Property Tax

State Property Tax Rates Lowest to Highest

State and local governments use property taxes mostly to fund public schools. In fact, states that have a higher effective tax rate tend to have a better school system. While states that don’t have an income tax have higher sales taxes, property taxes don’t seem to be affected by it.

The property taxes in 2020 haven’t changed much for the majority of the states. Rather than worrying about the rates, you should worry about the changes to the cost of living and inflation rate. On top of your home value, these two may have an effect on how much property tax you’re going to pay as it has a direct impact on the value of your home.

Unlike income taxes, all states including the District of Columbia have property taxes. According to the U.S. Census Bureau, American households spend about $2,375 on property taxes every year. The average effective property tax rate, on the other hand, is 1.1% of the home value.

Related Article: States With No Income Tax

The state with the lowest property tax is Hawaii with just 0.27% of the home value, but it also has the highest median home value with over $500,000. The highest effective property tax rate is for homes in New Jersey. The NJ property tax rate is 2.21% in 2020.

Property Tax Rates, State by State

RankStateEffective Property Tax Rate
1Hawaii.27%
2Alabama.42%
3Louisiana.53%
4Colorado.53%
5Delaware.56%
6South Carolina.57%
7West Virginia.59%
8Wyoming.61%
9Arkansas.63%
10Utah.64%
11Nevada.64%
12Arizona.69%
13Idaho.72%
14Tennessee.73%
15California.76%
16New Mexico.79%
17Virginia.81%
18Mississippi.81%
19Montana.84%
20North Carolina.85%
21Indiana.86%
22Kentucky.86%
23Oklahoma.90%
24Georgia.91%
25Florida.93%
26Missouri.97%
27North Dakota.99%
28Oregon1.01%
29Washington1.01%
30Maryland1.09%
31Minnesota1.13%
32Alaska1.18%
33Massachusetts1.23%
34South Dakota1.32%
35Maine1.36%
36Kansas1.41%
37Iowa1.56%
38Ohio1.58%
39Michigan1.58%
40Pennsylvania1.59%
41Rhode Island1.66%
42New York1.71%
43Nebraska1.77%
44Texas1.81%
45Connecticut1.70%
46Wisconsin1.73%
47Vermont1.88%
48New Hampshire2.03%
49Illinois2.05%
50New Jersey2.21%

*The rank is from the lowest to highest.

**District of Columbia Property Tax Rate is 0.55% which would place it in the fifth place if it was a state.

Home Value in Property Taxes

Home Value in Property

Aside from the effective tax rate, your home value will also determine how much property tax you’re going to pay. Your home is based on its appraised fair market value.

Every single new installment that you add up to your home may increase the value. For example, if you put a swimming pool in the backyard, the value of your property will increase. So in these cases, you will pay more in property tax even if the property tax rate remains the same.

The best way for calculating how much you’ll pay in property taxes is first knowing the value of your property. You can do this by looking at the listing prices of houses in the area.

When are property taxes paid?

Each state has its own deadline for paying property taxes. While you can make multiple payments throughout the year to pay your property tax in some states, some require you to pay all at once.

To see the due dates for paying property taxes in your state, read property tax due dates below.

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