under 0.3% in Hawaii to over 2.4% in New Jersey. On a $350,000 home, that spread means a difference of more than $7,000 per year. Below are all 50 states ranked from lowest to highest effective property tax rate.
Property tax rates directly impact your monthly mortgage payment because lenders include taxes in your escrow. On a $300,000 home, Hawaii's 0.28% rate means $840 per year ($70/month), while New Jersey's 2.47% rate costs $7,410 per year ($618/month). That is a difference of $548 per month — or $197,100 over a 30-year mortgage.
Tax rates are set by a combination of state, county, and local jurisdictions. States that rely heavily on property taxes to fund schools and municipal services tend to have higher rates. Some states offset low property taxes with higher income or sales taxes, so the total tax picture matters. Retirees and buyers on fixed incomes should pay close attention to property tax rates since they persist long after the mortgage is paid off.
Explore individual state breakdowns on our state pages to see how property tax interacts with median prices, insurance, and closing costs in each market.
| Rank | State | Property Tax Rate | Median Price |
|---|---|---|---|
| #1 | Hawaii | 0.28% | $830,000 |
| #2 | Alabama | 0.41% | $230,000 |
| #3 | Colorado | 0.51% | $520,000 |
| #4 | Nevada | 0.53% | $425,000 |
| #5 | Louisiana | 0.55% | $195,000 |
| ... | |||
| #46 | Vermont | 1.9% | $380,000 |
| #47 | Illinois | 2.07% | $270,000 |
| #48 | New Hampshire | 2.09% | $430,000 |
| #49 | Connecticut | 2.15% | $405,000 |
| #50 | New Jersey | 2.47% | $505,000 |
Hawaii has the lowest effective property tax rate at 0.28%. On a $300,000 home, annual property taxes would be approximately $840.
Property taxes are typically included in your monthly escrow payment. At a 1% rate on a $300,000 home, taxes add $250/month. At 2.5%, they add $625/month — a $375 difference that directly affects your debt-to-income ratio and purchasing power.
Yes, every state allows property tax appeals. If your assessed value is higher than comparable recent sales, you can file an appeal with your county assessor. Many homeowners successfully reduce their assessments by 5–15%, saving hundreds of dollars per year.
Use our free mortgage calculator to estimate your monthly payment in any state.
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