States With the Highest Property Taxes in 2026

New Jersey has the highest property taxes in the United States. The median homeowner there pays $9,590 per year — roughly four times the national median. Illinois, Connecticut, and New Hampshire follow close behind, each costing homeowners well over $5,000 annually.

Notice that a higher rate does not always mean a higher bill. New Hampshire ranks #4 by rate but #2 in dollars paid because home values are higher. All data comes from the U.S. Census Bureau American Community Survey (ACS 2024). Below is the complete 50-state ranking, followed by why each top-10 state charges so much — and what you can do to lower your bill.

All 50 States Ranked by Property Tax Rate

Sorted from highest to lowest effective tax rate. Every state links to its detailed page with county-level data.

Looking for the other end of the spectrum? See our guide to states with the lowest property taxes.

Why the Top 10 States Have the Highest Property Taxes

1. New Jersey — $9,590/yr (2.11%)

New Jersey has 564 independent municipalities and over 600 school districts, each with its own budget funded primarily through property taxes. This extreme fragmentation duplicates services and drives up per-capita costs. New Jersey also has some of the highest per-pupil education spending in the country. In Essex County, the median annual bill exceeds $10,000.

2. Illinois — $5,298/yr (2.01%)

Illinois has more units of local government than any other state — over 6,900 taxing districts including school districts, park districts, library districts, and fire protection districts. In Cook County (Chicago), some homeowners face combined rates above 3%. Significant pension obligations at the local level put additional upward pressure on property tax levies.

3. Connecticut — $6,643/yr (1.81%)

Connecticut has no county government. Each of its 169 towns independently provides all public services — police, fire, schools, roads — funded through property taxes. This structure, combined with high home values along the Gold Coast and in wealthy suburbs, drives the state's elevated effective rate.

4. New Hampshire — $6,667/yr (1.66%)

New Hampshire has no state income tax and no state sales tax, making it the most property-tax-dependent state in the nation. Cities and towns rely almost entirely on property taxes to fund schools, roads, and public safety. Despite ranking #4 by rate, its median dollar bill of $6,667 is the second highest in the country.

5. Vermont — $5,039/yr (1.59%)

Vermont is one of the few states where the state itself levies a property tax — a statewide education property tax that directly funds schools. Small-town governance with high per-pupil costs in rural districts keeps the overall rate well above the national average.

6. New York — $6,582/yr (1.55%)

Outside New York City, property tax rates in New York are among the highest in the nation. Westchester County homeowners routinely pay well above $10,000 annually. Mandated services, strong public-sector unions, and the cost of maintaining aging infrastructure all push local governments to rely heavily on property tax revenue.

7. Nebraska — $3,549/yr (1.49%)

Property taxes are the single largest source of local government revenue in Nebraska. School districts depend heavily on property tax levies, and agricultural land valuations add to the overall burden. The state has attempted relief through income tax credits, but the effective rate remains firmly in the top 10.

8. Texas — $4,232/yr (1.49%)

Texas has no state income tax, so property taxes fund nearly everything at the local level — schools, cities, counties, hospital districts, and utility districts. In Harris County (Houston), combined rates can exceed 2.5%. Rapid population growth increases demand for schools and infrastructure, keeping constant upward pressure on levies.

9. Wisconsin — $3,792/yr (1.42%)

Wisconsin provides a school levy tax credit that reduces the burden somewhat, but the state's overall reliance on property taxes for local government funding keeps it in the top 10. Limited revenue diversification and the cost of services in a state with cold-weather infrastructure needs contribute to the elevated rate.

10. Iowa — $2,897/yr (1.39%)

Iowa funds schools, cities, and counties primarily through property taxes. Residential properties receive a "rollback" that reduces taxable value to about 46% of assessed value, but even with this adjustment, the effective rate lands in the top 10 nationally. Agricultural property valuations add complexity to the system.

Why Are Property Taxes So High in These States?

The top 10 share several structural factors that push property taxes above the national average:

• Education funding through property tax: In most of these states, local school districts get 50–70% of their revenue from property taxes. States like New Jersey and Illinois have some of the highest per-pupil spending in the country — and homeowners foot the bill.
• No state income tax: Texas and New Hampshire have no income tax, so local governments depend disproportionately on property taxes. The tax revenue has to come from somewhere.
• Government fragmentation: New Jersey has 564 municipalities. Illinois has 6,900+ taxing districts. When each entity levies its own property tax, the combined rates stack up quickly.
• Frequent reassessments and high home values: States that reassess frequently (or have rapidly appreciating housing markets) see property tax revenue — and bills — climb in tandem with home prices.

The bottom line: if a state does not collect much revenue from income or sales taxes, property taxes fill the gap. And if local government is fragmented into hundreds of independent districts, each one adds its own levy on top of the others.

How to Reduce Your Property Tax Bill

Even in a high-tax state, there are concrete steps to lower what you owe:

• Apply for a homestead exemption: Most states offer a reduction on your primary residence. In Texas, the homestead exemption removes $100,000 from your taxable value for school district taxes — saving the average homeowner over $1,500/yr.
• Appeal your assessment: If your assessed value seems too high, file an appeal with your county assessor. Gather comparable sales data, photos of any issues that reduce your home's value, and an independent appraisal if needed. Many appeals succeed.
• Check for senior, veteran, and disability exemptions: Every state in the top 10 offers additional exemptions for qualifying homeowners. These can reduce your bill by hundreds or even thousands of dollars per year.
• Review your tax bill for errors: Incorrect square footage, lot size, or classification (residential vs. commercial) can inflate your bill. A quick review once a year is worth the time.

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