Property Taxes by State: 2026 Rates & What They Cost You
Based on Tax Foundation 2025 effective rates, with real dollar impact on monthly payments at current mortgage rates.
Property taxes don't get the same attention as mortgage rates, but they can swing your monthly payment by hundreds of dollars. The same $400,000 home costs $97/month in Hawaii or $800/month in New Jersey — before you write a single mortgage check. Here's how every state stacks up in 2026, with real numbers you can use.
All 50 States Ranked by Property Tax Rate
Effective tax rate = total property tax paid divided by home market value. This accounts for assessment ratios that vary by state. Data from the Tax Foundation's 2025 State & Local Tax Report:
| Rank | State | Rate | Annual (on Median Home) | Monthly Escrow |
|---|---|---|---|---|
| 1 | New Jersey | 2.40% | $12,240 | $1,020 |
| 2 | Illinois | 2.15% | $6,235 | $520 |
| 3 | New Hampshire | 2.09% | $10,032 | $836 |
| 4 | Connecticut | 1.96% | $7,448 | $621 |
| 5 | Vermont | 1.83% | $6,588 | $549 |
| 6 | Wisconsin | 1.73% | $4,844 | $404 |
| 7 | Pennsylvania | 1.62% | $4,617 | $385 |
| 8 | Texas | 1.60% | $5,840 | $487 |
| 9 | Nebraska | 1.54% | $4,004 | $334 |
| 10 | Ohio | 1.53% | $3,443 | $287 |
| 11 | Iowa | 1.49% | $3,129 | $261 |
| 12 | New York | 1.40% | $6,440 | $537 |
| 13 | Michigan | 1.38% | $3,381 | $282 |
| 14 | Kansas | 1.34% | $3,082 | $257 |
| 15 | Rhode Island | 1.30% | $5,460 | $455 |
| 16 | South Dakota | 1.17% | $3,042 | $254 |
| 17 | Massachusetts | 1.14% | $6,726 | $561 |
| 18 | Maine | 1.09% | $3,706 | $309 |
| 19 | Minnesota | 1.05% | $3,675 | $306 |
| 20 | Maryland | 0.93% | $3,906 | $326 |
| 21 | Missouri | 0.89% | $2,136 | $178 |
| 22 | Georgia | 0.87% | $3,219 | $268 |
| 23 | Florida | 0.86% | $3,612 | $301 |
| 24 | Washington | 0.84% | $5,208 | $434 |
| 25 | Oregon | 0.80% | $4,080 | $340 |
| 26 | Oklahoma | 0.74% | $1,443 | $120 |
| 27 | Kentucky | 0.72% | $1,440 | $120 |
| 28 | California | 0.71% | $5,467 | $456 |
| 29 | North Carolina | 0.70% | $2,555 | $213 |
| 30 | Virginia | 0.68% | $2,584 | $215 |
| 31 | Mississippi | 0.67% | $1,173 | $98 |
| 32 | Indiana | 0.64% | $1,408 | $117 |
| 33 | Arizona | 0.62% | $2,790 | $233 |
| 34 | Delaware | 0.61% | $2,013 | $168 |
| 35 | Utah | 0.60% | $3,120 | $260 |
| 36 | West Virginia | 0.59% | $944 | $79 |
| 37 | Wyoming | 0.57% | $1,881 | $157 |
| 38 | Montana | 0.56% | $2,464 | $205 |
| 39 | Tennessee | 0.56% | $1,876 | $156 |
| 40 | Louisiana | 0.55% | $1,100 | $92 |
| 41 | Arkansas | 0.53% | $981 | $82 |
| 42 | South Carolina | 0.52% | $1,612 | $134 |
| 43 | Nevada | 0.50% | $2,300 | $192 |
| 44 | Idaho | 0.49% | $2,352 | $196 |
| 45 | Alabama | 0.41% | $800 | $67 |
| 46 | Colorado | 0.35% | $2,065 | $172 |
| 47 | Hawaii | 0.29% | $2,392 | $199 |
Median home prices from Zillow Home Value Index, March 2026. Effective rates from Tax Foundation State & Local Tax Report 2025.
What This Means for Your Mortgage Payment
Lenders escrow property taxes into your monthly payment alongside principal, interest, and insurance (PITI). On a $400,000 home, the monthly tax component alone spans $97 to $800 depending on the state:
| State (Rate) | Annual Tax | Monthly Escrow | Equiv. Mortgage Capacity* |
|---|---|---|---|
| Hawaii (0.29%) | $1,160 | $97 | +$103,000 |
| Colorado (0.35%) | $1,400 | $117 | +$97,000 |
| Florida (0.86%) | $3,440 | $287 | +$0 (baseline) |
| Texas (1.60%) | $6,400 | $533 | -$83,000 |
| New Jersey (2.40%) | $9,600 | $800 | -$123,000 |
*Equivalent mortgage capacity: how much less/more you could borrow if taxes were the national average (0.86%), holding monthly payment constant at 6.7% rate.
Case Study: Texas — No Income Tax, But High Property Tax
Texas relies on property taxes (1.60% effective) because it has no state income tax. On a $350,000 Houston-area home, you pay ~$5,600/year ($467/month). Texas also offers a $25,000 general homestead exemption and a $10,000 school district exemption — saving ~$560/year for a primary residence. Seniors 65+ get additional breaks. Still, even with exemptions, Texas property taxes remain among the top 10.
California's Prop 13: Important Caveat
California's 0.71% rate looks attractive, but Prop 13 caps assessment increases at 2% per year — until the home sells. When you buy, the home is reassessed at your purchase price. A seller paying taxes on a $200K assessed value could pass you an $800K reassessed bill — quadrupling the tax overnight. Always calculate based on your purchase price, not the seller's current tax bill.
Methodology & Sources
How we calculate: Effective tax rates = total property taxes collected / total estimated property value. This differs from nominal rates because states assess at different percentages of market value.
- Tax rates: Tax Foundation, "Property Taxes by State" (2025 update using 2023 Census data). Effective rates based on American Community Survey.
- Median home prices: Zillow Home Value Index, March 2026.
- Homestead exemptions: Individual state tax authority websites, verified April 2026.
- Mortgage rate assumption: Freddie Mac PMMS 6.67% for 30-year fixed, May 22, 2026.
Data verified against primary sources on 2026-05-27. Corrections? [email protected].
Factor Property Taxes Into Your Budget
Compare homes across state lines using actual PITI, not just listing price. Our mortgage calculator pre-loads each state's effective tax rate:
Calculate Your Full Payment →Texas buyers face a median home price of $305,000 with a 1.60% effective property tax rate. See how these numbers affect your payment with our Texas mortgage calculator.
Compare with New York (median home price $428,000, 1.40% property tax) using our New York mortgage calculator.